What are the tax differences between old and new frontier workers?

The tax regime depends on the date of 17 July 2023. Former frontier workers, who already carried out this activity before that date, benefit from an exemption of 7,500 euros within a transitional regime valid from 2024 to 2033. The new frontier workers, on the other hand, fall into a franchise of 10,000 euros. It is essential to check your position with respect to this time threshold before planning the family budget.

What social deductions affect net income in Switzerland?

The social security deductions to be considered are: AVS/AI/IPG at 5.3% for the employee, AD/AC at 1.1% (with a cap of 148,200 CHF), LAINF with a rate between 0.7% and 1.5% and finally the LPP, which varies from 7% to 18% based on the age group, from 25 years. You must separate these items to properly calculate net disposable income.

How does LAMal health insurance for border workers work?

Frontier G enjoys the right of option with regard to LAMal health insurance. Applicable deductibles for adults range from a minimum of CHF 300 to a maximum of CHF 2,500. This expense must be included in the calculation of recurring expenses to precisely define the economic sustainability of the transfer between Sangiano and Ticino.

Living in Sangiano and working in Ticino: budget guide (cross-border guide)

Di Marco Ferrari · Published on 29 September 2026

Panoramic view of Lugano, a destination for many cross-border workers.

The new Frontier Agreement has been in force since 1 January 2024. Learn how to distinguish exemptions, deductibles and deductibles for your life project.

Context

In brief

Agreement signed on December 23, 2020
In force since January 1, 2024
Old cross-border commuters: €7,500 exemption
New cross-border commuters: €10,000 allowance

Key facts

New Cross-Border Commuter Agreement → December 23, 2020
Entry into force → January 1, 2024
Old cross-border commuters → those already working as such before July 17, 2023
Transitional regime → 2024–2033
Exemption for old cross-border commuters → €7,500
Allowance for new cross-border commuters → €10,000
Italy-Switzerland Convention → March 9, 1976
LAMal → health insurance

The new Cross-Border Commuter Agreement, signed on December 23, 2020, entered into force on January 1, 2024. For those considering living in Sangiano and working in Ticino as a cross-border commuter, this is the first date to keep in mind before comparing salary, expenses, and relocation.

The Italian ratification is Law 83 of June 13, 2023. The schedule distinguishes between two categories. 'Old' cross-border commuters are those who were already working as such before July 17, 2023: for them, a €7,500 exemption remains within a transitional regime covering the 2024–2033 period. New cross-border commuters, on the other hand, have a €10,000 allowance. This distinction is the first step to include in your personal budget.

Taxation and institutions to interpret correctly

The cross-border commuter's employment income is subject to withholding tax only in Switzerland. Italy avoids double taxation through a tax credit. For those preparing to move to Sangiano, the figure to check in your simulation is therefore the effect of the Swiss withholding tax on your disposable income, keeping the applicable allowance for your profile separate.

The Double Taxation Convention between Italy and Switzerland was signed on March 9, 1976. Switzerland is not a member of the European Union or the European Economic Area. Federal and cantonal withholding tax rates are established by federal and cantonal laws and are administered by the AFC/ESTV at the federal level and by the cantonal tax administrations.

The FSO (BFS) collects statistical data and does not set tax rates. In your individual file, it is also advisable to note the Permit G/B, without confusing it with the date that separates old and new cross-border commuters. This is the most organized way to interpret the taxation related to working in the Canton of Ticino.

The next step is to keep the plans distinct. The tax regime date, withholding tax, and social security contributions all enter the same budget, but they require different checks. For the Sangiano-Ticino project, this separation avoids attributing a tax, contribution, or health rule solely to Italian residency.

Operational details

The practical budget comparison

Living in Sangiano and working in Ticino requires a comparison that takes into account income, deductions, and the cost of living. The area of residence, the connection to the workplace, and the chosen border crossing must be evaluated as separate items: the name of a municipality alone does not replace the calculation of the actual route. The same applies to travel times, which must refer to the route actually chosen.

