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. They benefit from an annual exemption of €7,500 on their income declared in Italy, with a transitional regime until 2033. New cross-border workers (obtained a G permit after July 17, 2023) benefit from an annual exemption of €10,000. 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 (cross-border guide)

Di Marco Ferrari · Published on 6 September 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 ONLY in Switzerland; Italy avoids double taxation with tax credit (CE 730 form)
New Frontalier Agreement in effect from January 1, 2024: exemption €7,500 (old frontalieri), €10,000 (new)
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 December 9, 1976
Where: Daverio (Varese, Italy) → Ticino (Switzerland)
Who: SECO, Canton Ticino, Tax Agency, AFC/ESTV
Exemption: €7,500 (old frontalieri), €10,000 (new); transitional regime 2024-2033
Permit: Permit G for foreign resident frontalieri
Taxes: Withholding tax ONLY 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 (December 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 ONLY 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).

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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, 35% 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 exemption of €7,500 (old cross-border workers) or €10,000 (new) further reduces the Italian taxable amount.

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%.

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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. They benefit from an annual exemption of €7,500 on their income declared in Italy, with a transitional regime until 2033. New cross-border workers (obtained a G permit after July 17, 2023) benefit from an annual exemption of €10,000. 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.