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.

How does the taxation for new frontier workers change compared to the old ones?

The new frontier workers (hired after 17 July 2023) have an exemption of 10,000 euros in Italy; the old frontier workers maintain the exemption of 7,500 euros until 2033. Both benefit from the tax credit for source tax paid in Switzerland.

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 exclusively 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 (cross-border guide)

Di Marco Ferrari · Published on 30 July 2026

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

Context

In a nutshell

Over 14 million euros allocated for the Italian border territories
Funds also intended for the municipalities of Varese neighbouring Switzerland
Tax refunds linked to the tax at the source of border crossers
New Frontier Agreement in force from 1 January 2024

Key facts

What: Allocation of funds to border territories for border workers
When: Referring to the post-entry context of the New Agreement (1 January 2024)
Where: Italian border municipalities, Varese and Luino area
Who: Italian local authorities benefiting from tax refunds
Amount: Over 14 million euros in total

The announcement of more than 14 million euros for the Italian border territories, with resources that also reach the municipalities of Varesotto, rekindles the spotlight on the system of tax refunds linked to border workers. The news, reported by Luino Notizie, is part of the implementation of the New Agreement between Italy and Switzerland on frontier workers, signed on 23 December 2020 and entered into force on 1 January 2024 after Italian ratification with Law 83 of 13 June 2023.

The refreshment mechanism in the new framework

The refreshment system provides that a portion of the tax at source withheld in Switzerland on the income of border workers is paid to the Italian municipalities of residence. With the New Agreement, the deductible for new frontier workers rises to 10,000 euros, while for old frontier workers (already such before 17 July

Operational details

Practical implications for border crossers and municipalities

The inflow of over 14 million euros into the border territories has concrete repercussions on two fronts. For the Italian municipalities of Varesotto and Alto Verbano, these resources feed the ordinary budget: road maintenance, social services, school and local public transport. For border crossers residing in thisarea, the flow of refunds is the territorial consideration of the tax they pay in Switzerland.

With the entry into force of the New Agreement, the distinction between old and new frontier workers generates differentiated effects on the Italian tax base. A frontier worker hired after 17 July 2023 sees the deductible of 10,000 euros applied: the share of excess income contributes to forming the total income in Italy, taxed by income tax brackets (23% up to 28,000 euros, 35% between 28,001 and 50,000 euros, 43% more). Those who enjoy the status of an old border worker maintain the exemption of 7,500 euros until 2033, with a tax credit for the source tax already paid in Switzerland.

Comparison with the previous regime

Before 2024, the Convention of 9 December 1976 provided for the total exemption in Italy for historical frontier workers, with fixed refreshments per inhabitant. The new system links refunds to actual tax revenue at source, making them variable year-on-year. This explains why the amount of over 14 million can fluctuate: it depends on the number of resident border crossers, the

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

What to do: deadlines and obligations

For frontier workers residing in Varese, the Italian tax return (Form 730 or PF Income) requires attention to the EC framework for the Swiss source tax credit. The Swiss Single Certification (equivalent to the cud) must be requested from the employer or the cantonal administration of contributions by March. The ordinary deadline for the pre-filled 730 is 30 September, with the possibility of sending it via CAF or accountant.

Document checklist for declaration

Single Swiss Certification (employer or cantonal office)
Certificate of Italian personal residence
Permit G valid
Any LAMal certificates for premium deduction
Documentation of health expenses and deductible charges

Tools to simulate tax impact

The site's salary calculator allows you to compare net Swiss, source tax and Italian tax credit by entering gross income, canton of work, municipality of residence and family situation. For those who evaluate a change of residence or a new cross-border employment, the comparison between old and new frontier workers highlights the difference in deductibles (7,500 vs 10,000 euros) and the horizon of the transitional regime.

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.
How does the taxation for new frontier workers change compared to the old ones?: The new frontier workers (hired after 17 July 2023) have an exemption of 10,000 euros in Italy; the old frontier workers maintain the exemption of 7,500 euros until 2033. Both benefit from the tax credit for source tax paid in Switzerland.
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 exclusively 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.