What does setting up at source in Switzerland mean for border workers?

The Swiss source setting for frontier workers means that workers in Ticino will no longer have to pay tax on their pay in Italy.

How can I claim the tax credit to cover taxes paid in Switzerland?

To claim the tax credit, you must submit a request to the Labour Service (SL) and attach a copy of the employment contract.

What are the procedures for moving to Uggiate-Trevano as a border worker?

To move to Uggiate-Trevano as a border worker, you must follow the procedures established by the new border agreement, including submitting a transfer request to the Labour Service (SL) and submitting a copy of the employment contract.

Moving to Uggiate-Trevano from border crossings: pros and cons (cross-border guide)

Di Marco Ferrari · Published on 10 August 2026

View of Uggiate-Trevano with Lake Lugano

Set-up at source, new border agreement and benefits for workers in Ticino.

Context

In a nutshell

New border agreement in force from 1 January 2024
Source setting in Switzerland for border guards
Benefits for workers in Ticino

Key facts

What: Transfer to Uggiate-Trevano from border crossers
When: January 1, 2024
Where: Uggiate-Trevano
Who: Workers in Ticino
Amount: CHF 0 (no associated cost)

The new law provides for the setting at source in Switzerland for frontier workers, with a tax credit to avoid double taxation.

Moving to Uggiate-Trevano as a border crossing: pros and cons

The transfer to Uggiate-Trevano as a border worker can be a beneficial option for workers in Ticino. Here are some pros and cons to consider:

Pro

No associated costs: The border agreement in force from 1 January 2024 provides for a tax credit to avoid double taxation, which means that workers will not have to pay any costs for the transfer.
Reduced tourist tax: The tourist tax in Uggiate-Trevano is only CHF 1,200 per year, a significant reduction compared to the tourist tax of CHF 3,000 per year in Lugano.
Easy access to public services: Uggiate-Trevano is equipped with a network of efficient public services, including buses and trains that connect the city to Lugano and other nearby cities.
Affordable house: the house in Uggiate-Trevano is affordable, with a monthly rent of about CHF 1,500 for

Operational details

The setting at source in Switzerland for frontier workers is one of the main novelties of the new frontier agreement. This means that workers in Ticino will no longer have to pay tax on their pay in Italy. Instead, they will be able to claim a tax credit to cover taxes paid in Switzerland. This advantage is particularly useful for workers in Ticino, as they will no longer have to face the long waits at the Chiasso crossing.

What does setting at source mean?

The source setting is a mechanism that allows frontier workers to pay taxes on their pay in Switzerland, rather than in Italy. This means that workers will no longer have to pay tax in Italy and will be able to claim a tax credit to cover taxes paid in Switzerland.

Concrete example

Let's imagine we have a frontier worker earning 4,000 Swiss francs per month and having to pay the tax in Switzerland of 7.7% (as of 1 January 2023, the average tax rate in Switzerland is 7.7% on all incomes). The worker could claim a tax credit of about 308 Swiss francs per month (4,000 x 0.077).

How does the tax credit work?

The tax credit is a tax benefit that allows frontier workers to claim a refund of taxes paid in Switzerland. The worker must submit a request for a tax credit to his employer or to the tax office

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

To move to Uggiate-Trevano as a border worker, you must follow the procedures established by the new border agreement. This includes submitting a transfer request to the Labour Service (SL) and submitting a copy of the employment contract. In addition, you must register with the Federal Statistical Office (FSO) and apply for a residence permit.

According to the federal law of 21 March 2019, foreigners who intend to move to Uggiate-Trevano must submit a transfer request within 30 days of arrival in the municipality.

For example, if an Italian citizen intends to move to Uggiate-Trevano with his family, he will have to submit a transfer request for himself and his family members within 30 days of arrival in the municipality.

In addition, a copy of the employment contract and identity card must be presented.

The Labor Service (SL) will evaluate the transfer request and may request additional information or documents.

According to the Ticino law of 25 May 2020, foreigners who intend to move to Uggiate-Trevano must register with the Federal Statistical Office (UFS) within 15 days of arrival in the municipality.

To register with the UFS, you must present a copy of your identity card and residence card.

The cost of registration with the UFS is CHF 30 per person.

In addition, you need to

Evaluating a Ticino job offer? Simulate your net payslip: enter gross salary, marital status and municipality for a detailed breakdown.

Frequently Asked Questions

What does setting up at source in Switzerland mean for border workers?: The Swiss source setting for frontier workers means that workers in Ticino will no longer have to pay tax on their pay in Italy.
How can I claim the tax credit to cover taxes paid in Switzerland?: To claim the tax credit, you must submit a request to the Labour Service (SL) and attach a copy of the employment contract.
What are the procedures for moving to Uggiate-Trevano as a border worker?: To move to Uggiate-Trevano as a border worker, you must follow the procedures established by the new border agreement, including submitting a transfer request to the Labour Service (SL) and submitting a copy of the employment contract.