Rising Prices and Crisis in Ticino and Switzerland (cross-border guide)

Context

In a nutshell

• Sick fund increased by almost 8% in Ticino, +7% expected in 2026
• Dealers in difficulty: coffee shop registers -25% of sales on coffee
• Queues at Italian petrol stations: Swiss border workers now refuel in Italy
• About 80,000 border workers work in Ticino, largely from Como

Key facts

• What: Widespread price increases in Canton Ticino hit residents and merchants
• When: Increases recorded in 2025, new increases expected from 2026
• Where: Canton Ticino, with a focus on Chiasso and border municipalities
• Who: Deputy Mayor of Chiasso Davide Lurati, citizens of Ticino, border guards
• Amount: LAMal +8% in 2025, +7% in Ticino expected in 2026 (vs +4.4% national)

The Canton of Ticino is no longer the tax haven and purchasing power that many Italians dreamed of. The price increases are beginning to be felt even in the Swiss canton, where for decades prices – from gasoline to shopping – were considered prohibitive for Italians, but advantageous for those who worked there.

Gasoline prices are reversing

Until a few years ago, queues at Swiss border gas stations were the order of the day. Comaschi and residents in the province of Como crossed the Brogeda pass to refuel at a lower price. Today the situation is completely reversed. It is the Swiss citizens themselves who go to Italy to get gasoline, taking advantage of the price differences that, although no longer abysmal, remain

Operational details

THE IMPACT ON CROSS-BORDER WORKERS: HIGHER COSTS, LESS CONVENIENCE

The phenomenon of rising prices in Ticino has direct consequences on the approximately 80,000 cross-border workers who commute daily between Italy and the Canton of Ticino. For those holding a permesso G and working in Switzerland while residing in Italy, the increased cost of living in Switzerland affects multiple aspects.

The LAMal also affects cross-border workers

Cross-border workers residing in Italy but employed in Switzerland are required to have health insurance under LAMal, both for their work period in Ticino and for healthcare coverage in Italy. The surge in costs of the Ticinese health insurance fund – with an 8% increase in 2025 and a further +7% expected in 2026 – directly impacts the household budgets of those working across the border.

Unlike residents in Switzerland, cross-border workers have the option (group G) and can choose between LAMal insurers operating in Switzerland and Italy. However, this choice does not eliminate the core issue: premiums continue to rise across the sector.

The purchasing power of the Swiss salary erodes

Although Swiss salaries remain significantly higher than Italian ones, the economic advantage of cross-border work is diminishing. A cross-border worker earning 5,000 Swiss francs monthly in Ticino now faces:

• Health insurance: premiums increasing by almost 8% annually
• Fuel: the convenience of refueling in Switzerland has diminished
• Grocery shopping: many cross-border workers report shopping in Italy
• Services and utilities: widespread increases in bills and common services

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Key points

What cross-border workers can do to face rising costs

In the face of the generalized increase in costs in Canton Ticino, cross-border workers can adopt some concrete strategies to preserve their purchasing power. Here is a practical guide to navigating the cross-border cost of living.

1. Optimize the choice of health insurance LAMal

Cross-border workers with permit G are entitled to an option and can compare different health insurers. Here's how to proceed:

1. Check the 2026 premiums as soon as they are published (usually at the end of October) 2. Compare at least 3-5 insurers through the official Swiss comparator 3. Evaluate the deductible: a higher deductible (up to 2,500 CHF for adults) reduces the monthly premium 4. Consider the alternative model: the 'family doctor' or 'telemedicine' model offers lower premiums 5. Do not delay: choices for the following year must be communicated by the end of November

2. Plan strategic purchases

With the price gap narrowing, it pays to adopt a selective approach:

• Gasoline: for purchases under 40 liters, the difference might not justify the trip
• Weekly shopping: targeted deals on specific products, not complete shopping
• Electronics and clothing: online purchases often offer better prices regardless of the border

3. Take advantage of favorable currency exchange

The CHF/EUR exchange rate significantly affects purchasing power. A cross-border worker who receives their salary in francs can:

• Monitor the exchange rate to identify favorable moments
• Use bank accounts in francs with euro cards for payments in Italy
• Plan larger expenses in Italy when the euro is strong

4. Check available tax deductions

Cross-border workers subject to withholding tax in Switzerland can still benefit from deductions:

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