How does taxation for G border workers work after the New 2024 Agreement?

Tax at source is withheld only in Switzerland. Italy recognises a tax credit in form 730 (EC framework) to avoid double taxation. The new frontier workers have a deductible of €10,000 per year. Old frontier workers (registered before 17 July 2023) enjoy an exemption of €7,500 with a transitional regime until 2033. AVS/AI/IPG (5.3%) and AD/AC (1.1%) contributions are deductible in Italy, reducing the overall tax burden.

When did the New Frontier Agreement come into force and what changes?

The New Frontier Agreement was signed on 23 December 2020 and entered into force on 1 January 2024. It was ratified by Italy with Law 83 of 13 June 2023. It involves new tax regimes, differentiated deductibles (€10,000 for new frontier workers, €7,500 for old ones), more favourable refunds and a renewed administrative structure for border tax management.

Do I need to open a bank account in Ticino or can I use an Italian bank?

It is strongly recommended to open an account with a bank in Ticino or Switzerland. The employer needs Swiss IBANs and BICs for salary crediting. An Italian bank with Swiss branches is an alternative, but EUR→CHF exchange fees can be higher. A Ticino account also simplifies tax payments and border administrative procedures.

What are the main costs of commuting from San Fermo della Battaglia to Ticino?

Petrol (150–250 CHF per month for 200 km per week), car maintenance (100 CHF per month estimated), vehicle depreciation, and possible parking in Ticino (20–50 CHF per week in some municipalities). Over time, these costs erode a significant fraction of the cost of living savings. An alternative is public transport (Como-Lugano train), which costs CHF 150–200 per month per border pass, but reduces stress and wear and tear.

How does the health insurance (LAMal) for G border workers work?

With Permit G, LAMal is mandatory in Switzerland. You cannot choose to support yourself with Italian insurance. The minimum allowance for adults is CHF 300. You can exercise the option for complementary Italian insurance only in limited cases. Rewards vary by case and age. Many border workers integrate with an Italian policy to cover local needs (e.g. physiotherapy).

Living in San Fermo della Battaglia and working in Ticino (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 19 August 2026

Scenic view of Lugano at sunset with Swiss Alps in the background — typical destination for San Fermo della Battaglia commuters

Practical guide for G border workers: how to move from San Fermo della Battaglia, tax regime 2024, G Permit, commuting costs, procedure checklist.

Context

In a nutshell

Frontier G pay taxes only in Switzerland with an excess of €10,000 per year
New Frontier Agreement in force from 1 January 2024
Cost of living in border Italy is lower than Ticino
Crossings and daily commuting are structural for border crossers

Key facts

What: Tax regime for G border workers (Swiss taxation + Italian tax credit)
When: From 1 January 2024 (New Agreement signed 23 December 2020)
Where: Ticino border areas (Chiasso, Brogeda, Mendrisio, Locarno)
Who: Employees with G Permit from Italy
Deductible: €10,000 per year for new frontier workers
Swiss taxes: AVS/AI/IPG 5.3%, AD/AC 1.1%
Italy tax: Avoided by tax credit (EC framework of 730)

Living in San Fermo della Battaglia and working in Ticino is one of the most frequent choices for those looking to combine quality of Italian life with Swiss salaries. The province of Como, a few kilometres from the Ticino border, makes this logistically viable option for thousands of border crossers.

The New Frontier Agreement, which entered into force on 1 January 2024, has transformed the tax regime significantly. New frontier workers benefit from a deductible of €10,000 per year. The crucial element: the tax at source is withheld exclusively in Switzerland. Italy recognizes tax credits to avoid double taxation through the CE framework of the model 730. This

Operational details

Concrete advantages and disadvantages of the transfer

Advantages of living in Italy on the border

The first attractor is the cost of living. Border Italy has significantly lower rent and consumer prices than Ticino. The living space is greater at the same price: a house of 120 m² in Ticino costs three or four times more per month to rent than an equivalent one in the province of Como. Services — doctor, dentist, food, schools — are less expensive. A frontier family has access to a higher material quality of life, with spaces, gardens, services at sustainable prices.

