As a border worker living in Cambiasca, where do I pay taxes?

You pay the tax at source to the Swiss employer (Ticino), on the gross of the paycheck. Italy avoids double taxation by recognising a tax credit in declaration 730 (EC framework). You don't pay twice: Switzerland withholds the tax, and Italy recognizes it. The result is that you pay taxes as a Swiss worker residing in Switzerland, but without having to change your residence.

Is the G Permit the same as the residence permit? Which do I choose?

No. The G Permit is specific for border workers: it allows you to work in Switzerland without residing there. Permit B is for those who want to reside in Switzerland. You live in Cambiasca (Italy), so Permit G is the right one for you. It is free, valid for 1 year and automatically renewable if you continue the work.

Is my exemption deductible €7,500 or €10,000? How do I verify?

If you became a border worker before 17 July 2023, you are entitled to €7,500 for 2024-2033. If after that date, it is €10,000. Check your recruitment documents or contact the Revenue Agency to verify the official date of commencement of cross-border activities in their system.

Do I need to register for the Swiss AVS or the Italian INPS?

The Swiss AVS is mandatory for all employees in Switzerland, including frontier workers. It will be paid automatically by the employer at 5.3% of gross. You are not registered with the Italian INPS as an employee, but you will receive the AVS pension calculated on your Swiss contributions when you reach retirement age.

Should you choose Swiss health insurance (LAMal) or keep the Italian one?

It depends on the premiums, the deductible (CHF 300–2500 in Switzerland) and the coverage. If you work in Switzerland, you can choose the LAMal (right of option for border workers category G). Compare the annual costs with your Italian insurance: sometimes LAMal is suitable for low premiums, sometimes Italian is better.

Living in Cambiasca, working in Ticino: frontier guide (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 1 September 2026

Aerial view of Lugano and Lake Ceresio, Swiss-Italian border landscape for Ticino frontier workers.

Taxation, G permit, costs and concrete procedures for border workers living in Cambiasca and working in the Canton of Ticino. What you need to know.

Context

In brief

New Cross-Border Agreement effective from 1 January 2024: withholding tax deducted ONLY in Switzerland
Italian tax refunds through tax credit (section CE of the 730 form): no double taxation
Exemption €7,500 (old cross-border workers 2024–2033) or €10,000 (new); AVS/AI 5.3% for employees
Permit G required; LAMal optional with deductible CHF 300–2500 for adults

Key facts

Who: Cross-border workers residing in Italy, employed in the Canton of Ticino
Permit: Permit G according to the Convention of 9 December 1976 and the New Agreement of 23/12/2020
Effective date: 1 January 2024 (Italian ratification: Law 83 of 13/6/2023)
Tax: Deducted in Switzerland; Italian tax credit in section CE
Exemption: €7,500 (cross-border workers since 17/7/2023) or €10,000 (new); transitional period 2024–2033
Contributions: AVS/AI 5.3%, AD/AC 1.1%, LAINF 0.7–1.5%, LPP 7–18%
Insurance: LAMal optional; deductible for adults CHF 300–2500

2024 Agreement: What changes for cross-border workers

The New Cross-Border Agreement, signed on 23 December 2020 and effective from 1 January 2024, introduces verified rules on taxation. The Italian part (Law 83 of 13/6/2023) and the Swiss part have defined the methods of withholding tax collection. The Italian-Swiss Convention on double taxation (9 December 1976) remains the underlying legal framework. For those living in Cambiasca and working in Ticino, the change is concrete: the tax on the paycheck is withheld directly in Switzerland by the employer. Italy does not levy further taxes but recognizes a tax credit in section CE of the 730 declaration, thus avoiding double taxation.

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Operational details

Withholding tax: how NOT to end up in double taxation

A cross-border worker living in Cambiasca receives their pay slip from their Ticino-based employer. The Swiss withholding tax has already been applied to this pay slip according to cantonal and federal tables. This tax is not collected simultaneously in Italy. When the cross-border worker files their 730 tax return in Italy (by June of the following year), they report their foreign income in the CE section. The Italian Revenue Agency recognizes the tax credit (i.e., the fact that Switzerland has already deducted it), thus avoiding double taxation. If the Swiss tax is higher than the Italian tax, the cross-border worker receives a refund; if it is lower, they pay the difference.

