Does a border worker in Daverio pay taxes in Italy and Switzerland at the same time?

No. Tax at source is ONLY withheld in Switzerland by the employer. In Italy, the frontier worker declares Swiss income in the EC framework (model 730), but the Revenue Agency recognizes a tax credit equivalent to the taxes already paid in Switzerland, avoiding double taxation. If the Swiss tax is higher, the frontier worker gets a net refund.

What permit do I need to work as a cross-border commuter in Ticino?

Permit G (border permit), administered by the Canton of Ticino and the federal authorities SECO. It is a document bound to Switzerland, non-transferable, and must be requested by the Swiss employer in coordination with the Italian authorities. Once obtained, it authorizes the resident Italian citizen to work in Switzerland for the entire duration of the contract.

Who are the 'old' and 'new' frontiersmen in the New Deal?

Old cross-border workers are those who already had a G permit before July 17, 2023. Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement). The Article 9 transitional regime applies only to workers who meet the Agreement’s definition and worked in Graubünden, Ticino or Valais between 31 December 2018 and 17 July 2023; covered employment income is taxable exclusively in Switzerland. The ordinary regime applies in other cases, with Italian taxation and credit for Swiss tax where applicable. The €10,000 in Article 4 of Law 83/2023 is only the income limit referred to in Article 1(175) of Law 147/2013, not a general allowance. [FTA factsheet](https://www.estv.admin.ch/dam/it/sd-web/Zbr5Jb-40aYm/int-laender-it-faktenblatt-faqs-it.pdf) · [Agreement, Article 9](https://www.fedlex.admin.ch/eli/cc/2023/410/en) · [Normattiva, Article 4](https://www.normattiva.it/atto/caricaDettaglioAtto?atto.articolo.numero=4&atto.codiceRedazionale=23G00087&atto.dataPubblicazioneGazzetta=2023-06-30&bloccoAggiornamentoBreadCrumb=true&classica=true&dataVigenza=09%2F09%2F2026&generaTabId=true&tipoDettaglio=singolavigenza&title=lbl.dettaglioAtto). Both avoid double taxation thanks to the tax credit.

What are AVS, LPP and LAMal?

AVS (old-age insurance) and LPP (occupational pension, second pillar) are the pillars of the Swiss pension. As an employee in Ticino, the border worker pays 5.3% by way of AVS/AI/IPG and, depending on age, from 7% to 18% for the LPP. LAMal is the mandatory health insurance in Switzerland, with adult deductibles between CHF 300 and CHF 2,500 per year.

Living in Daverio, working in Ticino as a border worker

By Marco Ferrari (editorial byline of the newsroom, AI-generated text) · Published on 6 September 2026 · Updated on 31 October 2026

Lugano waterfront view with Swiss Alps in background, Ticino's financial center for cross-border workers

Complete guide for Italian border workers: G permit, source tax, double taxation, AVS, LPP and how to maximize your salary working in Switzerland.

Context

In brief

Frontaliero = withholding tax in Switzerland; Italy avoids double taxation with tax credit (CE 730 form)
The €10,000 threshold in Article 4 of Italian Law No. 83/2023 applies exclusively to employment income earned continuously and exclusively by Italian residents in a foreign border area or neighbouring country, as referred to in Article 1(175) of Law No. 147/2013; it is neither a general allowance nor an exemption from Swiss withholding tax.
Permit G is the essential document for working in Switzerland as a foreign resident

Key facts

What: Frontaliero = worker residing in Italy, employed in Switzerland with permit G
When: New Agreement from January 1, 2024; Italo-Swiss Convention from March 9, 1976
Where: Daverio (Varese, Italy) → Ticino (Switzerland)
Who: SECO, Canton Ticino, Tax Agency, AFC/ESTV

Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement).

Permit: Permit G for foreign resident frontalieri
Taxes: Withholding tax in Switzerland; tax credit in Italy (CE 730 form)

Daverio, a municipality in the province of Varese a few kilometers from the Ticino border, is an increasingly popular choice for those who decide to work in Switzerland while maintaining residency in Italy. The geographical position, the lower cost of living compared to Ticino, and the tax benefits of the New Frontalier Agreement signed on December 23, 2020 (in effect from January 1, 2024) make this option attractive to thousands of commuters.

The tax regime for frontalieri who live in Daverio and work in Ticino is based on two normative pillars: the Convention to avoid double taxation between Italy and Switzerland (March 9, 1976) and the New Frontalier Agreement (in effect from January 1, 2024 with Law 83 of June 13, 2023 in Italy). This framework ensures that the withholding tax is deducted in Switzerland by the employer, while Italy avoids double taxation by recognizing a tax credit in the CE section of the income tax return (model 730).

A frontaliero who resides in Daverio and works for a Ticino company does not pay the same taxes twice: they pay taxes in Switzerland (withholding tax, AVS, LPP, LAMal) and then declare the income in Italy, obtaining a tax credit from the Italian tax authorities corresponding to the taxes already paid in Switzerland. If the Swiss taxes are higher than the Italian ones—which is the case in most situations—the frontaliero benefits from a net refund.

Permit G: the essential document

Permit G (frontaliero permit) is the document that authorizes an Italian citizen residing in Daverio to work in Switzerland. It is a document tied to Switzerland (not transferable to other countries), renewed annually or for multi-year cycles, and administered by the Canton Ticino and the federal authorities SECO (State Secretariat for Economic Affairs).