The second attractor is identity and community. Living in Italy allows you to maintain family, linguistic and cultural ties. If you have children, they will grow up in contact with the Italian language, the Italian school, the local community. This is a significant psychological well-being factor for many frontier workers.

The third is the now relativised administrative procedure. Permit G has been standardized for years. It's not as complicated a procedure as it was thirtyyears ago. An experienced accountant or consultant guides the process without drama.

Real and significant disadvantages

Daily commuting is structural and non-negotiable. Commuting represents the concrete reality: traffic, waiting at the crossings during peak periods, gasoline costs, wear and tear of the vehicle. In winter, Italian roads to the border can be critical. Plan at least

Useful planning tools

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

Key points

Step-by-Step Procedure for Relocating

Step 1: Pre-Relocation — Documents and Permit G

Before relocating, contact your Ticinese employer and request confirmation of your position and a formal job offer. Prepare to provide:

A valid Italian passport or ID document
A penal certificate (from the Comune of San Fermo della Battaglia or current residence)
A declaration of origin (if required by SEM)
A labor contract or official pre-agreement

Your employer will submit a Permit G request to SEM (State Secretariat for Migration). The process takes approximately 2-4 weeks. It's not advisable to relocate without preliminary confirmation of the permit.

Step 2: Domicile and Anagrafica Registration

Once you've found accommodation in San Fermo della Battaglia or the surrounding area, register with the Italian local authority within 8 days of relocation. Obtain an Italian residence certificate. Inform your Ticinese employer and Italian tax services of your new address (Residency Guide).

Step 3: Bank Accounts and Financial Management

Open a bank account with a Ticinese or Swiss bank. Your employer needs your Swiss IBAN and BIC for salary crediting. Activate automatic EUR→CHF exchange if offered by the bank (reduces exchange spread on recurring transactions). Consider a securities account for long-term pension savings (Frontier Banks Comparator).

Step 4: Frontier Taxation — Declaration and Withholding

Notify your Swiss employer of your frontier status through an official form (available from HR). Your employer will withhold:

AVS/AI/IPG: 5.3% of gross salary
AD/AC: 1.1% of gross salary
Source tax: variable by canton and income level

…

Frequently Asked Questions

How does taxation for G border workers work after the New 2024 Agreement?: Tax at source is withheld only in Switzerland. Italy recognises a tax credit in form 730 (EC framework) to avoid double taxation. The new frontier workers have a deductible of €10,000 per year. Old frontier workers (registered before 17 July 2023) enjoy an exemption of €7,500 with a transitional regime until 2033. AVS/AI/IPG (5.3%) and AD/AC (1.1%) contributions are deductible in Italy, reducing the overall tax burden.
When did the New Frontier Agreement come into force and what changes?: The New Frontier Agreement was signed on 23 December 2020 and entered into force on 1 January 2024. It was ratified by Italy with Law 83 of 13 June 2023. It involves new tax regimes, differentiated deductibles (€10,000 for new frontier workers, €7,500 for old ones), more favourable refunds and a renewed administrative structure for border tax management.
Do I need to open a bank account in Ticino or can I use an Italian bank?: It is strongly recommended to open an account with a bank in Ticino or Switzerland. The employer needs Swiss IBANs and BICs for salary crediting. An Italian bank with Swiss branches is an alternative, but EUR→CHF exchange fees can be higher. A Ticino account also simplifies tax payments and border administrative procedures.
What are the main costs of commuting from San Fermo della Battaglia to Ticino?: Petrol (150–250 CHF per month for 200 km per week), car maintenance (100 CHF per month estimated), vehicle depreciation, and possible parking in Ticino (20–50 CHF per week in some municipalities). Over time, these costs erode a significant fraction of the cost of living savings. An alternative is public transport (Como-Lugano train), which costs CHF 150–200 per month per border pass, but reduces stress and wear and tear.
How does the health insurance (LAMal) for G border workers work?: With Permit G, LAMal is mandatory in Switzerland. You cannot choose to support yourself with Italian insurance. The minimum allowance for adults is CHF 300. You can exercise the option for complementary Italian insurance only in limited cases. Rewards vary by case and age. Many border workers integrate with an Italian policy to cover local needs (e.g. physiotherapy).