What are the main disputed incompatibility profiles?

The motion challenges the 'health tax' on two main grounds: the possible violation of Article 9 of the Borderers Agreement and the incompatibility with the Agreement on the Free Movement of Persons (FTA). It is argued that the tax specifically penalises frontier workers, reducing their net income and introducing a restriction on the free movement of labour prohibited by the case law of the Court of Justice of the EU.

What does the motion ask of the Council of State?

The motion asks to suspend, in whole or in part, the reimbursement to Italy of the tax at source levied on border workers. In addition, it requires activating the federal authorities to assess the legitimacy of the tax, promoting diplomatic initiatives with Italy to challenge the measure and regularly informing the Grand Council about the results of the legal checks.

Why is the tax called a selective incentive?

According to the parliamentary document, the Italian implementing decree allocates part of the revenue from the tax to increase the accessory treatment of medical and nursing staff in border areas. This mechanism is interpreted as an economic incentive that, combined with the penalisation of frontier workers, aims to influence the cross-border labour market in favour of the Italian health system.

Frontier workers: request for the suspension of the tax to Italy (cross-border guide)

Di Valerie Linc · Published on 16 July 2026

A new parliamentary motion challenges the Italian 'health tax', asking the Council of State to block the reimbursement of taxes at source.

Context

In a nutshell

Contested the Italian 'health tax' for border workers.
Request for suspension of the reimbursement of the tax at source.
Profile of incompatibility with the Free Movement Agreement (FTA).
Required involvement of federal and diplomatic authorities.

Key facts

What: Motion for the suspension of the tax refund to Italy.
Who: Congresswoman Plr Cristina Maderni and other senior councillors.
Motivation: Incompatibility with the border agreement and the FTA.
Status: Parliamentary act under discussion.

The debate on the so-called "health tax" introduced by Italy against frontier workers subject to the transitional regime of the Italian-Swiss tax agreement is enriched by a new parliamentary chapter. The deputy Plr Cristina Maderni, with the support of other senior advisers, has filed an act that raises an additional legal incompatibility profile with respect to what has already emerged previously. In addition to the possible violation of Article 9 of the Borderers Agreement, non-compliance with the Agreement on the Free Movement of Persons between Switzerland and the European Union (FTA) is now invoked.

Legal Dispute

According to the promoters of the initiative, the Italian tax measure, although not formally based on nationality, specifically affects those who work in Switzerland. The tax determines an additional economic burden which, according to the

Operational details

The analysis of the decree raises concrete concerns about the transnational labor market. The Italian implementing decree provides that part of the tax derived from this transfer will be used to increase the supplementary treatment of medical and nursing staff operating in border areas. Although it is not a direct subsidy to the base salary, the mechanism creates a selective economic incentive aimed at strengthening the attractiveness of the Italian national healthcare system in neighboring regions, while at the same time penalizing the net income of frontier workers. The parliamentary act emphasizes that the combination of a fiscal penalty and an internal incentive alters the labor market dynamics, requiring a prompt assessment of the compatibility of such action with the principles of non-discrimination established by the international treaties in force between Switzerland and the European Union.

Useful tools for your case

To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.

Key points

The motion explicitly asks the State Council to follow up on the previous initiative regarding the suspension or partial reversal of the allocation of tax on the frontaliers to Italy. This action is based on the assumption that, in the event of a violation of international agreements by Italy, Switzerland should review the transfer methods of fiscal resources. The procedure requires intense diplomatic and institutional activity, which should initially involve the Confederation to officially contest the incompatibility profiles of the measure.

Check tax deadlines for cross-border workers: returns, Swiss declarations, rebates — all dates in one interactive calendar.

Source: cdt.ch

Frequently Asked Questions

What are the main disputed incompatibility profiles?: The motion challenges the 'health tax' on two main grounds: the possible violation of Article 9 of the Borderers Agreement and the incompatibility with the Agreement on the Free Movement of Persons (FTA). It is argued that the tax specifically penalises frontier workers, reducing their net income and introducing a restriction on the free movement of labour prohibited by the case law of the Court of Justice of the EU.
What does the motion ask of the Council of State?: The motion asks to suspend, in whole or in part, the reimbursement to Italy of the tax at source levied on border workers. In addition, it requires activating the federal authorities to assess the legitimacy of the tax, promoting diplomatic initiatives with Italy to challenge the measure and regularly informing the Grand Council about the results of the legal checks.
Why is the tax called a selective incentive?: According to the parliamentary document, the Italian implementing decree allocates part of the revenue from the tax to increase the accessory treatment of medical and nursing staff in border areas. This mechanism is interpreted as an economic incentive that, combined with the penalisation of frontier workers, aims to influence the cross-border labour market in favour of the Italian health system.