Do I have to pay taxes in both Switzerland and Italy if I live in Cittiglio?

No. The income tax at source is only withheld in Switzerland for frontier workers with G permit. Italy acknowledges this payment and calculates the tax credit in the EC framework of the flat-rate declaration (form 730 or Unico). This avoids double taxation. The Italian-Swiss Convention of 9 December 1976 guarantees this right.

What is the economic advantage of the New Frontier Agreement for those who move to Cittiglio?

As of 1 January 2024, the New Agreement (ratified by Italy with Law 83 of 13 June 2023) introduces annual exemptions on Italian taxation. Old frontier workers (already before 17 July 2023) are entitled to an exemption of €7,500 in the first year, with a transitional regime until 2033. New frontier workers have access to a deductible of €10,000. This significantly reduces the Italian tax, increasing the monthly net.

If I live in Cittiglio and work in Ticino, do I have to pay Swiss AVS or Italian INPS?

Both, based on complex coordination rules. While working in Switzerland, you pay the AVS/AI contributions (5.3% to be paid by the employee) to the Swiss employer. If you reside in Italy for more than 183 days per year, you may have residual INPS contribution obligations; however, the bilateral agreement coordinates payments to avoid duplication. I recommend checking with your employer and an Italian tax expert what the exact obligations are in your case.

Can I choose Swiss health insurance (LAMal) even if I live in Cittiglio?

Yes. Border workers have the right of option on the Swiss LAMal instead of maintaining Italian coverage. Adult deductibles range from CHF 300 to CHF 2,500 depending on the canton of insurance. It's a personal choice that depends on the total cost of coverage and health needs. Compare the amounts with your current Italian insurance before deciding.

What documents do I need to register in Cittiglio as a border worker?

Typically: passport/ID card, Swiss employment contract, employer's statement, initial paycheck, previous residence certificate (from where you were residing before). Contact the Cittiglio registry office for a complete and up-to-date list. It is also essential to obtain the G permit at the Ticino canton before final registration.

Living in Cittiglio and working in Ticino: border guide (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 4 September 2026

Mendrisio border station between Ticino and Italy with cross-border commuters in transit

Cittiglio as a housing area for border workers: taxation, G permit, living costs and advantages of transferring from Varese to the Canton of Ticino.

Context

In brief

New Cross-border Agreement effective from January 1, 2024, with benefits for both old and new cross-border workers
Withholding tax deducted only in Switzerland for those working in Canton Ticino
Cittiglio offers competitive housing costs while maintaining cross-border tax benefits
Transitional regime until 2033 for those who were already cross-border workers before July 2023

Key facts

What: New bilateral agreement between Switzerland and Italy on the cross-border regime
When: Signed on December 23, 2020, effective from January 1, 2024
Where: Canton Ticino and bordering Italian municipalities in the province of Varese
Who: Cross-border workers with permit G; Italian ratification: Law 83 of June 13, 2023
Amount: Old cross-border workers exemption €7,500, new €10,000 (until 2033)

Cittiglio, a municipality in the province of Varese located near the Ticino border, represents an interesting housing choice for cross-border workers who work in Canton Ticino. From January 1, 2024, the entry into force of the New Cross-border Agreement signed on December 23, 2020, has introduced significant benefits for those who choose to work in Switzerland and reside in Italy. The withholding tax on employment income is deducted only in Switzerland, avoiding double taxation. For old cross-border workers (those who were already cross-border workers before July 17, 2023), an annual exemption of €7,500 is provided in the first year, with a transitional regime until 2033. New cross-border workers benefit from a €10,000 exemption.

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Operational details

Economic advantages of residing in Italy

Living in Cittiglio offers concrete economic advantages compared to staying in Ticino. Firstly, the cost of living for rent and services in the province of Varese is significantly lower than in urban centers in Ticino such as Lugano or Bellinzona. Although specific amounts are not available, it is known that the province of Varese offers competitive real estate opportunities compared to the Ticino market. A commuter who resides in Cittiglio maintains full access to Swiss tax benefits (taxation in Switzerland, exemption/allowance) while benefiting from Italian housing costs, creating a positive economic differential. Additionally, the general cost of living in Cittiglio (food, services, energy rates) is lower than in the Canton of Ticino, offering further monthly savings.

