Border taxation 2026: practical guide for singles

Context

In a nutshell

• New Frontier Agreement in force from 1 January 2024: taxation changes
• Tax at source ONLY in Switzerland for border workers with G Permit
• Excess for old frontier workers: €7,500 until 2033; new: €10,000
• Returns by 730 declaration (EC framework)

Key facts

• What: New Border Tax Agreement CH-IT
• When: Effective January 1, 2024 (signed December 23, 2020)
• Where: Border crossers between Ticino/Italy border
• Who: SECO/AFC (Switzerland), Revenue Agency (Italy)
• Exemption: €7,500 (old frontier workers until 2033)
• Deductible: €10,000 (new frontier workers from 17 July 2023)

On 1 January 2024, the New Frontier Agreement between Italy and Switzerland entered into force, signed on 23 December 2020 and ratified by Italy with Law 83 of 13 June 2023. For those who work in Switzerland and reside in Italy — especially for singles who manage their status as border workers — this date marks a concrete change in the taxation of income from work.

The key principle remains unchanged: the tax at source on employee income is ONLY withheld in Switzerland, never in Italy. The Double Taxation Convention (signed on 9 March 1976) ensures that Italy avoids taxing the same income again through the tax credit, reported in the EC framework of the tax return (form 730). However, the framework has become more complex for those who have to manage exemptions and

Operational details

Frontalier single: what changes in 2026

Transitional regime and impact on Italian taxation

A single frontalier who is in the condition of "old frontalier" (status before July 17, 2023) benefits until December 31, 2033, of an exemption of €7,500 of income from Italian additional taxation. In concrete terms: if you earn CHF 50,000 in gross income in Switzerland, the withholding tax in Switzerland is already deducted by the employer at the time of payment of the salary. In Italy, the taxable income for IRPEF purposes is reduced by €7,500. If your net declarable income remains below €28,000, apply the 23% IRPEF tax rate. If it exceeds €28,000, the calculation is progressive: 23% on the first €28,000, then 33% only on the portion up to €50,000 and 43% above that.

A single who is instead a "new frontalier" (after July 17, 2023) is entitled to €10,000 of exemption. The €2,500 difference has a significant impact over the years, especially for those who earn a modest income or just above the exemption thresholds. In the transitional regime, the exemption for old frontaliers decreases gradually? No: it remains fixed at €7,500 until December 31, 2033, then the regime becomes the same for everyone.

LAMal and the right to option: a choice that counts

Frontaliers with a G Permit have the right to option: they can choose to insure themselves in Switzerland through LAMal (health insurance) or maintain coverage in Italy through CMI (Mutual Italian Company) or regional mutual. If you choose Swiss LAMal, you will pay a monthly premium that varies depending on the insurer, age, and chosen exemption (CHF 300–2,500 for adults). This premium IS NOT deductible from the Italian IRPEF tax — you pay it directly in Switzerland in CHF and represents an additional expense compared to what Swiss residents would pay.

If you remain covered by Italian health insurance (CMI), you avoid the Swiss premium but must check that Italian coverage works properly for treatments received in Switzerland, where you work. Many frontaliers choose LAMal for convenience (you stay in Switzerland 8 hours a day), others maintain Italian insurance to maintain links with the local healthcare system.

AVS/LPP contributions and future pension

AVS (Swiss old-age insurance) and LPP (private second pillar) are paid in Switzerland during the years of frontalier work and count exclusively for the Swiss pension (when you reach 63/64 years according to Swiss rules). These contributions DO NOT flow into the Italian INPS: the Italian pension system is completely separate.

If you return to live stably in Italy or if your frontalier status ends, the pre-pension rights acquired in Switzerland remain tied to the Swiss system. For a single, this means planning in the long term: you can choose to receive the Swiss pension directly through a bank transfer from your country of residence (including Italy) or, in certain cases, request the redemption of contributions (limited option subject to conditions). Connect to the pension simulator on the site to estimate the amounts based on your years of contribution.

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

Operational checklist: concrete steps for the single cross-border commuter

Phase 1: Verify your cross-border commuter status and the relevant date

Before any tax calculations, ensure you have a valid G Permit. The G Permit is issued by cantonal authorities (in Ticino, by the SEM — State Secretariat for Migration) and allows you to work in Switzerland while maintaining official residence in Italy. Check the exact date of issue on the document: if it is prior to July 17, 2023, you are an "old cross-border commuter" entitled to the €7,500 exemption; if it is later, the €10,000 exemption for "new cross-border commuters" will apply.

Phase 2: Collect and organize your work documents

• Annual payslip (from the Swiss employer) highlighting: gross salary, withholding tax deducted, AVS/AI/IPG contributions, AD/AC, LAINF, and LPP contribution rate (which varies by age group, from 7% to 18%)
• Certificate of contributions paid in Switzerland (issued by the AVS compensation fund or the employer itself) proving the payments made
• LAMal certificate (if insured in Switzerland) indicating premiums paid and deductible
• Any Italian CMI documentation (if you remained covered by the Italian system)

Phase 3: Prepare and submit the Italian tax return (Modello 730)

The 730 must be submitted by September 30 of the following year: for income earned in 2025, by September 30, 2026. In section CE (dedicated to cross-border commuters), you will indicate: employment income earned in Switzerland (gross), withholding taxes already deducted in Switzerland (which act as a tax credit), and the applicable exemption/deduction (€7,500 for old cross-border commuters, €10,000 for new ones). The Revenue Agency (Agenzia delle Entrate) will process the declaration and determine if you are entitled to a refund or if you owe a payment.

Phase 4: Calculate your monthly net and check for any recoveries

Use the salary calculator on the Frontaliere Ticino website to simulate your monthly and annual net salary based on: gross salary, mandatory contributions (AVS 5.3%, AD/AC 1.1%, LPP variable by age group, LAINF 0.7–1.5%), federal/cantonal withholding tax in Ticino, and the applicable Italian-Swiss exemption (€7,500 or €10,000). If you have paid more tax than necessary during the year, the Agency will inform you of the refund in the subsequent tax return communication. If the balance is negative (debt), the amount will be communicated to you within the timeframes provided by the regulations.

Phase 5: Manage your social security position (AVS/LPP)

Contact the competent Swiss AVS compensation fund (based on the canton of employment, e.g., Ticino) at least once every 2–3 years to verify the amount of contributions registered in your name and to estimate your future Swiss pension. You can do this online via the Swiss government's "My Social Insurance" (mySI) portal.

Similarly, contact your LPP fund (usually managed by the database of the employer's financial institution) for simulations regarding the pension annuity guaranteed at maturity. Data is updated annually.

Essential deadlines for 2026

• January 31, 2026: communication of 730 data to the employer (in case of estimated payments or withholding tax)
• September 30, 2026: submission of the 730 declaration for 2025 income
• Ongoing (bimonthly): LAMal payments (if insured in Switzerland)
• Every 2–3 years: verification of AVS balance with the competent fund

Useful tools for further information

In addition to the salary calculator, the site provides resources to: verify your G Permit with the cantonal SEM, compare the choice between LAMal and Italian CMI, simulate your AVS/LPP pension annuity, and access pre-filled 730 declaration forms for cross-border workers. Contact the support service for specific clarifications regarding your personal situation.