Which tax exemption applies to new frontier workers?

For new frontier workers, i.e. those who started working in Switzerland after 17 July 2023, the tax exemption provided for by the new agreement is 10,000 euros.

How do you avoid double taxation between Italy and Switzerland?

Double taxation is avoided through the application of the tax credit in Italy. The worker must declare the income produced in Switzerland and deduct the tax at source already paid, following the indications relating to the CE framework of the model 730.

What are the mandatory social contributions in Switzerland?

The main contributions include AVS/AI/IPG (5.3% to be paid by the employee), AD/AC unemployment insurance (1.1% up to CHF 148,200), LAINF accident insurance (0.7–1.5%) and the second LPP pillar (7–18% depending on age, from 25 years).

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

Di Redazione Frontaliere Ticino · Published on 11 August 2026

Mountain landscape between Doues and the Swiss border

Guide to commuting between Doues and Valais: tax rules, social security and management of cross-border work in compliance with current agreements.

Context

In a nutshell

New border agreement in force from 1 January 2024.
Tax at source withheld exclusively in Switzerland.
Tax credit in Italy to avoid double taxation.
Tax exemption of 10,000 euros for new frontier workers.

Key facts

What: CH-IT border tax regime
When: Effective January 1, 2024
Where: Italy-Switzerland border
Who: Federal Tax Administration (FTA)
Amount: Deductible €10,000 for new frontier workers

Commuting between Doues, in the Aosta Valley, and the Valais is a lifestyle choice that requires a clear understanding of current regulations. From 1 January 2024, the new agreement on frontier workers, signed on 23 December 2020 and ratified by Law 83 of 13 June 2023, regulates the taxation of cross-border labour. For those residing in Doues and serving in the Canton of Valais, the tax at source is withheld in Switzerland, while Italy eliminates double taxation through the tax credit mechanism, to be included in the EC framework of model 730.

Tax legislation

The management of taxes is entrusted to the Federal Tax Administration (AFC) for the Swiss part. Workers who started the activity after 17 July 2023 fall under the new regime, which provides for a deductible of 10,000 euros. For the so-called 'old frontier workers', already active before that date, there is a transitional regime valid until

Operational details

Social security and contribution aspects

The paycheck of a border worker working in the Valais is subject to several compulsory social contributions. AVS/AI/IPG deductions amount to 5.3% borne by the employee. To these is added the contribution for unemployment insurance (AD/AC) set at 1.1% up to a salary ceiling of CHF 148,200. Accident coverage (LAINF) is between 0.7% and 1.5%, while the second pillar (LPP) provides contributions varying between 7% and 18% depending on the age group, from 25 years. These deductions are managed according to federal rules and do not depend on Italian social security institutions such as INPS, but on Swiss compensation funds.

Health management

With regard to health coverage, border workers in possession of the G permit enjoy the right of option, which allows them to choose between the Italian health system and the LAMal. The LAMal policy, mandatory for those who choose the Swiss system, provides deductibles for adults between CHF 300 and CHF 2,500. This choice should not be confused with tax issues, as it is an insurance obligation managed according to residence and type of permit. The advice of specialized professionals can help to better understand the scope of these obligations, especially in view of the annual deadlines for tax reporting in Italy, where the Revenue Agency monitors the correct application

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

Procedures for the border worker

For those who live in Doues and work in the Valais, correct document management is the first step to avoid fines or tax errors. It is necessary to maintain a precise archive of the pay slips issued by the Swiss employer, as these constitute the basis for the income tax declaration in Italy. The tax credit must be calculated with precision, taking into account the withholding tax already paid in Switzerland. We recommend checking the Federal Administration of Contributions (AFC) communications periodically for any updates on the tax rates or withholding tax procedures that may affect the net pay.

Useful tools

Constant monitoring of one's remuneration situation is facilitated by the use of digital tools that allow simulating the calculation of taxes and contributions. Before starting a work relationship, or in case of a change of position or salary, it is useful to use the tax calculator to have a clear estimate of one's monthly net income. This tool, based on current regulations, supports the worker in understanding the impact of pension withholdings, such as AVS and LPP, on their remuneration. In addition, it is advisable to consult one's tax consultant regularly for the management of the CE framework of the model 730, ensuring that each document is in compliance with the directives of the Revenue Agency and the Convention against Double Taxation of 9 December 1976. A correct financial planning, supported by the use of the tax calculator, ensures greater serenity in the management of transfrontier commuting.

Frequently Asked Questions

Which tax exemption applies to new frontier workers?: For new frontier workers, i.e. those who started working in Switzerland after 17 July 2023, the tax exemption provided for by the new agreement is 10,000 euros.
How do you avoid double taxation between Italy and Switzerland?: Double taxation is avoided through the application of the tax credit in Italy. The worker must declare the income produced in Switzerland and deduct the tax at source already paid, following the indications relating to the CE framework of the model 730.
What are the mandatory social contributions in Switzerland?: The main contributions include AVS/AI/IPG (5.3% to be paid by the employee), AD/AC unemployment insurance (1.1% up to CHF 148,200), LAINF accident insurance (0.7–1.5%) and the second LPP pillar (7–18% depending on age, from 25 years).