What rate applies to the frontier worker's income?

A border worker working in Switzerland is subject to tax at source, withheld directly from the employer. Rates are set by cantonal and federal laws. In Italy, income must be declared, but the tax credit is applied to avoid double taxation, in accordance with the provisions of the 1976 Convention and the new tax agreement in force since 2024.

How does the deductible for new frontier workers work?

New frontier workers, i.e. those who started working in Switzerland after 17 July 2023, benefit from a tax exemption of 10,000 euros per year. This sum is exempt from taxation in Italy, thus reducing the overall tax burden on income received in Swiss territory.

Am I obliged to subscribe to LAMal?

Border workers with a G permit have the so-called right of option. They can choose to take out Swiss health insurance (LAMal) or keep the Italian health system. It is an important choice that must be communicated to the competent authorities within the time limits provided for by law, carefully evaluating the available deductibles.

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

Di Redazione Frontaliere Ticino · Published on 11 August 2026

Alpine landscape at the border between Italy and Switzerland

Practical guide for border workers: taxation, new agreement, insurance obligations and management of cross-border work between Italy and Valais.

Context

In a nutshell

New Frontier Agreement in force from 1 January 2024.
Withholding tax withheld only in Switzerland.
Tax credit in Italy to avoid double taxation.
LAMal right of option for border workers G.

Key facts

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

Commuting between Etroubles and the Valais is a life and professional choice that requires a precise knowledge of the regulations in force between Italy and Switzerland. The fundamental pillar of this employment relationship is the New Frontier Agreement, signed on 23 December 2020 and fully operational from 1 January 2024, following the Italian ratification of Law 83 of 13 June 2023. This legislation has significantly changed the tax structure for those who work overseas, overcoming previous agreements. Taxation of income from employment takes place exclusively in Switzerland through withholding tax, managed by the cantonal authorities in collaboration with the Federal Tax Administration (AFC). To avoid the phenomenon of double taxation, Italy grants the worker the right to the tax credit, to be declared promptly in the EC framework of form 730. It is important to note that Switzerland is neither a member of the European Union nor

Operational details

Analysing the choice of residing in locations such as Etroubles working in Valais requires a careful assessment of the cost of commuting and the management of one's insurance position. The frontier worker, holder of a G permit, is subject to the health insurance obligation. The legislation provides for the right of option, which allows you to choose between LAMal coverage and the Italian health system. It is essential to remember that there is no so-called 'health tax', but a specific insurance coverage that guarantees access to benefits. Adult deductibles usually range from CHF 300 to CHF 2,500, offering flexibility based on your health and risk appetite. Payroll management should not be confused with the tasks of the UFAS, which deals with social security, or the Federal Statistical Office (BFS), which merely collects data without establishing tax rates. The latter are the exclusive responsibility of cantonal and federal authorities, such as the AFC. Those who move daily must also consider the Italian tax treatment for the income produced. In addition to the deductible, the Italian personal income tax provides for progressive steps: 23% for incomes up to 28,000 euros, 35% for the range between 28,001 and 50,000 euros and 43% for the portion exceeding 50,000 euros. The correct compilation of tax documentation, including any declaration in Italy, is a

Useful planning tools

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

Key points

For those who start their career in Valais residing in Etroubles, the procedure must follow precise steps to ensure the regularity of the position. The first step is to obtain the G permit, which authorizes work in Switzerland while maintaining residence in Italy. Subsequently, it is essential to activate LAMal insurance coverage or define your position on the right of option, using official channels to communicate your choice to the competent authority. The documentation relating to the paycheck, issued monthly by the employer, must be kept with care, as it constitutes evidence of the contributions paid and the taxes at source already withheld. To optimise the management of your finances, we recommend using the calcolatore fiscale available on the portal, which allows you to simulate the monthly net taking into account social security deductions and current rates. It is also advisable to regularly consult the insurance comparator to evaluate the options available for LAMal coverage, taking into account the different applicable deductibles. For those who have doubts about their social security situation or want to plan for the future, deepening the operation of the secondo pilastro is a prudent and advantageous choice. The current legislation, the result of the Convention to avoid double taxation of 9 December 1976 and the new agreement of 2020, offers a clear but complex picture that

Frequently Asked Questions

What rate applies to the frontier worker's income?: A border worker working in Switzerland is subject to tax at source, withheld directly from the employer. Rates are set by cantonal and federal laws. In Italy, income must be declared, but the tax credit is applied to avoid double taxation, in accordance with the provisions of the 1976 Convention and the new tax agreement in force since 2024.
How does the deductible for new frontier workers work?: New frontier workers, i.e. those who started working in Switzerland after 17 July 2023, benefit from a tax exemption of 10,000 euros per year. This sum is exempt from taxation in Italy, thus reducing the overall tax burden on income received in Swiss territory.
Am I obliged to subscribe to LAMal?: Border workers with a G permit have the so-called right of option. They can choose to take out Swiss health insurance (LAMal) or keep the Italian health system. It is an important choice that must be communicated to the competent authorities within the time limits provided for by law, carefully evaluating the available deductibles.