Italy signs decree for border municipality funds

Italian Economy Minister Giancarlo Giorgetti has signed a ministerial decree establishing state contributions for Italian border municipalities. This measure implements the fiscal agreement between Italy and Switzerland regarding the taxation of cross-border workers.

The decree utilizes the Fund for the Economic Development of Border Territories, which provides approximately 90 million euros annually. The new system applies to municipalities located within a 20-kilometer zone from the Swiss borders of the Cantons of Ticino, Graubünden, and Valais. This transition marks a shift from the 1974 system of “ristorni” (compensations paid directly by Swiss Cantons) to a more modern state-funded contribution structure.

In the province of Varese, several municipalities including Brebbia, Gerenzano, Saronno, and Vergiate will access these resources starting in 2025. The reform follows Law 83 of 2023, which ratified the bilateral agreement signed in December 2020.