When did the New Frontier Agreement come into force?

The New Frontier Agreement entered into force on 1 January 2024. It was signed on 23 December 2020 and ratified in Italy with Law 83 of 13 June 2023.

What is the difference between 'old' and 'new' frontiersmen in terms of deductibles?

The 'old frontier workers' (already active before 17 July 2023) benefit from an exemption of 7,500 euros on taxable income in Italy. The 'new frontier workers' (from 17 July 2023 onwards) have a deductible of 10,000 euros.

Where is the labour income tax withheld for frontier workers?

Income tax at source is only withheld in Switzerland. Italy avoids double taxation through the tax credit mechanism, which is managed through the CE Framework of the model 730.

What are the main Swiss social contributions for frontier workers?

The main contributors include AVS/AI/IPG (5.3% paid by the employee), AD/AC (1.1% up to CHF 148'200), LAINF (0.7–1.5%) and LPP (7–18% by age group, from the age of 25).

Stabio customs: tax news for border workers (cross-border guide)

Di Valerie Linc · Published on 7 July 2026

From 1 January 2024, the New Frontier Agreement modifies the tax at source and the deductibles for those who transit from the border of Stabio to the Canton of Ticino.

Context

Brief Overview

The New Frontier Agreement is in force from January 1, 2024.
Source tax is withheld only in Switzerland for frontier workers.
Different fiscal thresholds for 'old' (€7,500) and 'new' (€10,000) frontier workers.
Italian ratification occurred with Law 83 of June 13, 2023.

Key Facts

What: New Frontier Agreement and tax regime for those crossing the border.
When: In force from January 1, 2024; signed on December 23, 2020.
Where: Relevant for frontier workers working in the Canton of Ticino and passing through border crossings like Stabio.
Who: Italian frontier workers working in Switzerland, Federal Administration of Contributions (AFC/ESTV), Italian Revenue Agency.
Amount: Exemption of €7,500 for old frontier workers; threshold of €10,000 for new frontier workers.

The Stabio border crossing represents a fundamental transit point for thousands of daily commuters, including frontier workers. With the entry into force of the New Frontier Agreement on January 1, 2024, the fiscal tax framework for these commuters has undergone significant changes. This agreement, signed on December 23, 2020, and ratified in Italy with Law 83 of June 13, 2023, defines new rules for the taxation of dependent employment income, with a direct impact on paychecks and tax returns in Italy.

…

Operational details

The implications of the New Border Agreement for those crossing the Stabio border are multiple and affect various aspects of personal financial management. The main consequence concerns the determination of taxable income in Italy and the application of the tax credit, a mechanism aimed at preventing the borderer from being taxed twice on the same income. The Convention against double taxation between Italy and Switzerland, signed on December 9, 1976, remains the normative pillar on which this principle is based, although the New Agreement introduces specific updates.

Useful tools for your case

To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.

Key points

For daily commuters crossing the Stabio border, it is essential to adopt a proactive strategy to manage their finances and comply with Italian and Swiss tax obligations. Understanding one's status as a 'old' or 'new' commuter is the first step to correctly applying the allowances provided by the New Frontier Agreement. ### Steps for correct fiscal management 1. Status verification: Ensure whether one belongs to the category of 'old' commuters (before 17/7/2023) or 'new' commuters. This distinction determines the application of the exemption of €7'500 or the allowance of €10'000. 2. Income tax declaration in Italy: Present the income tax declaration in Italy regularly, using the CE form of the model 730 to request the tax credit on the taxes already paid in Switzerland. It is essential to fill in this section with precision to avoid sanctions or delays. 3. Tax rate monitoring: Be aware of the Italian IRPEF tax rates and Swiss social contributions (AVS, LPP, LAMal) that affect the net income. The LAMal, the health insurance, offers commuters with a G permit the right to opt, allowing them to choose between the Swiss and Italian systems. 4. Institutional references: Interact with the competent tax authorities. In Switzerland, the Federal Administration of Contributions (AFC/ESTV) is responsible for the withholding tax, while in Italy the Revenue Agency handles the income tax declaration and tax credit. Comprehending these aspects is crucial for every commuter working in the Canton Ticino. For a detailed analysis of your net salary and taxes, we invite you to use our dedicated salary calculator for commuters. This tool can help you estimate your available income after applying the new tax rules.

Source: orphan

Frequently Asked Questions

When did the New Frontier Agreement come into force?: The New Frontier Agreement entered into force on 1 January 2024. It was signed on 23 December 2020 and ratified in Italy with Law 83 of 13 June 2023.
What is the difference between 'old' and 'new' frontiersmen in terms of deductibles?: The 'old frontier workers' (already active before 17 July 2023) benefit from an exemption of 7,500 euros on taxable income in Italy. The 'new frontier workers' (from 17 July 2023 onwards) have a deductible of 10,000 euros.
Where is the labour income tax withheld for frontier workers?: Income tax at source is only withheld in Switzerland. Italy avoids double taxation through the tax credit mechanism, which is managed through the CE Framework of the model 730.
What are the main Swiss social contributions for frontier workers?: The main contributors include AVS/AI/IPG (5.3% paid by the employee), AD/AC (1.1% up to CHF 148'200), LAINF (0.7–1.5%) and LPP (7–18% by age group, from the age of 25).