The move: before and after the New Agreement

Before the entry into force of the New Agreement (1 January 2024), the tax regime was less favorable. Old commuters today benefit from a transitional regime that guarantees stability until 2033, reducing regulatory uncertainty. New commuters (from 17 July 2023 onwards) immediately access the €10,000 allowance, without an adjustment period. This change makes the choice to move to Cittiglio more attractive for those starting their commuter journey. Those who were already commuters before July 2023 can choose to adhere to the transitional regime, maintaining acquired benefits, or opt for the new regime if more convenient. Law 83 of 13 June 2023 ratified the New Agreement in Italy, providing full regulatory certainty.

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Key points

Practical procedure: checklist before moving

First step: obtain the G permit from the cantonal authority of residence in Ticino. Second: register with the Cittiglio Registry Office, indicating Switzerland as the place of work. Third: inform the Swiss employer of the move, who must notify the cantonal administration of contributions (AFC/ESTV) for the adjustment of withholding tax. Fourth: register with the Italian Revenue Agency in the new place of residence and indicate the frontier worker income. Fifth: check with the employer if the additional voluntary payment for the Swiss third pillar (3a) is available, which offers federal tax deductions. Sixth: choose whether to keep the Italian health insurance (CMI) or opt for the Swiss LAMal, considering costs and coverage.

Tax deadlines to remember

Each year, the frontier worker residing in Cittiglio must comply with the Swiss tax deadlines related to the pay slip (the withholding tax is calculated monthly by the employer) and the Italian deadlines for the flat-rate declaration (usually by June of the following year, with terms set by the Revenue Agency). If the frontier worker adheres to the transitional regime (old frontier workers), they must verify the annual maintenance of the requirements for the €7,500 exemption. For those subject to additional payments (e.g., third pillar 3a), the deposit deadlines with the financial intermediary are usually set for December 31 of the relevant tax year. It is not allowed to postpone the communication to the Italian tax authorities; delay can result in administrative penalties.

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Frequently Asked Questions

Do I have to pay taxes in both Switzerland and Italy if I live in Cittiglio?: No. The income tax at source is only withheld in Switzerland for frontier workers with G permit. Italy acknowledges this payment and calculates the tax credit in the EC framework of the flat-rate declaration (form 730 or Unico). This avoids double taxation. The Italian-Swiss Convention of 9 December 1976 guarantees this right.
What is the economic advantage of the New Frontier Agreement for those who move to Cittiglio?: As of 1 January 2024, the New Agreement (ratified by Italy with Law 83 of 13 June 2023) introduces annual exemptions on Italian taxation. Old frontier workers (already before 17 July 2023) are entitled to an exemption of €7,500 in the first year, with a transitional regime until 2033. New frontier workers have access to a deductible of €10,000. This significantly reduces the Italian tax, increasing the monthly net.
If I live in Cittiglio and work in Ticino, do I have to pay Swiss AVS or Italian INPS?: Both, based on complex coordination rules. While working in Switzerland, you pay the AVS/AI contributions (5.3% to be paid by the employee) to the Swiss employer. If you reside in Italy for more than 183 days per year, you may have residual INPS contribution obligations; however, the bilateral agreement coordinates payments to avoid duplication. I recommend checking with your employer and an Italian tax expert what the exact obligations are in your case.
Can I choose Swiss health insurance (LAMal) even if I live in Cittiglio?: Yes. Border workers have the right of option on the Swiss LAMal instead of maintaining Italian coverage. Adult deductibles range from CHF 300 to CHF 2,500 depending on the canton of insurance. It's a personal choice that depends on the total cost of coverage and health needs. Compare the amounts with your current Italian insurance before deciding.
What documents do I need to register in Cittiglio as a border worker?: Typically: passport/ID card, Swiss employment contract, employer's statement, initial paycheck, previous residence certificate (from where you were residing before). Contact the Cittiglio registry office for a complete and up-to-date list. It is also essential to obtain the G permit at the Ticino canton before final registration.