What does' totalization 'mean in AVS/INPS coordination?

Totalization is the mechanism that sums the contribution periods paid in Switzerland and Italy for the purpose of retirement. Thanks to the coordination between AVS (Swiss Old Age Insurance) and INPS, each year of frontier work counts for both pension systems, avoiding missing the pensionable minimum or losing contributions due to administrative gaps.

Who is considered 'old border' and who 'new border' for 2024 taxes?

An 'old' border crossing is someone who already held a G permit before 17 July 2023: they benefit from a progressive exemption of up to €7,500 under the transitional regime 2024–2033. A 'new' border crossing has obtained a permit after 17 July 2023 and benefits from an immediate exemption of €10,000, which is more advantageous, with no transitional regime.

Where is the source tax levied for a G border crossing?

The income tax at source is levied exclusively in Switzerland (federal and cantonal). Italy does not apply any direct withholding tax. However, the frontier worker must declare the Swiss income in the Italian form 730 and is entitled to a tax credit (CE Framework) to recover the Swiss tax paid, within the limit of the IRPEF due in Italy.

What are the rates of AVS contributions in Switzerland for a border employee?

The AVS/AI/IPG contribution is 5.3% borne by the employee. Added: unemployment (AD) and accidents (AC) at 1.1% up to CHF 148,200 of income, accident insurance (LAINF) between 0.7% and 1.5%, and second pillar (LPP) between 7% and 18% depending on age (minimum from 25 years).

Can I choose whether to join a Swiss LAMal or stay in the Italian CMI?

Yes. Border workers with a G permit have the right of option: they can enroll in a Swiss LAMal (with adult deductibles CHF 300-2,500) or stay in Italian medical coverage (CMI). In both cases, the AVS/INPS coordination ensures that pension contributions are correctly recorded in Switzerland.

Border pension 2026: AVS and INPS (cross-border guide)

Di Laura Bianchi · Published on 20 August 2026

Lake Lugano with Ticino mountains, symbol of the Ticino-Italy cross-border region.

AVS-INPS coordination from 2024: totalisation of contributions, tax at source and refunds. Excess €10,000 for new frontier workers.

Context

In a nutshell

New Frontier Agreement from 1 January 2024 protects against double taxation
AVS and INPS coordinate: totalisation of contributions guaranteed
Tax at source only in Switzerland; tax credit in Italy
Excess €10,000 for new frontier workers (€7,500 for old until 2033)

Key facts

What: AVS/INPS coordination between Switzerland and Italy
When: Effective January 1, 2024
Where: Canton of Ticino and the Italian-Swiss border
Who: Frontier workers with G permit
Law: New Frontier Agreement 23 December 2020, Law 83 of 13 June 2023
Tax: Withheld only in Switzerland (5.3% AVS/AI/IPG + contributions)
Credit Italy: CE Framework of 730 for refreshments

On 1 January 2024, the New Frontier Agreement between Switzerland and Italy entered into force, signed on 23 December 2020 and ratified by the Italian Parliament with Law 83 of 13 June 2023. This reform directly affects the pension of border workers with G permits who work in Ticino and reside in Italy.

The main novelty concerns the coordination between the Swiss pension system (AVS, Old Age Insurance) and the Italian one (INPS, National Institute of Social Security). Before 2024, frontier workers risked losing contribution periods if not managed carefully; today totalization is guaranteed by a bilateral convention that avoids duplication and gaps.

The tax at source on income from work is only withdrawn in

Operational details

Concrete taxation: tax at source and refunds

Border workers with a G permit pay in a Swiss paycheck an AVS/AI/IPG contribution of 5.3% (borne by the employee) and an unemployment (AD) and accident (AC) contribution of 1.1% up to a maximum of CHF 148,200 in annual income. To these is added the accident insurance (LAINF) between 0.7% and 1.5%, and the contribution to the second pillar (LPP) between 7% and 18% depending on age (minimum from 25 years).

The federal and cantonal source tax is levied exclusively in Switzerland. Italy does not apply any local withholding tax on border income. The Swiss border worker, however, must declare foreign income (from work in Switzerland) in the Italian model 730.

