How is the income of the border crossing between Aosta and Valais taxed?

Income tax at source is only withheld in Switzerland. Italy eliminates double taxation by applying the tax credit through the EC framework of model 730, according to the agreements in force.

What are the tax exemptions for new and old border workers?

For new frontier workers there is a deductible of 10,000 euros. For old frontier workers, i.e. those who were already frontier workers before 17 July 2023, the exemption is set at 7,500 euros under the transitional regime 2024-2033.

How does LAMal health insurance work for those who work in Valais?

Border workers with a G permit have the right of option for LAMal health insurance. Adult deductibles range from a minimum of CHF 300 to a maximum of CHF 2,500.

Living in Aosta and working in Valais as a border worker (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 11 August 2026 · Updated on 25 September 2026

Alpine panorama between Italy and Switzerland for cross-border commuters

Practical guide to commuting between Aosta and the Valais: connections, tax at source, change management and rules for new and old border crossers.

Context

At a glance

Withholding tax applied ONLY in Switzerland for cross-border commuters.
New Agreement signed on December 23, 2020 and entered into force on January 1, 2024.
Tax credit in Italy via the CE section of the 730 tax return to avoid double taxation.
Exemption allowance of 10,000 euros for new cross-border commuters and 7,500 euros for old ones.

Key facts

What: Cross-border commuting and taxation
When: New agreement in force since January 1, 2024
Where: Aosta and Canton Valais
Who: Cross-border workers, AFC/ESTV, Italian Revenue Agency
Amount: Exemption allowance 10,000 euros for new, 7,500 euros for old commuters
Regulations: Ratification Law 83 of June 13, 2023

Commuting between Aosta and Canton Valais represents a significant professional and life choice for many workers who reside in Italy but work across the border. Managing one's employment situation requires in-depth knowledge of the tax and social security regulations in force between Italy and Switzerland. With the entry into force of the new regulatory framework, governed by the new cross-border agreement signed on December 23, 2020 and entered into force on January 1, 2024, ratified in Italy by Law 83 of June 13, 2023, the tax situation has undergone important updates. Withholding tax on employment income is levied solely in Switzerland, while Italy avoids double taxation through a tax credit mechanism managed via the CE section of the 730 tax return. The Double Taxation Convention between the two countries originally dates back to March 9, 1976. It should be noted that Switzerland is neither a member of the European Union nor of the European Economic Area, a factor that affects bureaucratic and administrative procedures for those who regularly cross the border. Workers who move daily or periodically from Aosta to locations in Valais must deal with specific compliance requirements related to wage deductions and the choice of tax regime, distinguishing between old cross-border workers, meaning those who were already such before July 17, 2023, and those newly hired after that date. To explore the economic impact on the payslip in depth, you can consult the dedicated calculator for taxes and net salaries.

General regulatory and tax aspects

Tax rates and withholding taxes are established by federal and cantonal laws and are administered by the Swiss Federal Tax Administration and the competent cantonal authorities. From a social security and insurance perspective, Swiss contributions include AHV/AVS, IV/AI, and EO/IPG with a 5.3% employee share, ALV/AC unemployment insurance at 1.1% up to the maximum ceiling of 148,200 Swiss francs, UVG/LAINF accident coverage between 0.7% and 1.5%, and the second pillar BVG/LPP with rates between 7% and 18% depending on the age bracket starting from age 25. In Italy, IRPEF income tax rates are divided into three brackets: 23% up to 28,000 euros, 33% for the bracket between 28,001 and 50,000 euros, and 43% for incomes exceeding 50,000 euros.

Operational details

Planning the transfer or maintenance of the residence in Aosta with the aim of working in Valais requires an accurate analysis of the costs and benefits related to the cost of living and transport costs. The route that connects the Aosta Valley capital to the Swiss territory requires the crossing of mountain passes and road connections, whose travel times vary depending on seasonal conditions and commuter traffic. For frontier workers, the management of health coverage represents a further fundamental chapter: LAMal health insurance provides frontier workers with the right of option, with deductibles for adults between 300 and 2,500 Swiss francs. It is essential to carefully assess your insurance position to avoid unnecessary discovery or double taxation between the health systems of the two countries. With regard to tax breaks, old frontier workers benefit from an exemption of 7,500 euros and a transitional regime covering the period from 2024 to 2033, while new frontier workers can benefit from an exemption of 10,000 euros on employee income produced in Switzerland.

Foreign exchange management and cash flows

Working in Swiss francs and residing in Italy involves the need to regularly manage the currency exchange between CHF and EUR. Exchange rate fluctuations can affect purchasing power and budget planning

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

Addressing the work path between Aosta and Valais requires compliance with a series of operational steps and well-defined bureaucratic deadlines. From the moment of hiring in Swiss territory, the worker must apply for the work permit G, which authorizes the performance of the professional activity while maintaining tax and personal residence in Italy. It is necessary to verify your social security position, collecting all the documentation relating to the contributions paid in Switzerland through recognized entities such as SUVA and SECO, as well as monitoring the communications from INPS and the Revenue Agency for the correct presentation of the tax return in Italy. The checklist for the first day of work and the start of the cross-border career can be consulted through the section dedicated to work first days. With regard to LAMal health insurance, the worker must exercise the right of option within the terms provided by law, communicating his choice to the competent offices of the FOPH or BAG. Throughout the year, it is essential to keep Swiss payrolls to facilitate the completion of Form 730 and the application of the tax credit. For those who need a detailed overview of monthly deductions and net salary simulation, you can use the official calculator available on the portal.

Frequently Asked Questions

How is the income of the border crossing between Aosta and Valais taxed?: Income tax at source is only withheld in Switzerland. Italy eliminates double taxation by applying the tax credit through the EC framework of model 730, according to the agreements in force.
What are the tax exemptions for new and old border workers?: For new frontier workers there is a deductible of 10,000 euros. For old frontier workers, i.e. those who were already frontier workers before 17 July 2023, the exemption is set at 7,500 euros under the transitional regime 2024-2033.
How does LAMal health insurance work for those who work in Valais?: Border workers with a G permit have the right of option for LAMal health insurance. Adult deductibles range from a minimum of CHF 300 to a maximum of CHF 2,500.