Profile	Data to apply
Old cross-border commuter	Before July 17, 2023; €7,500 exemption; 2024–2033 transitional regime
New cross-border commuter	€10,000 allowance
G-permit holder	Right of option for LAMal
Swiss social security	AVS/AI/IPG, AD/AC, LAINF, and LPP according to the indicated rates

In a hypothetical scenario, those who fall under the definition of an old cross-border commuter must not replace the exemption with the allowance provided for new ones. Conversely, those who fall into the second category must start from the €10,000 value. The date of July 17, 2023, therefore becomes the initial check before comparing two family budget hypotheses.

Factors affecting disposable income

The Swiss percentages to be separated when reading the payslip are AVS/AI/IPG at 5.3% for the employee, AD/AC at 1.1% with a cap of CHF 148,200, LAINF between 0.7% and 1.5%, and LPP between 7% and 18% depending on the age bracket, starting from age 25. To keep these plans separate, consult AVS/LPP/pension.

Regarding healthcare, LAMal is the health insurance. The G-permit holder has a right of option, and deductibles for adults range from CHF 300 to CHF 2,500. The choice must be reported in the recurring expenses section, along with LAMal health insurance.

The cost of living must then be compared with the net income, not the gross. The cost of living Ticino vs Italy is used to organize this part of the budget in a comparable way. For mobility, Brogeda can be included among the crossings to be evaluated only if consistent with the chosen route; here too, the useful data is that of the concrete route, not a standard time.

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

From assessment to checklist

The choice can be transformed into a sequence of checks. The objective is to arrive at a consistent comparison between living in Sangiano and working in Canton Ticino, using the same income basis and distinguishing taxation, social security, healthcare and mobility.

Five operational steps

1. Set the reference date. Check whether you were already a cross-border worker before 17 luglio 2023. This information determines the comparison between the €7'500 exemption and the €10'000 allowance, as well as the transitional regime 2024–2033 for old cross-border workers.

2. Separate taxation from residence. On the payslip, identify Swiss withholding tax and verify that the calculation is interpreted according to the rates established by federal and cantonal laws. At federal level, the administrative reference is AFC/ESTV; for the cantonal part, the cantonal tax administrations are considered.

3. Reconstruct the social contributions. Keep AVS/AI/IPG at 5,3%, AD/AC at 1,1% with cap CHF 148'200, LAINF between 0,7% and 1,5%, and LPP between 7% and 18% from age 25 in separate rows. The result makes it possible to read net income without confusing social security and tax.

4. Verify the healthcare component. LAMal is health insurance; for the G cross-border worker, there is the right of option. Include in the comparison also the deductible for adults, ranging between CHF 300 and CHF 2'500, and place this item alongside the other costs of the move.

5. Update the Italian comparison. For incomes 2024–2025, the IRPEF rates indicated are 23%, 35% and 43%. From 2026, the scale indicated by Law 199/2025, art. 1 c. 3, is 23% up to €28'000, 33% from €28'001 to €50'000 and 43% above €50'000. Keep the two time frames separate.

After these steps, put disposable income, Swiss taxation, the AVS, LPP and LAMal items, cost of living and mobility in the same overview. For the Italian part, also retain the reference to the Agenzia delle Entrate; for statistical aspects, BFS does not set rates.

To turn the comparison into an estimate of salary, net income and taxes, use calcolatore stipendio.

Frequently Asked Questions

What are the tax differences between old and new frontier workers?: The tax regime depends on the date of 17 July 2023. Former frontier workers, who already carried out this activity before that date, benefit from an exemption of 7,500 euros within a transitional regime valid from 2024 to 2033. The new frontier workers, on the other hand, fall into a franchise of 10,000 euros. It is essential to check your position with respect to this time threshold before planning the family budget.
What social deductions affect net income in Switzerland?: The social security deductions to be considered are: AVS/AI/IPG at 5.3% for the employee, AD/AC at 1.1% (with a cap of 148,200 CHF), LAINF with a rate between 0.7% and 1.5% and finally the LPP, which varies from 7% to 18% based on the age group, from 25 years. You must separate these items to properly calculate net disposable income.
How does LAMal health insurance for border workers work?: Frontier G enjoys the right of option with regard to LAMal health insurance. Applicable deductibles for adults range from a minimum of CHF 300 to a maximum of CHF 2,500. This expense must be included in the calculation of recurring expenses to precisely define the economic sustainability of the transfer between Sangiano and Ticino.