Anyone who resides permanently in Daverio and signs a work contract with a Ticino company must submit the application for Permit G to the competent cantonal office in Ticino. The request is processed in coordination with the Swiss employer and the Italian authorities (to verify the continuity of residence). Not all contracts are eligible: the employer must demonstrate that the job cannot be filled by Swiss citizens, EU/AELS members, or other frontalieri already present in the market.

Once the Permit G is obtained, the frontaliero from Daverio enters the special tax regime of the New Agreement. These thresholds mean that part of the income declared in Italy is not subject to Italian taxation, reducing the overall tax burden.

Operational details

Double taxation and tax credit: how it really works

A cross-border worker living in Daverio and earning CHF 60,000 gross per year is subject to Swiss withholding tax (withholding tax) directly from their paycheck by their Ticino employer. The rate varies depending on the canton, the Ticino municipality of work, and the income, but it averages between 10% and 18% of the gross amount.

Simultaneously, the cross-border worker is obliged to declare their Swiss income in Italy to the Revenue Agency. The declared income is taxed according to the Italian IRPEF rates: 23% up to €28,000, 33% from €28,001 to €50,000, 43% over €50,000. However, by applying the tax credit for taxes paid in Switzerland (CE section of the 730 form), this credit fully or partially compensates for the Italian taxation, avoiding the payment of the same taxes twice.

To illustrate: a cross-border worker earns CHF 50,000 gross. The Swiss withholding tax is approximately CHF 7,500. The income is declared in Italy as the equivalent in euros. The Italian IRPEF would result in approximately €3,000. The tax credit recognizes the CHF 7,500 already paid in Switzerland, zeroing or almost zeroing the Italian tax due. The €10,000 threshold in Article 4 of Italian Law No. 83/2023 applies exclusively to employment income earned continuously and exclusively by Italian residents in a foreign border area or neighbouring country, as referred to in Article 1(175) of Law No. 147/2013; it is neither a general allowance nor an exemption from Swiss withholding tax.

Social contributions: AVS, LPP, and health insurance

As an employee in Switzerland, the cross-border worker automatically pays contributions for old-age insurance (AVS), disability insurance (AI), and unemployment insurance (IPG) as an employee, totaling 5.3% of the gross salary. An additional 1.1% goes to accident insurance (AD/AC), with a cap of CHF 148,200 annual income. The temporary insolvency insurance (LAINF) costs between 0.7% and 1.5%.

For professional pension (LPP, second pillar), the employee's contribution varies from 7% to 18% depending on age (from 25 years onwards) and the employer. These payments build an additional pension to the basic AVS pension, essential for maintaining the standard of living after retirement.

Health insurance (LAMal) is mandatory in Switzerland. Cross-border workers with a G permit have the right to choose: they can insure with a Swiss health insurance company (deductibles from CHF 300 to CHF 2,500 annually for adults) or, in some cases, maintain enrollment in the Italian National Health Service if the cantonal legislation allows it. The choice has implications for health coverage and overall costs.

Italian taxation on foreign income

Italy taxes Italian residents on all income, regardless of where it is generated (worldwide taxation principle). However, the Italian-Swiss Convention and the New Cross-Border Agreement allow for the reduction or elimination of double taxation. The cross-border worker must complete the income tax return (730 form or Redditi PF) by entering the Swiss income in the CE section (foreign income) and indicating the taxes paid in Switzerland. The Revenue Agency calculates the tax credit (ordinary credit) and applies it directly to the Italian tax due. If the Swiss taxes exceed the Italian ones, the cross-border worker receives a refund from the Italian tax authorities.

Useful tools for your case

To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.

Key points

Before moving to Daverio to work in Ticino, it is essential to complete a series of administrative and financial steps.

Check tax deadlines for cross-border workers: returns, Swiss declarations, rebates — all dates in one interactive calendar.

Frequently Asked Questions

Does a border worker in Daverio pay taxes in Italy and Switzerland at the same time?: No. Tax at source is ONLY withheld in Switzerland by the employer. In Italy, the frontier worker declares Swiss income in the EC framework (model 730), but the Revenue Agency recognizes a tax credit equivalent to the taxes already paid in Switzerland, avoiding double taxation. If the Swiss tax is higher, the frontier worker gets a net refund.
What permit do I need to work as a cross-border commuter in Ticino?: Permit G (border permit), administered by the Canton of Ticino and the federal authorities SECO. It is a document bound to Switzerland, non-transferable, and must be requested by the Swiss employer in coordination with the Italian authorities. Once obtained, it authorizes the resident Italian citizen to work in Switzerland for the entire duration of the contract.
Who are the 'old' and 'new' frontiersmen in the New Deal?: Old cross-border workers are those who already had a G permit before July 17, 2023. Old cross-border workers remain taxed only in Switzerland (Art. 9 of the 2020 Agreement). The Article 9 transitional regime applies only to workers who meet the Agreement’s definition and worked in Graubünden, Ticino or Valais between 31 December 2018 and 17 July 2023; covered employment income is taxable exclusively in Switzerland. The ordinary regime applies in other cases, with Italian taxation and credit for Swiss tax where applicable. The €10,000 in Article 4 of Law 83/2023 is only the income limit referred to in Article 1(175) of Law 147/2013, not a general allowance. FTA factsheet · Agreement, Article 9 · Normattiva, Article 4. Both avoid double taxation thanks to the tax credit.
What are AVS, LPP and LAMal?: AVS (old-age insurance) and LPP (occupational pension, second pillar) are the pillars of the Swiss pension. As an employee in Ticino, the border worker pays 5.3% by way of AVS/AI/IPG and, depending on age, from 7% to 18% for the LPP. LAMal is the mandatory health insurance in Switzerland, with adult deductibles between CHF 300 and CHF 2,500 per year.