How is the income of the border worker living in Lierna taxed?

Income tax at source is withheld directly in Switzerland. Italy avoids double taxation by recognizing a tax credit through the compilation of the EC framework of model 730, based on the provisions of the Convention against Double Taxation signed on December 9, 1976.

What are the differences between old and new frontier workers according to the agreement?

The New Agreement on frontier workers, signed on 23 December 2020 and entered into force on 1 January 2024 after ratification by Law 83 of 13 June 2023, provides for a transitional regime until 2033 with an exemption of 7,500 euros for old frontier workers who were already such before 17 July 2023. For new frontier workers, on the other hand, there is a deductible of 10,000 euros.

What social contributions are withheld from the salary in Switzerland?

Compulsory deductions on the Swiss salary include AVS, AI and IPG contributions equal to 5.3% borne by the employee, AD and AC unemployment insurance at 1.1% up to a ceiling of CHF 148,200, LAINF coverage between 0.7% and 1.5%, and LPP payments for occupational pension between 7% and 18% based on the age group from 25 years onwards.

Living in Lierna and working in Ticino: a practical guide for border workers (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 21 August 2026

Scenic view of the lake and mountains near the border

Comprehensive analysis for those who choose to live in Lierna and work in Ticino: connections, tax at source, costs and benefits.

Context

In a nutshell

Choose Lierna for border crossing work in Ticino
Taxation and source tax rules in Switzerland
Connections and mobility for cross-border workers
Management of the cost of living between Italy and Canton Ticino

Key facts

What: Cross-border transfer and work
When: Application of the rules in force from 1 January 2024
Where: Lierna and Canton Ticino
Who: Border workers and competent administrations
Amount: Deductible and tax deductibles established by law

The theme of commuting and residence in strategic locations such as Lierna interests many workers who cross the border every day to reach the Canton of Ticino. Living in this area of the eastern shore offers interesting ideas for those looking for a particular landscape context without giving up the job opportunities offered by Ticino's economic centres such as Lugano, Mendrisio or Chiasso. Transfer planning requires a careful assessment of the logistical, tax and regulatory aspects that govern border status. To deepen the calculation of withholdings and assess the impact on net income, you can consult the calcolatore available online.

The dynamics of cross-border work are part of a well-defined legal framework that regulates the methods of taxation. For frontier workers, income tax at source is withheld directly in Switzerland,

Operational details

Practical aspects and impact on the worker's daily life

Deciding to establish one's residence in Lierna to work in Ticino requires careful planning of travel times and commuting methods. Road and rail connections are decisive elements in assessing the feasibility of daily commuting. The journey requires optimal schedule management to avoid peak traffic congestion along connecting arteries and near major border crossings, such as Chiasso or Brogeda, where vehicle flow slows down during rush hours.

A comparative analysis of the cost of living highlights the differences between the Swiss and Italian economic systems. Those who earn a salary in Swiss francs must deal with a generally higher cost of living in Canton Ticino regarding consumer goods, services, and housing, while maintaining residence in Italy allows one to benefit from a different purchasing power. To better understand the overall economic convenience, it is useful to examine the cost of living through a detailed comparison between the two territorial realities.

From the perspective of health insurance coverage, cross-border workers fall under the health insurance option system LAMal. The regulations allow for choosing the appropriate coverage among the various options available, taking into account adult deductibles ranging between 300 and 2,500 Swiss francs. Proper management of one's insurance position requires attention to deadlines and official communications from competent bodies, such as the Federal Office of Public Health FOPH and BAG, to avoid penalties or gaps in coverage.

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Key points

Operational guide, deadlines and compliance for cross-border workers

Navigating the path to becoming a cross-border worker starting from Lierna requires strict compliance with a series of bureaucratic and tax steps. The first step consists of regularizing one's employment status by obtaining the G permit from the competent authorities, such as the State Secretariat for Migration SEM. It is essential to verify that the employment contract complies with the minimum wage parameters established in Canton Ticino and that the documentation provided by the employer is complete in every part before starting the activity.

On the tax front, the worker must pay utmost attention to the tax return in Italy, using the 730 form and correctly filling out the CE section to benefit from the tax credit and avoid double taxation on income earned in Switzerland. Carefully keeping the tax certifications issued by the Swiss employer and the receipts of withholding taxes withheld by the Swiss Federal Tax Administration FTA and ESTV is an essential requirement to avoid disputes by the Italian Revenue Agency. To optimize the management of one's tax position, it is advisable to regularly consult the support tools and the tax return guide.

Regarding social security and pensions, it is appropriate to constantly monitor the contributions paid to the designated institutions, verifying the correct application of OASI contribution rates and LPP pension plans starting from the age of twenty-five. Social security institutions offer the possibility of requesting periodic statements of account to verify one's contribution position accumulated over the years of cross-border work.

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Frequently Asked Questions

How is the income of the border worker living in Lierna taxed?: Income tax at source is withheld directly in Switzerland. Italy avoids double taxation by recognizing a tax credit through the compilation of the EC framework of model 730, based on the provisions of the Convention against Double Taxation signed on December 9, 1976.
What are the differences between old and new frontier workers according to the agreement?: The New Agreement on frontier workers, signed on 23 December 2020 and entered into force on 1 January 2024 after ratification by Law 83 of 13 June 2023, provides for a transitional regime until 2033 with an exemption of 7,500 euros for old frontier workers who were already such before 17 July 2023. For new frontier workers, on the other hand, there is a deductible of 10,000 euros.
What social contributions are withheld from the salary in Switzerland?: Compulsory deductions on the Swiss salary include AVS, AI and IPG contributions equal to 5.3% borne by the employee, AD and AC unemployment insurance at 1.1% up to a ceiling of CHF 148,200, LAINF coverage between 0.7% and 1.5%, and LPP payments for occupational pension between 7% and 18% based on the age group from 25 years onwards.