This is where the tax credit comes in (EC framework of 730). The border worker recovers the Swiss tax paid within the limit of the Italian personal income tax due. The Italian IRPEF rates are: 23% up to €28,000; 35% from €28,001 to €50,000; 43% over €50,000.

Scenario: 'old' vs' new 'border crossings

A border crosser already holding a G permit on 17 July 2023 (old) can benefit from an exemption of up to €7,500 of foreign income for 2024, with progression until 2033 (transitional regime). This means that the first €7,500 of working income in Switzerland is not taxable in Italy in thatyear, reducing the IRPEF due.

A frontier worker who obtained the G permit after 17 July 2023 (new) benefits from an exemption of

Key points

What to do concretely: permit, declaration, tools

If you are a border worker who resides in Italy and works in Ticino, your fiscal and social security situation is based on three pillars: the G permit, the income tax declaration, and the health insurance.

The G permit is the document that regulates your right to work in Switzerland as a foreign resident. From January 1, 2024, the AVS/INPS coordination is automatic: you do not need to request anything special. However, the G permit involves a significant choice: the health insurance (LAMal).

G border workers have the right to opt: they can enroll in a Swiss health insurance (LAMal) or remain in the CMI (Italian medical coverage). LAMal provides franchises for adults between CHF 300 and CHF 2,500 depending on the chosen model. If you have chosen Swiss LAMal, the contribution is withheld in the pay slip and coordinated with INPS to avoid double payments.

If you have opted for Italian CMI, your social security position in Switzerland remains active (AVS), but ordinary medical coverage is managed by Italy. In both cases, the AVS/INPS coordination ensures that your pension contributions are registered consistently.

Income tax declaration: step-by-step

1. Collect the Swiss pay slip: Ask your employer (or download from the company portal) the annual summary of: gross income, Swiss taxes withheld, AVS/AI/IPG contributions, LPP contributions, LAINF contributions.

2. Fill out the Italian model 730: In the C section, insert the dependent work income in Switzerland. Declare the converted gross amount in euros.

3. Apply the franchise: If you are a new border worker (permit after 7/17/2023), the first €10,000 is exempt from Italian taxation. If you are an old border worker, apply the progressive exemption for the current year.

…

Frequently Asked Questions

What does' totalization 'mean in AVS/INPS coordination?: Totalization is the mechanism that sums the contribution periods paid in Switzerland and Italy for the purpose of retirement. Thanks to the coordination between AVS (Swiss Old Age Insurance) and INPS, each year of frontier work counts for both pension systems, avoiding missing the pensionable minimum or losing contributions due to administrative gaps.
Who is considered 'old border' and who 'new border' for 2024 taxes?: An 'old' border crossing is someone who already held a G permit before 17 July 2023: they benefit from a progressive exemption of up to €7,500 under the transitional regime 2024–2033. A 'new' border crossing has obtained a permit after 17 July 2023 and benefits from an immediate exemption of €10,000, which is more advantageous, with no transitional regime.
Where is the source tax levied for a G border crossing?: The income tax at source is levied exclusively in Switzerland (federal and cantonal). Italy does not apply any direct withholding tax. However, the frontier worker must declare the Swiss income in the Italian form 730 and is entitled to a tax credit (CE Framework) to recover the Swiss tax paid, within the limit of the IRPEF due in Italy.
What are the rates of AVS contributions in Switzerland for a border employee?: The AVS/AI/IPG contribution is 5.3% borne by the employee. Added: unemployment (AD) and accidents (AC) at 1.1% up to CHF 148,200 of income, accident insurance (LAINF) between 0.7% and 1.5%, and second pillar (LPP) between 7% and 18% depending on age (minimum from 25 years).
Can I choose whether to join a Swiss LAMal or stay in the Italian CMI?: Yes. Border workers with a G permit have the right of option: they can enroll in a Swiss LAMal (with adult deductibles CHF 300-2,500) or stay in Italian medical coverage (CMI). In both cases, the AVS/INPS coordination ensures that pension contributions are correctly recorded in Switzerland.