How does the border tax at source work?

The withholding tax is a withholding tax calculated by Switzerland on your earned income, net of AVS/AI/AD/AC contributions (which reduce the tax base). It is not a double tax: Italy recognizes it as a tax credit in your 730 (EC framework). Switzerland only withholds you; Italy does not withhold further if you correctly declare foreign income.

What is the difference between old and new frontiersmen in 2024?

Old frontier workers (already before 17 July 2023) enjoy a tax exemption of €7,500 per year until 2033 (transitional regime). The new frontier workers have a deductible of €10,000. Both enjoy the 1976 double taxation convention, but the income regime is differentiated for a decade.

Where do I claim refunds if I pay too much tax?

If the Swiss employer has applied the wrong tax rates at source, or if your real income is less than the estimated one, you can request a refund (rebate) from the Ticino cantonal tax administration. It is not automatic: you must apply within the deadlines set by cantonal law (usually 3-5 years from when the withholding was made).

Is the LAMal mandatory for border crossers with a G permit?

Yes, LAMal (health insurance) is mandatory in Switzerland for anyone who works or resides there. Border workers with a G permit have the right to choose: they can insure themselves in Switzerland or (in some cantons) remain covered by the Italian system with an 'option'. Deductibles range from CHF 300 to CHF 2,500 for adults, depending on the chosen case and age group.

Do I have to fill in the 730 if I only work in Switzerland?

If your only income is from cross-border work, the Swiss employer already applies the tax at source. However, the 730 is recommended to claim the tax credit and verify that there has been no double taxation. If you live in Italy, the Italian tax authorities still ask you to report foreign income (EC framework) even if the taxation has already been done in Switzerland.

Border payroll 2026: net and taxes for singles (cross-border guide)

Di Marco Ferrari · Published on 23 August 2026

A cross-border worker reviews Swiss payslip with Italian tax documents

Full analysis of the new 2024 agreement: AVS, LPP, LAMal and Italian taxation rates for single border workers.

Context

Brief Overview

New Frontier Agreement in effect from January 1, 2024: tax reform
AVS tax rate 5.3%, LPP 7-18%, LAMal exemptions CHF 300-2,500
Old frontiersmen: exemption CHF 7,500/year until 2033; new: exemption CHF 10,000/year
Source tax only in Switzerland, tax credit in Italy via 730 (CE box)

Key Facts

What: Tax reform for frontiersmen with new fiscal and contributory regime
When: January 1, 2024 (Agreement signed December 23, 2020)
Where: Swiss-Italian border, Canton Ticino
Who: SECO, AFC/ESTV, Revenue Agency
Old frontiersmen: exemption CHF 7,500/year (regime 2024-2033)
New frontiersmen: exemption CHF 10,000/year

The New 2024 Agreement and Frontier Tax Reform

The New Frontier Agreement, in effect from January 1, 2024, has introduced a tax reform for workers who cross the Ticino border on a daily basis— from Brogeda to Chiasso. For single frontiersmen, this means a new architecture of the Swiss pay slip, with changes to tax calculations, AVS contributions, and LAMal premiums.

The source of this revision is the Double Taxation Treaty signed on December 9, 1976 between Italy and Switzerland, updated by the Agreement of December 23, 2020 (ratified by Italy with Law 83 of June 13, 2023). The principle remains unchanged: the source tax is withheld only in Switzerland, while Italy avoids double taxation by applying a tax credit in the 730 model.

For those working in Switzerland and residing in Italy, the tax rates are as follows:

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Operational details

How the payroll changes between the previous regime and 2024

A single border worker who receives a gross monthly salary in CHF sees the Swiss mandatory contributions applied in a cascade BEFORE taxation. Unlike in Italy, where personal income tax is withheld at rates of 23% (up to €28,000), 35% (€28,001-50,000), 43% (over €50,000), in Switzerland social security contributions (AVS/AI/IPG 5.3% + AD/AC 1.1%) reduce the tax base for source tax.

