What tax is paid on income from work in Switzerland?

For border crossers, tax at source applies in Switzerland, as established by the federal and cantonal laws administered by the AFC/ESTV. Italy avoids double taxation by means of the tax credit, which must be indicated in the EC framework of the tax return.

Who is considered a 'new frontier' under the new agreement?

All those who started working in Switzerland after 17 July 2023 are considered new frontier workers. For these workers, the tax exemption is set at 10,000 euros.

What should old frontiersmen do?

Border workers who worked in Switzerland before 17 July 2023 fall under the transitional regime valid until 2033, which provides for a tax exemption of 7,500 euros. It is essential to keep the documentation proving border status prior to that date.

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

Di Marco Ferrari · Published on 11 August 2026

Mountain landscape between Oyace and Valais

Practical guide to commuting between Oyace and Valais: tax rules, new agreement and income management between Switzerland and Italy.

Context

In a nutshell

New Frontier Agreement in force from 1 January 2024.
Exclusive taxation in Switzerland with tax credit in Italy.
Deductible of 10,000 euros for new frontier workers.
Exemption of 7,500 euros for frontier workers before 17/07/2023.

Key facts

What: New IT-CH Frontier Agreement
When: Effective January 1, 2024
Where: Border between Italy and Switzerland
Who: Revenue Agency and Swiss authorities
Amount: Deductible 10,000 euros for new frontier workers

Cross-border commuting involving Oyace to the Valais is governed by the New Frontier Agreement, signed on 23 December 2020 and fully operational from 1 January 2024. This legislation, ratified in Italy with Law 83 of 13 June 2023, defines the methods of taxation for those who reside in Italy and work in Switzerland. The key principle provides for the taxation of income from employment exclusively in Switzerland, with a tax credit mechanism in Italy to avoid double taxation, an operation managed through the EC framework of the 730 tax return. For workers, the distinction between old and new frontier workers is decisive. Persons who were border workers before 17 July 2023 benefit from a transitional regime that will last until 2033, with a tax exemption of 7,500 euros. On the contrary, for those who started the employment relationship later, the deductible

Operational details

The analysis of commuting between Oyace and Valais requires specific attention to cost management and social security planning. A border worker working in Switzerland must deal with the LAMal system, the compulsory health insurance, for which there is a right of option. Adult deductibles range from CHF 300 to CHF 2,500, directly affecting the monthly net. It is essential to remember that LAMal should not be confused with a health tax, but represents a necessary insurance cover. In terms of financial planning, the comparison between the Swiss gross income and the real net income requires the application of the Swiss source tax and the subsequent declaration in Italy. In Italy, the IRPEF rates are progressive: 23% up to 28,000 euros, 35% for the 28,001-50,000 euro range and 43% for the part exceeding 50,000 euros. Accurate calculation of your net requires careful simulation based on the calcolatore fiscale, which is essential to understand the impact of mandatory contributions and allowable deductions. Traffic dynamics, especially for those travelling on alpine routes, can significantly affect the quality of life, making the choice of residence in Oyace a decision to be assessed not only for the cost of living, but also for the consistency of connections. Unlike Ticino, where the flow is massive towards the urban areas of Sottoceneri, work in Valais

Useful tools for your case

To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.

Key points

To operate correctly as a border worker, it is necessary to follow a structured procedure from the first day of employment. The first step is the regularization of the work permit, typically the G permit for border workers. This document is essential for access to services and for the correct application of the withholding tax by the Swiss employer. Subsequently, it is indispensable to proceed with the registration in the resident population register and the verification of the requirements for health coverage. Those who work in Switzerland must exercise the right of option for health coverage within the prescribed terms, choosing between the LAMal system or the permanence in the Italian national health service. The documentation must be carefully kept: pay slips, salary certificates, and attestations of contributions paid (AVS, LPP) are necessary for the correct compilation of the Italian tax return. In particular, the CE box of the 730 must reflect the taxes paid in Switzerland to allow the application of the tax credit. For those who plan their future, the evaluation of a third pillar (3a) is a strategic choice that allows a tax deduction in Switzerland and greater pension security. It is advisable to constantly monitor the legislative changes, since the implementation of the 2020 Agreement entails periodic updates. The tools available to the border worker include pay slip simulators that help to separate the gross from the net, taking into account the different deductions (AVS, AI, IPG, AD, LAINF, LPP). If discrepancies are found between the withholding tax in the pay slip and what is provided by the legislation, it is necessary to turn to the Federal Administration of Contributions or to one's trusted advisor in a timely manner for a review. Do not wait for the end of the fiscal year to verify your contributory situation. Regularly using the tax calculator allows you to prevent errors in the Italian tax return and optimize the management of cross-border income, ensuring full compliance with the regulations in force between Italy and Switzerland.

Frequently Asked Questions

What tax is paid on income from work in Switzerland?: For border crossers, tax at source applies in Switzerland, as established by the federal and cantonal laws administered by the AFC/ESTV. Italy avoids double taxation by means of the tax credit, which must be indicated in the EC framework of the tax return.
Who is considered a 'new frontier' under the new agreement?: All those who started working in Switzerland after 17 July 2023 are considered new frontier workers. For these workers, the tax exemption is set at 10,000 euros.
What should old frontiersmen do?: Border workers who worked in Switzerland before 17 July 2023 fall under the transitional regime valid until 2033, which provides for a tax exemption of 7,500 euros. It is essential to keep the documentation proving border status prior to that date.