Swiss tax rates vary at the federal and cantonal levels, but the cross-border worker does not choose the amount: it is applied by the Ticino-based employer according to the current AFC/ESTV tables. The result is that the net monthly income of a cross-border worker living in Cambiasca may be lower than that of a worker residing in Switzerland, with the same gross income, because the Ticino cantonal withholding is often higher than the national average.

Old and new cross-border workers: different regimes until 2033

Were you a cross-border worker before July 17, 2023? You benefit from a transitional regime (2024–2033) with an exemption of €7,500 on your taxable income in Italy. Did you become a cross-border worker after that date? Your exemption is €10,000. The difference is measured, but significant:

Old cross-border worker: With a gross Swiss income of €50,000, the €7,500 exemption reduces the Italian taxable base to €42,500.
New cross-border worker: Same situation, but with €10,000 exempt = Italian taxable base €40,000.

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Key points

First step: request the Permesso G

To work in Ticino and live in Cambiasca, you need a valid Permesso G. The permit is issued by the cantonal migration office of Ticino (SEM - State Secretariat for Migration at the Swiss level; at the cantonal level, it is the Immigration Office of the Canton of Ticino). The request usually goes through the employer: they notify the Swiss authorities of the hiring, who then initiate the procedure. You, as an Italian employee residing in Italy, provide the required documents (identity, employment contract, certificate of no criminal record). The Permesso G is free and has limited validity (usually 1 year, renewable).

The Italian-Swiss Convention of December 9, 1976 recognizes the right of citizens to work across the border. Your right to work in Ticino is protected by this legal instrument. However, from January 1, 2024, the new regime of the Cross-Border Workers Agreement modifies the tax obligations (as described in the previous paragraphs), not the permit obligations. The Permesso G remains the main instrument for cross-border work.

Pay slip, 730 declaration and tax credit

Each month you will receive the pay slip with the withholding tax deducted. Keep all original pay slips (paper or digital). During the fiscal year, Switzerland (through the employer or the AFC/ESTV) will communicate to your Revenue Agency the amount of gross income and withheld tax. By June of the following year, you submit the 730 model online (through the tax agency, accountant, or CAF). In the CE section of the 730, you report the foreign income and tax paid in Switzerland. The Agency recognizes the Swiss tax credit and calculates the Italian tax due. The refund or balance is managed as for any ordinary 730 declaration.

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Frequently Asked Questions

As a border worker living in Cambiasca, where do I pay taxes?: You pay the tax at source to the Swiss employer (Ticino), on the gross of the paycheck. Italy avoids double taxation by recognising a tax credit in declaration 730 (EC framework). You don't pay twice: Switzerland withholds the tax, and Italy recognizes it. The result is that you pay taxes as a Swiss worker residing in Switzerland, but without having to change your residence.
Is the G Permit the same as the residence permit? Which do I choose?: No. The G Permit is specific for border workers: it allows you to work in Switzerland without residing there. Permit B is for those who want to reside in Switzerland. You live in Cambiasca (Italy), so Permit G is the right one for you. It is free, valid for 1 year and automatically renewable if you continue the work.
Is my exemption deductible €7,500 or €10,000? How do I verify?: If you became a border worker before 17 July 2023, you are entitled to €7,500 for 2024-2033. If after that date, it is €10,000. Check your recruitment documents or contact the Revenue Agency to verify the official date of commencement of cross-border activities in their system.
Do I need to register for the Swiss AVS or the Italian INPS?: The Swiss AVS is mandatory for all employees in Switzerland, including frontier workers. It will be paid automatically by the employer at 5.3% of gross. You are not registered with the Italian INPS as an employee, but you will receive the AVS pension calculated on your Swiss contributions when you reach retirement age.
Should you choose Swiss health insurance (LAMal) or keep the Italian one?: It depends on the premiums, the deductible (CHF 300–2500 in Switzerland) and the coverage. If you work in Switzerland, you can choose the LAMal (right of option for border workers category G). Compare the annual costs with your Italian insurance: sometimes LAMal is suitable for low premiums, sometimes Italian is better.