Which tax exemption applies to new frontier workers?

For new frontier workers subject to the new agreement in force from 1 January 2024, the tax exemption is set at 10,000 euros. Workers who were already frontier workers before 17 July 2023 instead benefit from a transitional regime until 2033, with an exemption of 7,500 euros.

How do you avoid double taxation?

Double taxation is avoided thanks to the tax credit mechanism provided for by current legislation. The worker may deduct the taxes paid at source in Switzerland from the taxes due in Italy, declaring the income in the EC framework of the model 730, in accordance with the Italy-Switzerland Convention of 9 December 1976.

What is the right of option for LAMal?

The right of option for the LAMal allows border workers in possession of the G permit to choose their own health insurance. It is an insurance obligation that provides deductibles for adults between 300 and 2,500francs, guaranteeing the necessary health coverage for those who work in Swiss territory.

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

Di Redazione Frontaliere Ticino · Published on 11 August 2026

Mountain landscape near the Italian-Swiss border

Practical guide for border workers: taxation, agreements and management of commuting between Saint-Oyen and the Valais according to current regulations.

Context

In a nutshell

New Frontier Agreement in force from 1 January 2024.
Tax at source applied exclusively in Switzerland.
Tax credit in Italy through the EC framework of 730.
Tax exemption of 10,000 euros for new frontier workers.

Key facts

What: Tax regime for border workers between Italy and Switzerland.
When: Effective January 1, 2024.
Where: Italy-Switzerland border (Valais).
Who: AFC/ESTV and Revenue Agency.
Amount: Deductible 10'000 euros (new frontier workers).
Regulations: Law 83 of 13/6/2023.

Commuting between Saint-Oyen and the Valais is a lifestyle choice for many workers working in the Swiss market. The tax discipline governing the cross-border employment relationship was profoundly updated with the entry into force, on 1 January 2024, of the new agreement signed on 23 December 2020. This regulatory framework, ratified in Italy with Law 83 of 13 June 2023, defines the ways in which the tax at source is withheld on the Swiss salary, avoiding double taxation thanks to the tax credit mechanism that can be used in the Italian tax return, specifically in the EC framework of model 730.

The updated regulatory framework

The distinction between old and new frontier workers is fundamental to determine the applicable tax treatment. For those who were already border workers before July 17, 2023, there is a transitional regime that will extend

Operational details

The analysis of daily commuting requires a clear understanding of the costs and insurance obligations. In addition to taxation, the cross-border worker must manage their own health insurance. In Switzerland, workers with a G permit have the right to opt for the LAMal health insurance. This insurance, which provides variable deductibles between 300 and 2,500 francs for adults, ensures the necessary health coverage during the working period in the Swiss territory. This is not a tax, but an insurance obligation that must be carefully evaluated based on personal needs.

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

For those who decide to embark on this experience, the correct procedure starts from the document management and knowledge of one's obligations. The first phase consists of regularizing one's working position by obtaining the G permit through the competent cantonal authorities. Once the contract is obtained, the worker must carefully monitor their pay slip, verifying that the source deductions, managed in accordance with the AFC/ESTV guidelines, are correct. It is advisable to keep every document received from the Swiss employer, as it will be essential at the time of compiling the Italian tax return.

First day as a cross-border worker? Our practical guide walks you from cantonal registration to your first paycheck.

Frequently Asked Questions

Which tax exemption applies to new frontier workers?: For new frontier workers subject to the new agreement in force from 1 January 2024, the tax exemption is set at 10,000 euros. Workers who were already frontier workers before 17 July 2023 instead benefit from a transitional regime until 2033, with an exemption of 7,500 euros.
How do you avoid double taxation?: Double taxation is avoided thanks to the tax credit mechanism provided for by current legislation. The worker may deduct the taxes paid at source in Switzerland from the taxes due in Italy, declaring the income in the EC framework of the model 730, in accordance with the Italy-Switzerland Convention of 9 December 1976.
What is the right of option for LAMal?: The right of option for the LAMal allows border workers in possession of the G permit to choose their own health insurance. It is an insurance obligation that provides deductibles for adults between 300 and 2,500francs, guaranteeing the necessary health coverage for those who work in Swiss territory.