The New 2024 Agreement also extended the income deductibles:

Old frontier workers: €7,500 exempt from Italian taxation (until 2033)
New frontier workers: €10,000 deductible

This means that a new single frontier worker with annual earnings in CHF can convert the first €10,000 in CHF at the exchange rate, and these are not taxable in Italy until they exceed that threshold. Conversely, the excess income follows the normal Italian IRPEF rates, but with a tax credit for Swiss taxation already paid.

The practical scenario: if a single frontier earns CHF 70,000 gross per annum (equivalent to about €66,000 at the historical average exchange rate), the AVS/AI/AD/AC contributions reduce the tax base to about CHF 66,000. In Switzerland, source tax is calculated on this reduced amount. Subsequently, declaring income in Italy through 730 con quadro CE, the border worker reports the total income CHF 70,000 converted into EUR, but enjoys the €10,000 deductible (new border workers) and the

Key points

Procedure for reading the Swiss payroll and declaring income

A single frontier must know how to decode their Swiss payroll and then insert the data into the Italian 730. Here are the operational steps.

Read the Swiss payroll: what to check

Verify that the following are present:

Gross monthly (Brutto)
AVS/AI/IPG deductions (5.3%, reported as 'AHV/IV/EO')
AD/AC contributions (1.1% as 'AC')
LAMal premium (the chosen pension fund, variable by age)
Withholding tax (canton or federal, if applicable)
Net (salary after all deductions)

The withholding tax is NOT an 'extra tax'—it's the advance of the IRPEF that will be reconciled in the Italian 730 with the tax credit.

Complete the Italian 730: CE table for foreign income

In the Foreign Income table, the frontier must enter:

Total foreign income (gross CHF, converted to EUR at the fiscal year exchange rate)
Country of origin (Switzerland)
Tax paid (Swiss withholding tax in CHF, converted to EUR)

The Revenue Agency automatically calculates the tax credit if the foreign income taxed in Switzerland is less than that in Italy.

Check the personal exemption

If you are a new frontier: check that the €10,000 exemption has been applied to the Italian taxable income
If you are an old frontier: the €7,500 exemption applies until 2033
In both cases, the residual amount above exemption is taxed at standard Italian IRPEF

Deadlines and tax refunds

The 730 declaration must be submitted by September 30 (appeal by October 31) of the following year. It is not mandatory if the Swiss employer practices correct taxation, but it is recommended to claim the tax credit.

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Frequently Asked Questions

How does the border tax at source work?: The withholding tax is a withholding tax calculated by Switzerland on your earned income, net of AVS/AI/AD/AC contributions (which reduce the tax base). It is not a double tax: Italy recognizes it as a tax credit in your 730 (EC framework). Switzerland only withholds you; Italy does not withhold further if you correctly declare foreign income.
What is the difference between old and new frontiersmen in 2024?: Old frontier workers (already before 17 July 2023) enjoy a tax exemption of €7,500 per year until 2033 (transitional regime). The new frontier workers have a deductible of €10,000. Both enjoy the 1976 double taxation convention, but the income regime is differentiated for a decade.
Where do I claim refunds if I pay too much tax?: If the Swiss employer has applied the wrong tax rates at source, or if your real income is less than the estimated one, you can request a refund (rebate) from the Ticino cantonal tax administration. It is not automatic: you must apply within the deadlines set by cantonal law (usually 3-5 years from when the withholding was made).
Is the LAMal mandatory for border crossers with a G permit?: Yes, LAMal (health insurance) is mandatory in Switzerland for anyone who works or resides there. Border workers with a G permit have the right to choose: they can insure themselves in Switzerland or (in some cantons) remain covered by the Italian system with an 'option'. Deductibles range from CHF 300 to CHF 2,500 for adults, depending on the chosen case and age group.
Do I have to fill in the 730 if I only work in Switzerland?: If your only income is from cross-border work, the Swiss employer already applies the tax at source. However, the 730 is recommended to claim the tax credit and verify that there has been no double taxation. If you live in Italy, the Italian tax authorities still ask you to report foreign income (EC framework) even if the taxation has already been done in Switzerland.