How is the income of a new border worker resident in Laveno-Mombello taxed?

A new frontier worker hired from 17 July 2023 is taxed at source in Switzerland and must file a tax return in Italy. The Italian legal system recognizes an exemption of 10,000 euros on Swiss income and applies the IRPEF rates on the taxable residual, granting the tax credit for what has already been withdrawn in Switzerland to avoid double taxation.

What mandatory social security contributions are paid on a paycheck in Switzerland?

5.3% for AVS/AI/IPG employees, 1.1% for unemployment insurance up to CHF 148,200 per year, the LAINF between 0.7% and 1.5% and the second LPP pillar with scalar rates from 7% to 18% from 25 years of age are retained from the Swiss payroll.

How does LAMal health coverage work for those who reside on Lake Maggiore?

The border crossing holder with a G permit exercises the right of option by choosing between the Swiss health regime LAMal and the Italian health service. With LAMal you take out compulsory Swiss insurance with an annual deductible of between CHF 300 and CHF 2500 for adults.

Frontier workers in Laveno-Mombello: driving and tax in Ticino (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 12 September 2026

View of Lake Maggiore near Laveno-Mombello for cross-border workers in Ticino

Living in Laveno-Mombello and working in Ticino: connections, taxes at source, deductibles and pension for frontier workers.

Context

In Brief

Laveno-Mombello in the province of Varese offers connections to Canton Ticino.
The New Agreement regulates taxation and treatments between Italy and Switzerland.
Tax exemption threshold of 10,000 euros for new cross-border workers and 7,500 euros for existing ones.

Key Facts

What: Commuting and residency guide for cross-border workers on Lake Maggiore
When: New Agreement in force since January 1, 2024
Where: Laveno-Mombello (Varese) and Canton Ticino
Who: Workers with a G permit and Swiss employers
Amount: IRPEF exemption threshold up to 10,000 euros for new cross-border workers

The municipality of Laveno-Mombello, located on the Lombard shore of Lake Maggiore in the province of Varese, represents a residential hub for those working across the border. Those who choose this location to establish their home must carefully consider the distances in kilometers and the logistical variables linking the province of Varese with the main industrial and service hubs of Canton Ticino, such as Bellinzona, Locarno, and Lugano. The commute to the road border crossings or rail connections requires careful planning to manage daily travel times, influenced by both lakeside traffic and the main roads leading toward the border customs.

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Operational details

Tax Regime Between Switzerland and Italy

The regulatory framework for individuals residing in Laveno-Mombello and working in the Swiss Confederation is defined by the New Agreement signed on December 23, 2020, which formally entered into force on January 1, 2024, following Italian ratification through Law 83 of June 13, 2023. Bilateral tax relations are grounded in the Double Taxation Convention signed on December 9, 1976, taking into account that Switzerland is neither a member of the European Union nor of the European Economic Area.

Withholding Tax and IRPEF Allowances

Withholding tax on employment income is deducted directly by the Swiss employer according to the tax rates applicable in the canton of employment. The Italian tax system does not apply a duplicate withholding on the payslip: to prevent double taxation, Italy grants a foreign tax credit to be claimed under section CE of the tax return. The regulations distinguish between two categories of taxpayers:

Workers classified as 'old cross-border commuters', who held this status prior to July 17, 2023, benefit from a transitional regime valid from 2024 to 2033 with an exempt threshold of 7,500 euros on Swiss income, alongside the tax reimbursement mechanism (ristorni) paid to border municipalities.
Workers classified as 'new cross-border commuters' are subject to concurrent taxation in Italy but are entitled to an IRPEF tax-free allowance of 10,000 euros.

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Key points

Social security, healthcare coverage, and practical management

Alongside tax regulations, cross-border commuters working in Switzerland must fulfill Swiss social security and pension contribution obligations. Mandatory statutory deductions regulated at the federal level apply to monthly earnings. These include the employee's share of the first pillar (AVS/AI/IPG) equal to 5.3%, the unemployment insurance contribution (AD/AC) of 1.1% up to an annual ceiling of CHF 148,200, non-occupational accident insurance (LAINF) with rates ranging from 0.7% to 1.5%, and the second pillar occupational pension (LPP), which entails rates between 7% and 18% depending on the age bracket starting at age 25.

Health insurance and the right of option

Regarding healthcare protection, workers holding a G permit have the right of option between the Swiss statutory health insurance system (LAMal) and enrollment in the Italian National Health Service (SSN) through INPS. By choosing LAMal, cross-border workers take out a private insurance policy with annual adult deductibles ranging between CHF 300 and CHF 2,500, benefiting from targeted medical coverage. This decision is binding and directly affects the household's monthly fixed expenses.

Evaluating whether to move to or remain in Laveno-Mombello therefore requires balancing rental and real estate costs on the eastern shore of Lake Maggiore with commuting expenses, social security contributions, and applicable tax brackets upon returning home. Before signing a contract or completing a change of residence, check the net economic impact on your paycheck using the salary calculator.

Frequently Asked Questions

How is the income of a new border worker resident in Laveno-Mombello taxed?: A new frontier worker hired from 17 July 2023 is taxed at source in Switzerland and must file a tax return in Italy. The Italian legal system recognizes an exemption of 10,000 euros on Swiss income and applies the IRPEF rates on the taxable residual, granting the tax credit for what has already been withdrawn in Switzerland to avoid double taxation.
What mandatory social security contributions are paid on a paycheck in Switzerland?: 5.3% for AVS/AI/IPG employees, 1.1% for unemployment insurance up to CHF 148,200 per year, the LAINF between 0.7% and 1.5% and the second LPP pillar with scalar rates from 7% to 18% from 25 years of age are retained from the Swiss payroll.
How does LAMal health coverage work for those who reside on Lake Maggiore?: The border crossing holder with a G permit exercises the right of option by choosing between the Swiss health regime LAMal and the Italian health service. With LAMal you take out compulsory Swiss insurance with an annual deductible of between CHF 300 and CHF 2500 for adults.