Who are the beneficiaries of the over 14 million euros for the border territories?

The Italian border municipalities, including those of Varesotto and Alto Verbano, receive the tax rebates deriving from the withholding tax withheld in Switzerland on the income of border workers residing in their territory.

Who qualifies for the transitional regime in Article 9?

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).

What documents are needed for the Italian tax return of a border worker?

Single Swiss certification, certificate of residence, valid G permit, any LAMal certificate for premium deduction, documents for deductible charges and health expenses. The ordinary deadline of 730 is September 30.

Are the refreshments fixed or variable every year?

With the New Agreement in force from 1 January 2024, the refunds are variable and linked to the actual revenue of the tax at source, which depends on the number of border workers, their incomes and the cantonal rates applied.

Where is the tax paid at source for a border worker resident in Italy?

Tax at source is withheld in Switzerland by the employer or the cantonal tax administration. Italy avoids double taxation by granting the tax credit in the EC framework of 730.

14 million to border territories: funds for border workers in Varese

By Marco Ferrari (editorial byline of the newsroom, AI-generated text) · Published on 30 July 2026 · Updated on 31 October 2026

Aerial view of Lake Lugano at the Italian-Swiss border with Luino in foreground

Over 14 million euros earmarked for Italian border municipalities. Refunds and new taxation for border workers in Varese: what changes.

Context

TL;DR

More than 14 million euros allocated to Italian border territories
Funds also allocated to municipalities in the Varesotto bordering Switzerland
Tax rebates linked to the withholding tax on cross-border workers
New Cross-Border Workers Agreement in force as of January 1st, 2024

Key facts

What: Allocation of funds to border territories for cross-border workers
When: Refers to the context following the entry into force of the New Agreement (January 1st, 2024)
Where: Italian border municipalities, the Varesotto area and Luino
Who: Italian local authorities benefiting from tax rebates
Amount: More than 14 million euros in total

The announcement of more than 14 million euros earmarked for Italian border territories, with resources also reaching municipalities in the Varesotto, once again shines a spotlight on the system of tax rebates linked to cross-border workers. The news, reported by Luino Notizie, falls within the framework of implementing the New Agreement between Italy and Switzerland on cross-border workers, signed on December 23, 2020 and entered into force on January 1st, 2024, following Italy's ratification through Law 83 of June 13, 2023.

The rebate mechanism under the new framework

The rebate system provides that a portion of the withholding tax withheld in Switzerland on cross-border workers' income is remitted to the Italian municipalities where they reside. 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. Withholding tax continues to be withheld in Switzerland, while Italy avoids double taxation through the tax credit in section CE of Form 730.

Withholding tax rates vary by Swiss canton and municipality. In Ticino, where a large proportion of cross-border workers residing in the Varesotto work, the cantonal tax administration manages collection under the supervision of the AFC/ESTV at the federal level. Rebates represent a significant item in the budgets of Italian border municipalities, funding local services and infrastructure.

Operational details

Practical implications for cross-border workers and municipalities

The inflow of more than 14 million euros into the border areas has concrete effects on two fronts. For the Italian municipalities in the Varesotto and upper Verbano areas, these resources bolster the ordinary budget: road maintenance, social services, schools and local public transport. For cross-border workers residing in this area, the flow of revenue-sharing payments is the territorial counterpart of the taxes they pay in Switzerland.

With the entry into force of the New Agreement, the distinction between old and new cross-border workers produces different effects on the Italian tax base. 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. Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement).

Comparison with the previous regime

Before 2024, the Convention of March 9, 1976 provided for full exemption in Italy for historic cross-border workers, with revenue-sharing payments set at a fixed amount per resident. The new system ties the revenue-sharing payments to the actual revenue from withholding tax, making them vary from year to year. This explains why the amount of more than 14 million can fluctuate: it depends on the number of resident cross-border workers, their incomes and the cantonal tax rates applied. For the municipalities in the Varesotto area, revenue predictability therefore becomes a financial planning issue.

An often-overlooked aspect concerns social security contributions. In Switzerland, cross-border workers pay AVS/AI/IPG (5,3% paid by the employee), AD/AC (1,1% on a maximum amount of CHF 148.200), LAINF (0,7-1,5%) and LPP (7-18% by age bracket from age 25). In Italy, they do not pay INPS contributions on income from Swiss employment, but they accrue pension rights in the Swiss system. Healthcare coverage is provided through LAMal, with an opt-out right for cross-border workers (G permit), with adult deductibles between CHF 300 and 2.500.

Useful tools for your case

To practically check your scenario within/beyond 20 km, use calcolatore stipendio netto and guida dichiarazione redditi.

Key points

What to do: deadlines and requirements

For cross-border workers residing in Varesotto, the Italian income tax return (Form 730 or Redditi PF) requires attention to section CE for the tax credit on Swiss withholding tax. The Swiss Unified Certification (equivalent to the CUD) must be requested from the employer or the cantonal tax administration by March. The standard deadline for the pre-filled 730 is September 30, with the option to submit it through a CAF or tax accountant.

Document checklist for the tax return

Swiss Unified Certification (employer or cantonal office)
Certificate of Italian registered residence
Valid G permit
Any LAMal certificates for premium deductions
Documentation of medical expenses and deductible charges

Tools for simulating the tax impact

The site's salary calculator allows you to compare Swiss net pay, withholding tax and the Italian tax credit by entering gross income, canton of employment, municipality of residence and family situation. 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.

Calcola il tuo netto e l'impatto dei ristorni

Frequently Asked Questions

Who are the beneficiaries of the over 14 million euros for the border territories?: The Italian border municipalities, including those of Varesotto and Alto Verbano, receive the tax rebates deriving from the withholding tax withheld in Switzerland on the income of border workers residing in their territory.
Who qualifies for the transitional regime in Article 9?: 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.
What documents are needed for the Italian tax return of a border worker?: Single Swiss certification, certificate of residence, valid G permit, any LAMal certificate for premium deduction, documents for deductible charges and health expenses. The ordinary deadline of 730 is September 30.
Are the refreshments fixed or variable every year?: With the New Agreement in force from 1 January 2024, the refunds are variable and linked to the actual revenue of the tax at source, which depends on the number of border workers, their incomes and the cantonal rates applied.
Where is the tax paid at source for a border worker resident in Italy?: Tax at source is withheld in Switzerland by the employer or the cantonal tax administration. Italy avoids double taxation by granting the tax credit in the EC framework of 730.