Who is considered a 'new frontier worker' for the €10,000 deductible?

A border crosser is classified as' new 'if they were not resident in Italy and did not hold a G Permit before 17 July 2023. The €10,000 deductible on employee income is applicable from the first year of employment in Switzerland. Border workers who were already border workers before this date (' old border workers') benefit from the transitional regime 2024–2033 with an exemption of €7,500.

How does tax at source work in Switzerland for border workers?

Tax at source is withheld directly from the Swiss employer on the monthly paycheck. IT IS NOT double taxation: Italy recognizes this tax as a credit in the annual declaration (EC framework of model 730), avoiding overlap. The rate depends on the Canton of Ticino and the personal situation of the worker, according to the federal and cantonal rates administered by AFC.

Do I have to pay AVS contributions even if I live in Italy?

Yes. As an employee in Switzerland, you are obliged to enroll in the AVS (Old Age and Disability Insurance) with a 5.3% contribution at your expense and an additional share from the employer. These Swiss contribution periods are recognised for the calculation of old-age annuity. The Italian-Swiss Convention of 9 December 1976 avoids double taxation.

Which health insurance should I choose as frontier category G?

As a border crossing category G, you have the right of option: you can stay in the Italian system (SSN) or enroll in a LAMal (mandatory Swiss health insurance). Most choose LAMal for consistency with the Swiss social security system. LAMal covers essential services (hospital, doctor, drugs) with adult deductibles from CHF 300 to 2500 per year.

What are the hidden costs of transferring to Solbiate as a border worker?

In addition to the G Permit (about CHF 50–100 for forms), the main costs are: LAMal (CHF 2000–3500 per year depending on deductible), bank fees for CHF-EUR exchange, Swiss motorway vignette (CHF 40 per year), parking at crossings (variable). On the Italian side: optional INPS registration for integration, annual declaration 730. Evaluate the total before deciding.

Living in Solbiate with Cagno as a border crosser: how to do it (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 4 September 2026

Panoramic view of the Switzerland-Italy border in southern Ticino showing Alpine valleys and cross-border checkpoint infrastructure at sunset.

Moving to border Italy and working in Ticino: tax advantages, procedures allowed, costs of living and impact on paycheck.

Context

In brief

Withholding tax deducted ONLY in Switzerland; tax credit in Italy via 730
New cross-border agreement effective from January 1, 2024: €10,000 allowance for new cross-border workers
Permit G: access to Swiss employment with stable residence in border Italy
Mandatory AVS 5.3% for the employee; LAMal Swiss health insurance with CHF 300–2500 deductibles

Key facts

What: Living in Solbiate con Cagno (Como) and working in Switzerland as a cross-border worker category G
When: New Cross-Border Agreement effective from January 1, 2024
Where: Solbiate con Cagno (Italy, Como) and Canton Ticino (Switzerland), accessible via Brogeda and Gaggiolo crossings
Who: Italian cross-border workers (new from July 17, 2023)
Taxation: Withholding tax in Switzerland; €10,000 annual income allowance for new cross-border workers
AVS: Employee contribution 5.3%, with access to the Swiss public pension system
LAMal: Mandatory Swiss health insurance with the option for category G cross-border workers

Solbiate con Cagno is a municipality in the province of Como, a few kilometers from the Ticino border. In recent years, it has attracted Italian cross-border workers interested in working for companies, public entities, and institutions in Italian Switzerland. The choice to reside in border Italy while maintaining employment in Ticino responds to multiple factors: tax advantages derived from the New Cross-Border Agreement that came into effect on January 1, 2024, lower cost of living in Italy compared to Ticino, and geographical proximity to the main Ticino employment basins.

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Operational details

Economic analysis: is it worth living in Solbiate and working in Ticino?

The economic convenience depends on a close comparison between the Italian cost of living, the Swiss paycheck, and the combined tax pressure Switzerland-Italy. In general, housing costs (rent, real estate purchase) in the province of Como are lower than Ticino prices. A commuter with a gross annual income of CHF 70,000 (approximately €66,000 equivalent) will pay withholding tax according to the Ticino cantonal rates, with additional tax credit recognized in Italy through the 730 declaration. The €10,000 exemption for new commuters reduces the Italian taxable income, creating a favorable tax effect in the first years of transfer.

