Swiss 3rd Pillar: Advantages 2026 in the Canton of St. Gallen (cross-border guide)

Context

In a nutshell

• The New Frontier Agreement was signed on 23 December 2020 and entered into force on 1 January 2024.
• The Italy-Switzerland double taxation agreement was signed on 9 December 1976.
• The new frontier workers have a deductible of €10,000.
• Switzerland is not an EU/EEA member.

Swiss 3rd Pillar: Advantages 2026 in the Canton of St. Gallen

On 23 December 2020, the Frontier Agreement was signed, marking an important step forward for cooperation between Switzerland and Italy. This agreement entered into force on January 1, 2024, bringing significant benefits for border workers, i.e. those who reside in one of the two nations and work in the neighboring border.

The Italy-Switzerland double taxation agreement, signed on 9 December 1976, was a further important step in reducing trade and tax barriers between the two countries. This agreement reduced taxes and fees for entrepreneurs and businesses operating in both countries.

Benefits for frontier workers

The new frontier workers benefit from a deductible of €10,000, which reduces the tax burden and allows them to save money. For example, a frontier earning €50,000 per year could save €5,000 in taxes, thanks to this deductible.

Concrete examples

A concrete example can be seen in the Canton of St. Gallen, where many Italian workers reside and work. According to data from the statistical office of the

Operational details

Key facts

• What: Swiss 3rd Pillar
• When: 2026
• Where: Canton of St. Gallen
• Who: Frontiersmen
• Amount: €10,000 (deductible for new frontier workers)

Switzerland's Third Pillar 3a is an important measure to attract and integrate frontier workers into the social and economic fabric of the country. In the Canton of St. Gallen, this project is particularly relevant, thanks to its strategic position and its industrial excellence.

Advantages 2026 in the Canton of St. Gallen

The Swiss 3rd Pillar will offer border workers in the Canton of St. Gallen a number of significant advantages in 2026. These include:

• Deductible of €10,000: as mentioned above, new frontier workers will benefit from a deductible of €10,000, which they can use to pay taxes, duties and integration expenses in the country.
• Social integration: the project also provides for a careful social integration of border workers, with language, culture and vocational training courses to help them integrate into the social fabric of the Canton.
• Economic support: in addition, the Swiss Third Pillar provides economic support to border workers, through the creation of jobs and employment opportunities.

Concrete examples

For example, in 2026, a frontier worker who moves to the Canton of St. Gallen could benefit from the deductible of €10,000 to pay the registration fees of his car, €2,500, and for

Useful planning tools

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

Key points

Swiss 3rd Pillar: Advantages 2026 in the Canton of St. Gallen

Switzerland's third pillar 3a offers tax advantages to border crossers. The Italy-Switzerland double taxation agreement was signed on 9 December 1976. The new frontier workers have a deductible of €10,000.

Switzerland is known for its very favourable tax policy, which attracts many frontier workers and foreign investors. The third pillar 3a is an agreement between Switzerland and Italy that provides for the non-imposition of income taxes for border workers who reside in Switzerland and work in Italy. This arrangement is very advantageous for frontier workers residing in the Canton of St. Gallen, which is one of the most popular cantons among frontier workers.

To be considered border workers, you must reside in Switzerland for at least 90 days a year and work in Italy for at least 183 days a year. In addition, it is necessary to prove that you have an income from work in Italy higher than that from work in Switzerland. Border crossers can benefit from a €10,000 deductible, but they can also benefit from a €20,000 deductible if they reside in Switzerland for at least 183 days per year.

The Italy-Switzerland Double Taxation Convention was signed on 9 December 1976 and entered into force on 1 January 1977. This agreement provides for the non-imposition of income taxes for border workers who reside in Switzerland and work in Italy. Frontier workers can benefit from a deductible

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