How does taxation work for new border crossers?

New frontier workers, hired after 17 July 2023, are subject to taxation at source in Switzerland. Italy, to avoid double taxation, allows taxes paid in Switzerland through the tax credit to be deducted from Italian taxable income, in accordance with the new tax agreement in force from 1 January 2024.

What is the difference between old and new frontiersmen?

The old frontier workers, in service before 17 July 2023, enjoy a transitional regime until 2033 with an exemption of 7,500 euros. The new frontier workers benefit from a deductible of 10,000 euros, according to the provisions of the new tax agreement.

What is the LAMal option right?

The right of option allows border workers to choose between Swiss (LAMal) and Italian health insurance. The choice must be made in compliance with current regulations, guaranteeing the necessary health coverage for those who work in Switzerland and reside in Italy.

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

Di Valerie Linc · Published on 13 July 2026

Practical guide to commuting between Luino and Ticino: connections, taxation for border workers and management of the cost of living between Italy and Switzerland.

Context

In brief

The new tax agreement is in effect from January 1, 2024.
Cross-border workers are subject to withholding tax in Switzerland.
Italy applies a tax credit to avoid double taxation.
Commuting requires managing Swiss contributions and Italian taxes.

Key facts

What: Cross-border commuting between Italy and Switzerland.
When: Effective from January 1, 2024 (New Agreement).
Where: Border between Italy (Luino) and Canton Ticino.
Who: Cross-border workers residing in border areas.
Amount: €10,000 exemption for new cross-border workers.

Commuting between Luino and Canton Ticino is a well-established lifestyle choice for many workers, requiring a precise understanding of the current regulatory framework. From January 1, 2024, the new agreement on cross-border workers, signed on December 23, 2020, and ratified with Law 83 of June 13, 2023, introduced structural changes for those working across the border. Income from work is taxed exclusively in Switzerland via withholding tax, while Italy eliminates double taxation through the tax credit mechanism, to be declared in the CE section of form 730.

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Operational details

The commute between Luino and Locarno or other locations in Ticino requires careful planning of costs and bureaucratic procedures. Compared to the past, the distinction between old and new frontiersmen is the central node for financial planning. Those who fall under the transitional regime must carefully monitor their tax position to optimise the tax burden between the two countries. The management of pensions, including the pension pillars (AVS and LPP), requires knowledge of the current ceilings and rates, which are not managed by the UFAS but defined at the federal law level.

With regard to health care, border workers working in Ticino have the right of option between the Swiss system (LAMal) and the Italian one. The choice of LAMal allows access to healthcare services in Switzerland, with deductibles ranging from CHF 300 to CHF 2,500 for adults. It is advisable to carefully evaluate this option, considering that it is not a health tax, but a mandatory insurance with specific rules for those residing in Italy and working in Switzerland. Transport costs, including those for using motorways or public transport, represent a significant item of expenditure. Analizza il costo della vita to compare expenses between Luino and Ticino cities.

The regulatory stability guaranteed by the new agreement allows workers to have a clearer vision in the long term, eliminating the

Useful planning tools

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

Key points

For those who choose to live in Luino and work in Ticino, the startup process is marked by precise steps. The first step is obtaining permit G, which is necessary to carry out the work activity. Subsequently, it is essential to register with the Swiss social security system and to select the health insurance scheme, exercising the right of option within the established deadlines. It is crucial to keep all documentation related to the payslip, as the data contained therein are needed for the Italian tax return.

Financial management is not limited to just the payslip. It is advisable to constantly monitor the CHF/EUR exchange rate, as currency fluctuations directly affect the worker's real purchasing power. Choosing a bank that offers favorable conditions for cross-border workers can simplify daily money management and transfers. Check banking options to optimize savings management. Additionally, it is useful to periodically consult official guides to stay updated on changes in LPP rates or on thresholds for tax exemption.

In case of unemployment, the cross-border worker must interact with the relevant authorities to request benefits, following the directives regulating the relationship between INPS and Swiss offices. Knowledge of Italian tax deadlines, particularly for submitting the 730 form, is crucial for anyone wishing to maintain a compliant status. To deepen your specific situation, you can use online calculators that allow you to simulate the net monthly income, taking into account social security and tax deductions applied at source in Switzerland.

Frequently Asked Questions

How does taxation work for new border crossers?: New frontier workers, hired after 17 July 2023, are subject to taxation at source in Switzerland. Italy, to avoid double taxation, allows taxes paid in Switzerland through the tax credit to be deducted from Italian taxable income, in accordance with the new tax agreement in force from 1 January 2024.
What is the difference between old and new frontiersmen?: The old frontier workers, in service before 17 July 2023, enjoy a transitional regime until 2033 with an exemption of 7,500 euros. The new frontier workers benefit from a deductible of 10,000 euros, according to the provisions of the new tax agreement.
What is the LAMal option right?: The right of option allows border workers to choose between Swiss (LAMal) and Italian health insurance. The choice must be made in compliance with current regulations, guaranteeing the necessary health coverage for those who work in Switzerland and reside in Italy.