However, hidden costs erode the gross advantage. The Swiss LAMal health insurance costs an average of CHF 2000–3500 annually for an adult, depending on the chosen deductible. To this, add the AVS contributions (5.3% employee) and LPP (7–18% depending on age), deducted directly from the paycheck. On the Italian side, commuters remain enrolled in INPS for the redemption of periods not covered by AVS and maintain declaration obligations with the Agenzia delle Entrate. Additional costs: bank fees for dual-currency CHF-EUR management, Swiss highway vignette (CHF 40 annually), parking at border crossings.

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Key points

Step-by-step procedure: how to move to Solbiate and become a cross-border worker

Phase 1: Obtaining Permit G (cross-border work) The first step is to obtain Permit G from the Swiss authorities (Migration Section of the Canton Ticino, or SEM — State Secretariat for Migration). Required documents: valid passport or identity document, signed employment contract with a registered Swiss employer, residence certificate from the Municipality of Solbiate with Cagno, complete SEM application form. Permit G is tied to the employment relationship: changing employers requires renewal.

Phase 2: Tax registration with the Federal Tax Administration (FTA) The Swiss employer will open the tax management with the FTA. The cross-border worker must communicate the Italian tax code and Permit G number. The FTA collects the withholding tax according to the cantonal rate of Ticino applied to the gross monthly income, deducted directly from the paycheck.

Phase 3: Enrollment in LAMal within 3 months The cross-border worker must sign a health insurance contract with a Swiss insurance company (Helsana, Concordia, CSS, etc.). Choose a deductible (CHF 300, 500, 1000, 1500, 2000, or 2500 annually). Essential services covered at 100% (hospital, medications, basic medical visits).

Phase 4: Communication to the Italian Revenue Agency Communicate the Italian residence to the Revenue Agency (Income section) and report employment in Switzerland with the Permit G number. In the annual model 730, section CE (foreign tax credit), report the withholding tax paid in Switzerland and apply a €10,000 exemption on the gross income (if a new cross-border worker).

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Frequently Asked Questions

Who is considered a 'new frontier worker' for the €10,000 deductible?: A border crosser is classified as' new 'if they were not resident in Italy and did not hold a G Permit before 17 July 2023. The €10,000 deductible on employee income is applicable from the first year of employment in Switzerland. Border workers who were already border workers before this date (' old border workers') benefit from the transitional regime 2024–2033 with an exemption of €7,500.
How does tax at source work in Switzerland for border workers?: Tax at source is withheld directly from the Swiss employer on the monthly paycheck. IT IS NOT double taxation: Italy recognizes this tax as a credit in the annual declaration (EC framework of model 730), avoiding overlap. The rate depends on the Canton of Ticino and the personal situation of the worker, according to the federal and cantonal rates administered by AFC.
Do I have to pay AVS contributions even if I live in Italy?: Yes. As an employee in Switzerland, you are obliged to enroll in the AVS (Old Age and Disability Insurance) with a 5.3% contribution at your expense and an additional share from the employer. These Swiss contribution periods are recognised for the calculation of old-age annuity. The Italian-Swiss Convention of 9 December 1976 avoids double taxation.
Which health insurance should I choose as frontier category G?: As a border crossing category G, you have the right of option: you can stay in the Italian system (SSN) or enroll in a LAMal (mandatory Swiss health insurance). Most choose LAMal for consistency with the Swiss social security system. LAMal covers essential services (hospital, doctor, drugs) with adult deductibles from CHF 300 to 2500 per year.
What are the hidden costs of transferring to Solbiate as a border worker?: In addition to the G Permit (about CHF 50–100 for forms), the main costs are: LAMal (CHF 2000–3500 per year depending on deductible), bank fees for CHF-EUR exchange, Swiss motorway vignette (CHF 40 per year), parking at crossings (variable). On the Italian side: optional INPS registration for integration, annual declaration 730. Evaluate the total before deciding.