What is the tax exemption if I start working as a border worker in 2026?

If you started cross-border work after 17 July 2023, you fall into the category of 'new frontier workers' and benefit from an annual deductible of €10,000 on your work income, according to the New Frontier Agreement in force from 1 January 2024. This measure does not apply if you were already cross-border before that date, in which case you continue to benefit from the €7,500 exemption until 2033.

How does taxation work if I reside in Sumirago and work in Switzerland?

Tax at source is withheld in Switzerland by your employer at the federal, cantonal and municipal rate in Ticino. Italy avoids double taxation by recognizing a tax credit: enter the data in the EC Framework of your tax return (730 or Single Form). The Double Taxation Convention between the two countries, signed on 9 December 1976, regulates this system.

What rate of AVS contributions is withheld from my salary?

As a border employee in Switzerland, the AVS (Old Age and Survivors Insurance), AI (Disability) and IPG withholding is 5.3% of the gross salary. Your employer pays an additional 5.3% on behalf of the company. Further contributions concern Unemployment Insurance (AD/AC 1.1% with maximum limit) and Accident Insurance (LAINF 0.7-1.5%). For the second LPP pillar, the rates vary from 7% to 18% depending on the age group.

Do I need to sign up for Swiss Health Insurance (LAMal)?

As a border worker resident in Italy, you have the right to opt for Swiss health insurance (LAMal) or maintain Italian coverage. If you choose LAMal, adult deductibles range from CHF 300 to CHF 2,500 per year depending on the model and insurer. Carefully consider which coverage is most convenient for your case and how often you use health services.

How do I apply for the G Permit to work as a border worker in Ticino?

The application for the G Permit must be submitted to the competent Migration Office (SEM) of the canton where you work, usually through your employer. Documents such as an employment contract, documentation of Italian residence in Sumirago, and possibly health certificates are required. Approval times vary from 4 to 8 weeks depending on the canton.

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

Di Redazione Frontaliere Ticino · Published on 6 September 2026

Provincial road at the Varese-Ticino border with Swiss road signs and Alpine landscape

Practical guide to living in Sumirago and working in Ticino: permits, border taxation, administrative procedures and what to consider before transferring.

Context

In brief

Cross-border workers from Sumirago to Ticino: tax rules, G permits, and new agreement from 2024
Withholding tax deducted in Switzerland, tax credit in Italy via CE form
Annual exemption €10,000 for new cross-border workers (from 17/7/2023); €7,500 for old cross-border workers until 2033
AVS contributions 5.3% deducted from employee + multi-pillar management (LPP from 7-18%)

Key facts

Who: Cross-border workers residing in Italy and working in Canton Ticino
What: Living in Sumirago (Varese province) and working in Ticino
Permits: G permit (cross-border residence)
Taxation: Withholding tax in Switzerland + tax credit in Italy (CE form)
Current agreement: New Cross-border Workers Agreement from January 1, 2024
Exemption: €10,000 annually for new cross-border workers
Contributions: AVS/AI/IPG 5.3% employee; LPP 7–18% for age bracket (from 25 years); LAINF 0.7–1.5%

Living in Sumirago, a municipality in the province of Varese, and commuting daily to Ticino for work is a real scenario for cross-border workers seeking a balance between housing costs and job opportunities in Switzerland. The province of Varese, thanks to its border location, represents a residential alternative for those working in Canton Ticino.

What sets this choice apart is the complex tax and administrative regulations governing cross-border work between Italy and Switzerland. In recent years, the regulatory frameworks have been significantly adjusted to meet the changing needs of geographical mobility and the labor market.

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Operational details

Administrative and Contributory Planning

Choosing to live in Sumirago to work in Ticino requires understanding not only the tax aspect but also the mandatory social contributions in Switzerland and the management of documentation between the two States.

AVS/AI Contributions and Multi-Pillar Pension System

As an employed cross-border worker in Ticino, you will automatically be enrolled in the Swiss social security system. The weekly deduction for AVS (Old-Age and Survivors' Insurance), AI (Disability Insurance), and IPG (Maternity/Paternity Loss of Earnings Allowance) is 5.3% of the gross salary at the employee's expense.

