If I work remotely from abroad for a month, do I also have to pay taxes in the third country?

No. The source tax remains in Switzerland because the employer is Swiss. The third country is not entitled to taxation on employment income if the relationship is with a foreign employer. Italy avoids double taxation through the tax credit in the EC framework of declaration 730. The Italy-Switzerland Convention of 9 December 1976 clarifies this principle.

Do I lose AVS and LPP rights if I work abroad during the holidays?

No. AVS and LPP continue to mature and the employer continues to pay contributions (AVS/AI/IPG 5.3% employee, LPP 7–18% by age group). The only exception: if the remote holiday exceeds 90 consecutive days, a tax residence change issue regarding border crossing status may arise. For normal holidays (up to 6 weeks) there is no risk.

Does LAMal cover injuries while working remotely from abroad?

Yes. LAINF (Occupational Accident Insurance) covers accidents while working as an employee wherever you are. If border crossing G, keep the right of option LAMal with excess CHF 300–2500 per year. Stay insured in Switzerland even if you work from Spain for 3 weeks. The employer remains responsible for coverage without the need for additional communications.

What if my employer doesn't know I'm working abroad during the holiday?

The contract may be breached. Many Swiss employers require prior approval for remote work across borders, especially if it is prolonged. If the employer finds out later, they may dispute the behavior. In addition, in the event of an accident during unauthorized work, the responsibility may fall on the employee. Always notify to avoid disputes.

With the new 2024 border agreement, do I still want to stay on the border?

The new agreement (in force from 1 January 2024) improves the rights: deductible €7,500 for frontier workers before 17/7/2023 (transitional regime 2024–2033) or €10,000 for new frontier workers. Reduces administrative burden and simplifies reporting. For the vast majority of Ticino-Italy border workers, the tax and social coverage advantages (AVS/LPP/LAMal Swiss) outweigh the costs, even considering occasional remote work.

Remote border crossing: taxes and fees from the holiday (cross-border guide)

Di Marco Ferrari · Published on 4 September 2026

Frontierworker's desk with laptop and documents, professional home office setup overlooking Lugano valley

Do you work remotely from abroad? Taxation remains in Switzerland. Tax at source, AVS, LAMal: what changes with the new 2024 border agreement.

Context

In brief

Withholding tax remains in Switzerland, does not change if you work from abroad
AVS/LPP/LAMal remain active for cross-border workers with a Swiss employer
New agreement 2024: threshold €7,500 (old) or €10,000 (new cross-border workers)
Notify employer: contractual and insurance obligation

Key facts

What: Remote work from a third country for cross-border workers with a Swiss employer
When: Rules apply from 1 January 2024 (new agreement)
Where: Any country outside Switzerland and Italy
Who: Cross-border workers G (weekly cross-border workers)
Taxation: Swiss withholding tax 5.3% (AVS/AI/IPG employee)
Threshold: €7,500 (cross-border workers pre-17/7/2023) or €10,000 (new)
Insurance: LAMal mandatory, CHF 300–2500 annual deductible

A cross-border worker who spends three weeks in Portugal continuing to work remotely for their Ticino-based employer faces a recurring question: how is the income taxed? Which country has the right to tax it?

The answer is clear: the withholding tax remains in Switzerland. The new physical place of work (the third country) does not have the right to tax the employment income because the relationship remains subordinate to a Swiss employer. The legal basis is the Convention between Italy and Switzerland of 9 December 1976 on double taxation and the New Cross-Border Workers Agreement which came into force on 1 January 2024 (Law 83 of 13 June 2023 for Italy). These instruments clarify that taxation follows the location of the employer, not the location of the employee at the time of work.

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Operational details

AVS, LPP and LAMal during remote work

While withholding tax follows the employer's location, pension and insurance rights require special attention. AVS (old-age and survivors' insurance) and AI (disability insurance) continue to accrue contribution rights, regardless of where the cross-border worker is during remote work.

The LPP (occupational pension scheme) continues regularly: if the employer has a collective plan (as in almost all Swiss companies), contributions follow the age bracket table of the cross-border worker. If the cross-border worker turns 25 during a work break, LPP enrollment kicks in and the employer starts contributing the purpose quota (7–18% of gross income).

