Living in Rovello Porro: working in Ticino as a cross-border commuter

Context

In brief

• Cross-border commuters' agreement in force from 1 January 2024
• Old cross-border commuters: €7,500 exemption
• New cross-border commuters: deductible of €10,000
• Income tax withheld only in Switzerland

Key Facts

• New Cross-Border Commuter Agreement → signed on 23 December 2020; in force from 1 January 2024
• Italian ratification → Law 83 of 13 June 2023
• Old cross-border commuters → exemption of €7,500; transitional regime 2024–2033
• New cross-border commuters → deductible of €10,000
• Double Taxation Convention → 9 March 1976
• Withholding tax → withheld only in Switzerland
• AHV/IV/EO → 5.3% to be paid by the employee
• AD/AC → 1.1%; cap CHF 148'200

The tax framework starts from the dates

From 1 January 2024, the New Cross-Border Commuters Agreement is in force. It was signed on 23 December 2020 and, for Italy, was ratified with Law 83 of 13 June 2023. The wording "new tax agreement 2026" is therefore misleading when used to indicate entry into force: the date to remember is 1 January 2024.

For those who consider living in Rovello Porro and working in the Canton of Ticino as a cross-border commuter, the first check concerns the tax on income from work. The withholding takes place only in Switzerland: it should not be described as a levy made in both countries. Italy avoids double taxation through the tax credit indicated in the EC framework of 730. This step must be kept separate from the calculation of the other items of the payslip and from insurance choices.

Old and new cross-border commuters

The distinction that affects the deductible is that between old and new cross-border commuters. Old cross-border commuters are those who were already cross-border commuters before 17 July 2023: for them there is an exemption of €7,500, included in a transitional regime valid from 2024 to 2033. New cross-border commuters, on the other hand, have a deductible of €10,000. Before using a threshold, therefore, you must correctly place your situation in the category provided.

The Italy-Switzerland Double Taxation Convention was signed on 9 March 1976. Its date should not be replaced with December, nor with 2020 of the New Border Agreement. They are two different references. The international framework also matters: Switzerland is not a member of the EU or the EEA.

For the reader, the point is not to overlap the dates: the 1976 convention, the signing of the 2020 agreement, the ratification of 2023 and the effective date of 2024 have different functions. Organizing these four items before the transfer avoids using the reference "new tax agreement 2026" as a starting date. For the Italian declaration, learn more about dichiarazione dei redditi.

Operational details

The items to read in the budget

For those who choose to live in Rovello Porro and work in the Canton of Ticino, the budget does not coincide with the tax alone. The Swiss paycheck has different contribution items, while the KVG concerns health insurance. Separating the blocks helps not to confuse the net with the sum of the withdrawals.

AHV/IV/EO and AL/HC are separate contributions; UVG and BVG add other items, with the BVG linked to the age group. The percentage alone does not replace a simulation of the net: it is necessary to read which item appears in the payslip and what amount is considered. To order the table, the AVS e LPP guide can be placed alongside the costo della vita Ticino-Italia and comparatore CHF/EUR.

Who sets the rates

Withholding tax rates, including federal and cantonal rates, are determined by federal and cantonal laws. At federal level, the administration is carried out by the FTA/ESTV; the cantonal tax administrations also operate. FSIO belongs to the social security perimeter, while BFS collects statistical data: neither sets tax rates.

KVG and Italian brackets

The KVG concerns health insurance, not a so-called health tax. Cross-border commuters with a G permit are entitled to an option. An insurance choice separate from the tax deduction should therefore be considered in the budget; for adults, the deductibles indicated range from CHF 300 to CHF 2500. The link to the assicurazione LAMal serves to separate the health item from the salary calculation.

The Italian comparison changes depending on the year. From 2026, IRPEF is indicated at 23% up to €28,000, 33% from €28,001 to €50,000 and 43% over €50,000, according to Law 199/2025, art. 1 c. 3. For 2024-2025 income, the values indicated are 23%, 35% and 43%. The table must therefore be associated with the correct year, without automatically transferring the 2026 rates to previous periods.

Key points

Checklist before the transfer

The choice to live in Rovello Porro and work in Ticino as a cross-border commuter must be transformed into verifiable steps. An orderly sequence reduces the risk of confusing status, deductible, contributions and insurance.

1. Date and status: note whether you were already a cross-border commuter before 17 July 2023. This check determines whether to read the regulations for old cross-border commuters, with an exemption of €7,500 and transitional regime 2024–2033, or that of new cross-border commuters, with an exemption of €10,000.

2. Tax path: considers the tax on earned income as withheld only in Switzerland. For the Italian passage, it links the tax credit to the EC framework of 730 and organizes the dichiarazione dei redditi, without describing the situation as effective double taxation.

3. Reading the payslip: Separates AHV/IV/EO, ALV/CA, UVG and BVG. It controls 5.3% of the AHV/IV/EO, 1.1% of the ALV/HC with a cap of CHF 148,200, the 0.7–1.5% range of the UVG and the BVG at 7–18% from the 25th year. The simulatore della busta paga helps to keep items separate.

4. Health insurance: check the reference to Permesso G/B. For cross-border commuters G, there is a KVG option right; the adult deductibles indicated by the source range from CHF 300 to CHF 2500. This item must be kept separate from withholding tax.

5. Commuting and budget: for the logistics part, consult the tempi di attesa ai valichi, with references such as Brogeda and Chiasso, and add the costo auto pendolare. For the exchange between currencies, use the CHF/EUR comparator, without confusing these tools with the tax calculation.

The final check

Before closing the comparison, keep in a diagram the dates of the agreement, the category of cross-border commuters, the deductible, the credit of the EC framework, the AHV and LPP items and the choice of LAMal. The signing of the New Cross-Border Commuters Agreement remains on 23 December 2020, the Italian ratification is Law 83 of 13 June 2023 and the entry into force is 1 January 2024: these are references to be kept separate.

When you have collected the data, enter them into the calcolatore stipendio to estimate net and withholdings and concretely evaluate the project of living in Rovello Porro and working in Ticino as a cross-border commuter.