Which income does the €10,000 limit apply to?

Article 9’s transitional regime applies only to workers who meet the Agreement’s definition and worked in Graubünden, Ticino or Valais between 31 December 2018 and 17 July 2023; covered employment income is taxable exclusively in Switzerland. The ordinary regime applies in other cases, with Italian taxation and credit for Swiss tax where applicable. The €10,000 in Article 4 of Law 83/2023 is only the limit for income referred to in Article 1(175) of Law 147/2013, not a general allowance. [FTA factsheet](https://www.estv.admin.ch/dam/it/sd-web/Zbr5Jb-40aYm/int-laender-it-faktenblatt-faqs-it.pdf) · [Agreement, Article 9](https://www.fedlex.admin.ch/eli/cc/2023/410/en) · [Normattiva, Article 4](https://www.normattiva.it/atto/caricaDettaglioAtto?atto.articolo.numero=4&atto.codiceRedazionale=23G00087&atto.dataPubblicazioneGazzetta=2023-06-30&bloccoAggiornamentoBreadCrumb=true&classica=true&dataVigenza=09%2F09%2F2026&generaTabId=true&tipoDettaglio=singolavigenza&title=lbl.dettaglioAtto).

How do you avoid double taxation?

Italy avoids double taxation through the tax credit. The worker must declare the income received in Switzerland in the EC framework of form 730, allowing to deduct the taxes already paid at source in Switzerland according to the regulations in force.

What is the right of option for LAMal?

The right of option allows border workers to choose between Swiss health insurance (LAMal) and the Italian health system. The choice must be weighted according to your needs, considering that the LAMal deductibles for adults range between 300 and 2,500 CHF.

Transfer to Villa di Chiavenna by border crossing: useful guide

By Redazione Frontaliere Ticino (AI-generated text) · Published on 11 August 2026 · Updated on 31 October 2026

Panoramic view of a mountain road near the border between Italy and Switzerland

Analysis of the advantages and tax considerations for those living in Villa di Chiavenna working in Switzerland under the new tax agreement.

Context

In a nutshell

Border agreement in force from 1 January 2024.
taxation in Switzerland with tax credit in Italy.
For Article 9 of the Agreement, “old frontier workers” are people who met the tax requirements and worked in Graubünden, Ticino or Valais on 17 July 2023 or during the period from 31 December 2018 through 17 July 2023. Article 9 keeps covered employment income taxable exclusively at source in Switzerland; other workers follow the ordinary regime, with ordinary taxation in Italy, a credit for Swiss tax and Swiss withholding at 80% of the ordinary rates. The €10,000 figure in Article 4 of Italian Law No. 83/2023 is only the income limit referred to in Article 1(175) of Law No. 147/2013; it is not a general allowance for new frontier workers. Sources: ESTV factsheet (Italian) · Agreement, Art. 9 · Law No. 83/2023, Art. 4.
LAMal option obligation for health insurance.

Key facts

What: New border tax agreement
When: Effective January 1, 2024
Where: Italian-Swiss border
Who: Italy and Switzerland
The €10,000 limit is not a general allowance: Article 4 of Italian Law No. 83/2023 applies it only to the income referred to in Article 1(175) of Law No. 147/2013.

The transfer to Villa di Chiavenna for those working in Switzerland requires a precise understanding of the regulations in force, in particular after the entry into force of the new tax agreement on 1 January 2024. This agreement, ratified in Italy with Law 83 of 13 June 2023, has modified the methods of taxation of labour income. For the frontier, the tax at source is withheld in Switzerland, while Italy avoids double taxation by applying the tax credit through the EC framework of the model 730. This is a structural change compared to the convention of 9 March 1976. The worker must bear in mind that Switzerland is not a member of the EU or the EEA, which involves specific dynamics in the management of the G permit. The monitoring of the rates, established by federal and cantonal laws, is managed by the Federal Tax Administration (AFC/ESTV). It is essential to distinguish between the competences of the entities: the UFAS deals with social security

Operational details

Analysing the choice to live in Villa di Chiavenna requires an in-depth examination of the costs and benefits related to border status. “Old frontier workers” qualify under Article 9 only if they met the tax requirements and worked in Graubünden, Ticino or Valais during the stated period; covered employment income is taxable exclusively in Switzerland. There is no general €7,500 allowance; the €10,000 figure in Article 4 of Law No. 83/2023 applies only to income referred to in Article 1(175) of Law No. 147/2013. This distinction is fundamental to correctly calculate the annual tax burden. Italian personal income tax rates, which range from 23% up to 28,000 euros, to 33% for the range between 28,001 and 50,000 euros, up to 43% for incomes over 50,000 euros, interact with the Swiss system. In Switzerland, social security contributions include the AVS/AI/IPG at 5.3% borne by the employee, the AD/AC at 1.1% (capped at CHF 148,200), the LAINF between 0.7% and 1.5% and the LPP, which varies from 7% to 18% based on age group, from 25 years.

Health and Social Security Management

A crucial aspect is the management of health coverage. The frontier worker has the right of option for LAMal, the Swiss health insurance. Adult deductibles range from CHF 300 to CHF 2,500. It is necessary to carefully evaluate the choice between the Italian and the Swiss health system, also based on your family situation. Using a calcolatore allows you to simulate the net impact of salary considering Swiss withholdings and taxes in Italy.

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

The procedure for those who decide to settle in Villa di Chiavenna and maintain their occupation across the border includes some mandatory steps. First of all, it is essential to regularize your residence position at the Municipality of Villa di Chiavenna, communicating the correct status of frontier worker. Subsequently, it is necessary to manage the documentation relating to the G permit with the competent cantonal authorities. The declaration of income in Italy must be made with extreme precision using the EC framework for the application of the tax credit, thus avoiding double taxation on income produced in Switzerland. With regard to the management of cash flows, many border crossers opt for the opening of bank accounts that facilitate currency exchange, considering the fluctuations between CHF and EUR. You can consult a comparator to monitor exchange rates and optimize the transfer of funds. Another important activity is the periodic verification of the Swiss paycheck, ensuring that all withholdings (AVS, LPP, LAINF) comply with the provisions of the law. For those who need further information on their situation, the portal offers dedicated tools. It is strongly recommended to use the calcolatore to obtain precise estimates on the monthly and annual net, taking into account the specific deductions provided for by the new tax agreement. Correct bureaucratic management, including the correct compilation of the

Frequently Asked Questions

Which income does the €10,000 limit apply to?: Article 9’s transitional regime applies only to workers who meet the Agreement’s definition and worked in Graubünden, Ticino or Valais between 31 December 2018 and 17 July 2023; covered employment income is taxable exclusively in Switzerland. The ordinary regime applies in other cases, with Italian taxation and credit for Swiss tax where applicable. The €10,000 in Article 4 of Law 83/2023 is only the limit for income referred to in Article 1(175) of Law 147/2013, not a general allowance. FTA factsheet · Agreement, Article 9 · Normattiva, Article 4.
How do you avoid double taxation?: Italy avoids double taxation through the tax credit. The worker must declare the income received in Switzerland in the EC framework of form 730, allowing to deduct the taxes already paid at source in Switzerland according to the regulations in force.
What is the right of option for LAMal?: The right of option allows border workers to choose between Swiss health insurance (LAMal) and the Italian health system. The choice must be weighted according to your needs, considering that the LAMal deductibles for adults range between 300 and 2,500 CHF.