LAMal (health insurance) is the most delicate point. Category G cross-border workers (weekly cross-border workers, representing almost all Ticino-Italy commuters) have the option to remain insured in Switzerland or switch to the Italian INPS system. If they stay in Switzerland, they maintain the annual deductible between CHF 300 and CHF 2500 for adults. During remote work, LAMal remains valid.

A practical issue: if the cross-border worker stays more than 90 days in a third country, they might lose their weekly cross-border status for that tax declaration, with consequences for deductibles and residence rights. For normal vacations (up to 4–6 weeks), there are no risks.

Accident and liability coverage

LAINF (Law on Accident Insurance) covers work-related accidents, wherever the cross-border worker is. If a fall down the stairs during home office in Portugal results in an injury, Swiss LAINF responds regularly. The employer remains responsible for keeping LAINF coverage active, without the need for additional communications for remote work.

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Key points

Practical procedure: the 5 steps

If you are planning a remote vacation, following these steps can reduce the risks of misunderstandings or contractual violations.

1. Read the employment contract. Check if it contains clauses on working from abroad, limits on days/months of remote work abroad, or geographical exclusions. Many Swiss contracts allow up to 2–4 weeks without authorization; beyond that, HR approval is required.

2. Notify your employer at least 2–3 weeks in advance. Send a formal email to the HR manager indicating: the vacation period, the country of work, and your contact details during regular working hours. An example: "From August 12 to 26, I will be on vacation in Barcelona, but I will continue to work remotely. I will remain reachable via email."

3. Verify VPN coverage and data confidentiality. Your employer may require an encrypted connection to protect company data. Set up a company or personal VPN before departure.

4. Do not change your address of residence. If the cross-border commuter intends to actually change their residence from Ticino to a third country, the cross-border commuter status changes radically and may lose AVS and VAT rights. For vacations, remain registered at your Ticino address.

5. Optional communication to the Tax Agency. If the remote vacation exceeds 4 weeks, consider notifying via PEC to your CAF or the Tax Agency that you will continue to work remotely. This is not mandatory for short vacations, but it avoids surprises in case of subsequent verification.

Calculate your net income and check refunds

To evaluate the precise tax impact of your situation, use the cross-border tax calculator. Enter your gross income, start date as a cross-border commuter, and you will get an estimate of the net income after AVS/LPP/LAMal.

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Frequently Asked Questions

If I work remotely from abroad for a month, do I also have to pay taxes in the third country?: No. The source tax remains in Switzerland because the employer is Swiss. The third country is not entitled to taxation on employment income if the relationship is with a foreign employer. Italy avoids double taxation through the tax credit in the EC framework of declaration 730. The Italy-Switzerland Convention of 9 December 1976 clarifies this principle.
Do I lose AVS and LPP rights if I work abroad during the holidays?: No. AVS and LPP continue to mature and the employer continues to pay contributions (AVS/AI/IPG 5.3% employee, LPP 7–18% by age group). The only exception: if the remote holiday exceeds 90 consecutive days, a tax residence change issue regarding border crossing status may arise. For normal holidays (up to 6 weeks) there is no risk.
Does LAMal cover injuries while working remotely from abroad?: Yes. LAINF (Occupational Accident Insurance) covers accidents while working as an employee wherever you are. If border crossing G, keep the right of option LAMal with excess CHF 300–2500 per year. Stay insured in Switzerland even if you work from Spain for 3 weeks. The employer remains responsible for coverage without the need for additional communications.
What if my employer doesn't know I'm working abroad during the holiday?: The contract may be breached. Many Swiss employers require prior approval for remote work across borders, especially if it is prolonged. If the employer finds out later, they may dispute the behavior. In addition, in the event of an accident during unauthorized work, the responsibility may fall on the employee. Always notify to avoid disputes.
With the new 2024 border agreement, do I still want to stay on the border?: The new agreement (in force from 1 January 2024) improves the rights: deductible €7,500 for frontier workers before 17/7/2023 (transitional regime 2024–2033) or €10,000 for new frontier workers. Reduces administrative burden and simplifies reporting. For the vast majority of Ticino-Italy border workers, the tax and social coverage advantages (AVS/LPP/LAMal Swiss) outweigh the costs, even considering occasional remote work.