The employer contributes additional amounts (5.3% AVS/AI for the employer) plus contributions for Unemployment Insurance (UI) and Family Allowance Compensation Insurance (FACI), with a total rate of 1.1% (with an annual maximum contribution limit). Accident Insurance (LAINF) ranges between 0.7% and 1.5% depending on the professional sector.

For the second pillar LPP (Professional Pension Fund), the percentages vary between 7% and 18% depending on the age group, with contributions starting from the age of 25. This multi-level structure (first pillar AVS, second pillar LPP, and the possibility of a third pillar 3a) creates a pension system significantly different from Italy.

Permit G and Administrative Registration

The first administrative step is to obtain Permit G (Residence Permit for Cross-Border Workers), which authorizes daily commuting between your Italian residence and your workplace in Ticino. The application must be submitted to the competent Migration Office of the canton where you work, in coordination with the local Swiss authority.

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Key points

Concrete steps for the transfer

If you decide to move your residence to Sumirago while continuing to work in Ticino, the administrative process must follow a logical sequence to avoid delays or complications.

Essential document checklist

The required documentation includes:

1. Residence permit/G permit: Request from the Migration Office (SEM) of the canton where you work, usually through your employer. Required: employment contract, Italian residence documentation, and possibly health certificates.

2. Income declaration: Model 730 or Model Unico, completed with the CE section for tax credit, to be submitted in Italy with Swiss income data.

3. Registration with authorities: Notification to the Italian Consulate, the Municipality of Sumirago (change of residence), the Tax Agency (notification of cross-border activity start).

4. Opening a bank account: Many Ticino employers prefer to credit the salary to Swiss bank accounts; check if this is mandatory or optional in your case.

5. Contribution certificates: Periodic requests for INPS extracts (for the payment of coordination contributions between the two countries) and AVS certificates from Switzerland through the Federal Contributions Administration (AFC/ESTV).

Times and administrative horizon

The request for the G permit can take from 4 to 8 weeks from the moment of complete documentation submission, depending on the canton and the competent office. Meanwhile, coordinate with your Ticino employer to synchronize the transition from Italian to Swiss taxation at the time of approval.

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Frequently Asked Questions

What is the tax exemption if I start working as a border worker in 2026?: If you started cross-border work after 17 July 2023, you fall into the category of 'new frontier workers' and benefit from an annual deductible of €10,000 on your work income, according to the New Frontier Agreement in force from 1 January 2024. This measure does not apply if you were already cross-border before that date, in which case you continue to benefit from the €7,500 exemption until 2033.
How does taxation work if I reside in Sumirago and work in Switzerland?: Tax at source is withheld in Switzerland by your employer at the federal, cantonal and municipal rate in Ticino. Italy avoids double taxation by recognizing a tax credit: enter the data in the EC Framework of your tax return (730 or Single Form). The Double Taxation Convention between the two countries, signed on 9 December 1976, regulates this system.
What rate of AVS contributions is withheld from my salary?: As a border employee in Switzerland, the AVS (Old Age and Survivors Insurance), AI (Disability) and IPG withholding is 5.3% of the gross salary. Your employer pays an additional 5.3% on behalf of the company. Further contributions concern Unemployment Insurance (AD/AC 1.1% with maximum limit) and Accident Insurance (LAINF 0.7-1.5%). For the second LPP pillar, the rates vary from 7% to 18% depending on the age group.
Do I need to sign up for Swiss Health Insurance (LAMal)?: As a border worker resident in Italy, you have the right to opt for Swiss health insurance (LAMal) or maintain Italian coverage. If you choose LAMal, adult deductibles range from CHF 300 to CHF 2,500 per year depending on the model and insurer. Carefully consider which coverage is most convenient for your case and how often you use health services.
How do I apply for the G Permit to work as a border worker in Ticino?: The application for the G Permit must be submitted to the competent Migration Office (SEM) of the canton where you work, usually through your employer. Documents such as an employment contract, documentation of Italian residence in Sumirago, and possibly health certificates are required. Approval times vary from 4 to 8 weeks depending on the canton.