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 March 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

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.

The New Cross-Border Agreement, signed on December 23, 2020, and ratified by Italy with Law 83 of June 13, 2023, revises the tax and contribution regime for those living in Italy and working in Switzerland. Cross-border workers are subject to withholding tax deducted ONLY by the Swiss employer. Italy avoids double taxation by recognizing this tax as a credit in the annual declaration (CE section of the 730 form). New cross-border workers (not resident in Italy before July 17, 2023) benefit from a €10,000 allowance on employment income. This tax advantage translates into a significant reduction in the tax burden in the first years of transfer.

In addition to taxation, those choosing Solbiate con Cagno must consider Swiss administrative and contribution constraints. Permit G (cross-border) allows working in Switzerland with stable residence in Italy. Swiss pension contributions are mandatory: AVS (Old Age and Disability Insurance) at 5.3% for the employee, plus AD/AC (unemployment and calamity) contributions at 1.1% up to CHF 148,200 annually, and LPP (complementary pension insurance) at 7–18% according to the age bracket (from the 25th year of life). Additionally, mandatory enrollment in LAMal (Swiss health insurance) averages CHF 2000–3500 annually, with adult deductibles from CHF 300 to 2500.

For those residing in Solbiate con Cagno, the Ticino employment basin remains accessible through the Brogeda and Gaggiolo crossings. The choice to move to Italy while maintaining employment in Ticino represents a balance between economic benefits (Swiss paycheck, access to robust pension systems like AVS and LPP, Italian tax allowance €10,000) and hidden costs (AVS/LAMal contributions, bank fees for CHF/EUR exchange, daily commuting).

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.

Advantages for the commuter

Access to robust pension systems: AVS (public old-age pension) and LPP (occupational second pillar) guarantee a high pension level, superior to the average Italian INPS
Lower cost of living: housing and services in the Como area cost less than in Ticino; a single residence reduces duplications
Job stability: the Ticino job market offers high salaries in CHF, with protection from Italian economic fluctuations
Tax exemption: new commuters benefit from an annual €10,000 deduction from Italian income in the first years

Disadvantages and risks

Daily commuting: trips from Solbiate to Ticino generate stress, vehicle wear, time cost, personal pollution
Double tax administration: although simplified by the 2024 agreement, it requires diligence in the annual 730 declaration
CHF/EUR exchange rate volatility: money transfers from Ticino to Como are subject to currency fluctuations
G permit constraints: changing employer requires permit renewal; job loss can jeopardize residence in Italy

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

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).

Phase 5: Opening a dual-currency bank account It is advisable to open an account with a bank that operates in CHF-EUR to facilitate transfers from the employer and minimize exchange fees. Banks in Ticino and Italian institutions with branches in Como offer this solution.

Pre-move checklist

✓ Signed employment contract with a Swiss employer
✓ Valid identity document + passport
✓ Residence certificate from the Municipality of Solbiate with Cagno
✓ Complete SEM application form for Permit G request
✓ Dual-currency CHF-EUR bank account
✓ Scanned copy of Permit G once obtained
✓ LAMal subscription within 3 months from the start of employment
✓ Communication to the Revenue Agency before the first 730 declaration

Before formalizing the move, use the pay slip calculator to estimate the net monthly income considering AVS (5.3%), LAMal (CHF 200–300 monthly), cantonal rates of Ticino, and Italian tax credit. This will allow you to verify the real economic convenience and plan your personal budget.

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 March 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.