Is the AVS pension also taxed in Italy?

No, in case of economic double taxation: the tax at source is withheld only in Switzerland and Italy recognizes a tax credit in the EC framework of model 730. This rule is consistent with the Double Taxation Convention of 9 December 1976 and the New Agreement in force from 1 January 2024.

How does AVS-INPS totalization work for a border crossing with children?

The AVS contribution periods in Switzerland can be added to those INPS in Italy through the bilateral social security agreement, distinct from the 1976 Tax Convention. Switzerland is not an EU/EEA member, so European regulations do not apply, but aggregation remains possible on a bilateral basis.

What are the Swiss social security rates in 2026?

The employee pays AVS/AI/IPG at 5.3%, AD/AC at 1.1% (capped at CHF 148,200), LAINF between 0.7% and 1.5% and LPP between 7% and 18% by 25 years of age, depending on the age group. These deductions appear on the Swiss payroll and feed the first and second pillars.

Should the LPP years be redeemed before retirement?

The LPP redemption reduces the taxable capital at retirement and increases the annuity. Convenience depends on age, salary, and family situation. The calculation is made with the pension calculator, taking into account that the advance withdrawal is taxed as a capital benefit.

Are the children of the border worker entitled to AVS or Italian family income?

AVS child annuities are paid in Switzerland to the AVS/AI annuity holder within certain age and income limits of the child. In Italy, family allowances and deductions for dependent children are due if the family income falls within the expected IRPEF thresholds. The two services are not excluded, but must be requested separately from the competent bodies.

Border boarding house 2026 with children: AVS-INPS guide (cross-border guide)

Di Laura Bianchi · Published on 31 August 2026

Cross-border commuters walking through Bellinzona station at dawn

New Agreement in force from 1 January 2024, AVS at 5.3% and coordination with INPS: what changes for the border family with children in 2026.

Context

In a nutshell

New Frontier Agreement in force from 1 January 2024 (not 2026)
AVS/AI/IPG: 5.3% to be paid by the employee on the Swiss payroll
Withholding tax withheld only in Switzerland, tax credit in 730
Old border guards: exemption €7,500; new: deductible €10,000
AVS-INPS coordination separate from the Tax Convention of 9 December 1976

Key facts

What: Italian-Swiss social security agreement distinct from the tax convention
When: New Agreement from 1 January 2024; transitional regime 2024–2033
Where: Canton of Ticino and border Italy (Chiasso, Brogeda, Gaggiolo crossings)
Who: AFC/ESTV (tax at source), INPS, Revenue Agency
Amount: AVS/AI/IPG 5.3%; AD 1.1% up to CHF 148,200; LPP 7–18% by age group
When signed: New Agreement 23 December 2020; Italian ratification Law 83 of 13 June 2023

The social security coordination between the Swiss pension AVS and the Italian pension INPS follows its own rules, different from those of taxation. The source reiterates a point often overlooked by border workers' families: the Convention against Double Taxation between Italy and Switzerland, signed on 9 December 1976, governs exclusively the taxation of income, not the aggregation of insurance periods. The Social Security Agreement and the Community coordination regulations that Switzerland applies with its own legislation apply to pensions, since the Confederation is not a member

Operational details

Old vs new border guards: two regimes compared

The difference between those who were already border workers before 17 July 2023 and those who started afterwards does not directly concern retirement, but affects the calculation of taxable income and therefore the ability to plan the LPP redemption or payment in the third pillar 3a. Old frontier workers enjoy an exemption of up to €7,500, with a ten-year transitional regime 2024–2033, while new ones benefit from a higher deductible, equal to €10,000, without similar protection.

A hypothetical worker with two dependent children, employed in a company in Lugano with a gross annual salary of CHF 90,000, pays about CHF 4,770 of AVS/AI/IPG contributions each year and about CHF 990 of AD/AC. If you wish to total the periods with the INPS to obtain the Italian pension, you must submit a totalisation application to the Italian social security institution, attaching the insurance account statement issued by the Swiss AVS compensation fund. The fact that Switzerland is not an EU/EEA member does not exclude bilateral aggregation, but imposes compliance with the conditions provided for by the Italian-Swiss social security agreement.

Planning for family with children

For a border family with children, social security planning revolves around three levers: the LPP redemption (which reduces the future taxable income and lowers the source tax received on the pension), the third pillar 3a (deductible from the subject income

Useful planning tools

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

Key points

Operational checklist for 2026

The first concrete action is to request from the Ticino employer's AVS compensation fund the individual insurance account statement, which shows the contributions paid from the first day of activity. This document is essential both for a possible totalisation request to INPS, and to verify the correctness of the withholdings on the Swiss busta paga, which must expose AVS/AI/IPG to 5.3%, AD/AC to 1.1% with the cap at CHF 148,200, and the LPP quota consistent with the age group.

Second step: evaluate the LPP position at the employer's pension institution. Redeeming missing contribution years — for example for training periods of up to five years — reduces taxable pension capital at retirement and improves annuity. The calculation of the redemption premium is based on coordination with the calcolatore della pensione and on the actuarial tables of the institution.

Third step: if you want to total the periods with the INPS, submit the totalisation application to the competent INPS office, attaching the AVS account statement, identity document and tax code. The limitation period for the redemption of INPS contributions is subject to ordinary Italian rules. For the tax return, indicate the AVS income received in quadro CE del 730 to take advantage of the tax credit and avoid double taxation, since Switzerland has already withheld the tax at source.

Step Four: Verify

Compare LAMal health insurance premiums: up to CHF 200 monthly difference between providers for the same canton and deductible.

Frequently Asked Questions

Is the AVS pension also taxed in Italy?: No, in case of economic double taxation: the tax at source is withheld only in Switzerland and Italy recognizes a tax credit in the EC framework of model 730. This rule is consistent with the Double Taxation Convention of 9 December 1976 and the New Agreement in force from 1 January 2024.
How does AVS-INPS totalization work for a border crossing with children?: The AVS contribution periods in Switzerland can be added to those INPS in Italy through the bilateral social security agreement, distinct from the 1976 Tax Convention. Switzerland is not an EU/EEA member, so European regulations do not apply, but aggregation remains possible on a bilateral basis.
What are the Swiss social security rates in 2026?: The employee pays AVS/AI/IPG at 5.3%, AD/AC at 1.1% (capped at CHF 148,200), LAINF between 0.7% and 1.5% and LPP between 7% and 18% by 25 years of age, depending on the age group. These deductions appear on the Swiss payroll and feed the first and second pillars.
Should the LPP years be redeemed before retirement?: The LPP redemption reduces the taxable capital at retirement and increases the annuity. Convenience depends on age, salary, and family situation. The calculation is made with the pension calculator, taking into account that the advance withdrawal is taxed as a capital benefit.
Are the children of the border worker entitled to AVS or Italian family income?: AVS child annuities are paid in Switzerland to the AVS/AI annuity holder within certain age and income limits of the child. In Italy, family allowances and deductions for dependent children are due if the family income falls within the expected IRPEF thresholds. The two services are not excluded, but must be requested separately from the competent bodies.