How is the income of a border worker living in Cantù taxed?

Earned income is subject to tax at source in Switzerland. To avoid double taxation, the worker must declare income in Italy in the EC framework of 730, benefiting from the tax credit for taxes already paid in Swiss territory, in accordance with the 1976 Convention.

What are the differences between new and old frontiersmen?

The old frontier workers, already such before 17 July 2023, enjoy a transitional regime until 2033 and a tax exemption of 7,500 euros. New frontier workers, hired after that date, benefit from a tax exemption set at 10,000 euros.

What is LAMal for border workers?

LAMal is Switzerland's compulsory health insurance. Workers with a G permit have the right of option to join, being able to choose between different deductibles ranging from 300 to 2,500 francs, depending on individual needs for health coverage.

Living in Cantù and working in Ticino as a border worker (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 21 September 2026

Panoramic view of Lugano, a central location for cross-border commuters working in Ticino

Practical guide for those who choose Cantù as their residence: taxation, new border agreement, AVS, LAMal and management of daily commuting to Ticino.

Context

In brief

New Agreement entered into force on January 1, 2024.
Exclusive taxation in Switzerland with a tax credit in Italy.
10,000 euro tax allowance for new cross-border workers.
Mandatory LAMal insurance for employees with a G permit.

Key facts

Cross-border Workers Agreement: December 23, 2020 Entry into force: January 1, 2024 Allowance for new cross-border workers: 10,000 euro Allowance for existing cross-border workers: 7,500 euro AVS/AI/IPG contribution: 5.3% employee share AD/AC contribution: 1.1% (cap 148,200 CHF)

Moving to Cantù for those working in the Canton of Ticino is a choice that requires careful planning, based on the current regulations governing the relationship between Italy and Switzerland. Since January 1, 2024, the new agreement signed on December 23, 2020, has introduced substantial changes for cross-border workers. Income from employment is taxed exclusively in Switzerland via withholding tax, managed by the cantonal tax administrations and the Federal Tax Administration (AFC/ESTV). To avoid double taxation, the worker must declare the income in Italy, utilizing the tax credit through the CE section of the 730 tax return form.

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Operational details

Practical implications of commuting

Choosing Cantù means dealing daily with the dynamics of cross-border traffic towards the Canton of Ticino. The main road connection involves using the A9 motorway network, which merges towards the Brogeda border crossing, a nerve center for access into Swiss territory. Managing travel time is a critical factor for those residing far from the immediate border. It is advisable to constantly monitor traffic conditions, as unforeseen events or congestion peaks can heavily influence the quality of work life. From a social security perspective, in addition to the mandatory AVS contributions, the worker must assess their position regarding the second pillar (LPP), with rates varying between 7% and 18% based on age, starting from 25 years old. Managing health insurance coverage is equally crucial: cross-border workers holding a G permit have the right of option for LAMal, the mandatory Swiss health insurance, which provides for deductibles between 300 and 2,500 francs. It is essential not to confuse LAMal with a tax, as it is an insurance coverage necessary to access healthcare services. Compared to the past, the regulatory framework requires greater awareness of income tax declaration procedures. The taxpayer must ensure they correctly document every payment made in Switzerland to maximize the benefit of the tax credit in Italy, thus avoiding excessive taxation. The distinction between withholding tax, managed by the FTA, and social contributions managed by social security institutions, must be clear for every worker. Proper maintenance of tax documentation, keeping copies of Swiss payslips and salary certificates, is the first step for a smooth management of one's status as a cross-border worker residing in Cantù. Family budget planning…

Key points

Operational procedures and useful tools

For those intending to settle in Cantù and embark on a career path in Ticino, the procedure begins with obtaining the G permit, issued by the competent authorities following a regular employment contract. Subsequently, it is necessary to regularize one's insurance status. The worker must activate LAMal coverage or exercise the right of option, depending on their specific situation, to ensure compliance with current regulations. Regarding social security, it is advisable to monitor one's AVS position and evaluate joining supplementary pension schemes, such as the third pillar, to supplement future income. Managing income requires the use of digital tools to simulate the net salary, considering tax deductions and Swiss social contributions. To effectively compare net income, it is useful to use a tax calculator that allows for estimating the impact of withholding tax and the Italian tax credit. Furthermore, financial planning must take into account commuting costs, including car maintenance expenses and the potential purchase of the Swiss motorway vignette, which is necessary for traveling on Swiss highways. For those wishing to optimize the exchange rate management between CHF and EUR, constant monitoring of exchange rates through a currency comparator is a recommended practice. Finally, for those needing to delve into their health coverage, a health insurance comparator is available to evaluate the various options offered by LAMal. Transparency and constant updates are the keys to managing one's status as a cross-border worker autonomously and in an informed manner. Any change in income or family situation must be promptly communicated to the competent tax authorities, both in Switzerland and in Italy, to avoid discrepancies in…

Frequently Asked Questions

How is the income of a border worker living in Cantù taxed?: Earned income is subject to tax at source in Switzerland. To avoid double taxation, the worker must declare income in Italy in the EC framework of 730, benefiting from the tax credit for taxes already paid in Swiss territory, in accordance with the 1976 Convention.
What are the differences between new and old frontiersmen?: The old frontier workers, already such before 17 July 2023, enjoy a transitional regime until 2033 and a tax exemption of 7,500 euros. New frontier workers, hired after that date, benefit from a tax exemption set at 10,000 euros.
What is LAMal for border workers?: LAMal is Switzerland's compulsory health insurance. Workers with a G permit have the right of option to join, being able to choose between different deductibles ranging from 300 to 2,500 francs, depending on individual needs for health coverage.