Where is the tax withheld at source if I work in Ticino as a Valle Cannobina resident?

Income tax at source is only withheld in Switzerland, in the Canton of Ticino where you work. Italy does not apply taxation on gross wages thanks to the New Frontier Agreement that entered into force on 1 January 2024. However, Italy taxes gross income according to progressive IRPEF; you can avoid double taxation by requesting a tax credit in the Italian income tax return (EC framework of 730), offsetting the Swiss taxes already paid.

How much is the tax exemption for a new border crossing from Valle Cannobina?

If you started working after July 17, 2023 (new frontier), the annual deductible is CHF 10,000. This means that income up to CHF10,000 is not subject to tax at source in Switzerland, as long as you remain resident in Italy. If you earn more than CHF 10,000 per year, the surplus is taxed at Ticino rates.

Do I have to pay AVS/LPP as a border crossing from Valle Cannobina?

Yes. AVS (Old Age/Survivors Insurance) and AI (Disability Insurance) are mandatory from the first day of work in Switzerland: contribute 5.3% of the gross salary. The LPP (Occupational Pension, second pillar) is also mandatory from the age of 25: the employer and you pay between 7–18% depending on age. These contributions accumulate towards a future old-age pension and disability benefits.

Which health insurance should I choose, Italian INPS or Swiss LAMal?

As a border crossing with a G permit, you have the right of option. You can keep the Italian INPS (if registered as an employee in Italy) or sign a LAMal with a Swiss insurer. Many border workers keep INPS for continuity, but evaluate the coverage: LAMal offers adult deductibles between CHF 300–2500 depending on the policy, covering hospitalization, medical care, drugs. Consult an insurance agency for an economic-qualitative comparison.

How does the G permit procedure work for living in Valle Cannobina and working in Ticino?

The G permit is required at the municipality of Italian residence or the finance barracks, providing the employment contract signed by the Ticino employer and identity documents. The employer must have registered the report with the Division of Economics of the Canton of Ticino (DFE). Release times vary, but are typically a few weeks. The permit allows you to work in Switzerland while residing in Italy and to benefit from the border tax regime.

Border workers in Valle Cannobina: working in Ticino (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 23 August 2026

Alpine valley landscape on the Ticino-Italy border with mountain villages and border crossing roads

Taxation, social security and procedure for those who choose Valle Cannobina as their residence and Ticino as their workplace. Tax at source, AVS/LPP, LAMal and G permit: everything you need to know.

Context

In a nutshell

New Agreement 2024 tax change for border workers from Valle Cannobina
Withholding tax withheld only in Switzerland, double taxation avoided
G Permit required, AVS/LPP/LAMal required for residents
Cost of living lower than Ticino, evaluate commuting times

Key facts

What : Tax regime for border workers resident in Italy, working in Switzerland
When: From 1 January 2024 (New Frontier Agreement)
Where: Valle Cannobina (Piedmont, VCO) → Ticino
Who: Frontier workers with G permit
Tax: Withholding tax in Switzerland (AVS/AI/IPG 5.3%, AD/AC 1.1%, LAINF 0.7–1.5%)
Deductible: CHF 10,000 per year (new frontier workers post-17/7/2023)
Insurance: LAMal compulsory, adult deductible CHF 300–2500

Valle Cannobina, in the province of Verbano-Cusio-Ossola in Piedmont, has been attracting thousands of Italian border workers working in Ticino for decades. The valley, characterized by mountains, lakes and small villages, offers a lower cost of living than the Canton of Ticino, as well as a quality of life linked to the spaces and the Alpine community. But moving to the Italian valley and working in Switzerland entails tax, social security and bureaucratic implications that require careful planning.

Why Valle Cannobina attracts frontier workers

The valley, located a few kilometers from the Ticino border and the passes of Brogeda and Gaggiolo, allows commuting to the Canton of Ticino in relatively easy times. The cost of living —

Operational details

Taxation: the new 2024 regime

The New Frontier Agreement, signed on 23 December 2020 and entered into force on 1 January 2024, amended the tax regime for Italian border workers working in Switzerland. The main novelty: the income tax at source is withheld only in Switzerland (in the canton of Ticino), not in Italy. Italy avoids double taxation through a tax credit on the EC framework of the tax return (form 730).

New frontier workers (those who started working after 17 July 2023) benefit from an annual allowance of CHF 10,000. This means that incomes up to CHF 10,000 are not subject to taxation in Switzerland, provided that the frontier worker remains resident in Italy. Old frontier workers (already such before 17 July 2023) benefit from a lower allowance (CHF 7,500) on a transitional basis until 2033.

How taxes are calculated

Swiss rates applied to income tax at source vary by income bracket and canton. In the Canton of Ticino, as in all cantons, the tax is federal + cantonal + municipal. In addition to income tax, the border employee contributes to:

AVS/AI/IPG: 5.3% of gross salary (old-age pension, invalidity, maternity allowance)
AD (unemployment) and AC (wage integration): 1.1% (on incomes up to CHF 148'200 per annum)
LAINF (accident insurance): 0.7–1.5% (depends

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

Mandatory Pension and Health Insurance

Living in Valle Cannobina and working in Ticino requires registration for:

AVS (Old Age and Survivors Insurance) and AI (Invalidity Insurance): mandatory payments from the first day of work (5.3% for employees). The contributions paid accumulate towards a future old-age pension calculated at 65 years for men, 64 for women (subject to revisions).
LPP (Professional Pension, second pillar): payments between 7-18% depending on age (from 25 years). LPP complements AVS with an additional pension at retirement.
LAMal (Health Insurance): frontier workers with a G permit have the option to choose — they can maintain Italian insurance (through INPS), or subscribe to a LAMal policy with a Swiss insurer. LAMal policy deductibles for adults range from CHF 300-2500 depending on the chosen policy. LAMal covers hospitalization, medical care, medication, and physiotherapy.

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Frequently Asked Questions

Where is the tax withheld at source if I work in Ticino as a Valle Cannobina resident?: Income tax at source is only withheld in Switzerland, in the Canton of Ticino where you work. Italy does not apply taxation on gross wages thanks to the New Frontier Agreement that entered into force on 1 January 2024. However, Italy taxes gross income according to progressive IRPEF; you can avoid double taxation by requesting a tax credit in the Italian income tax return (EC framework of 730), offsetting the Swiss taxes already paid.
How much is the tax exemption for a new border crossing from Valle Cannobina?: If you started working after July 17, 2023 (new frontier), the annual deductible is CHF 10,000. This means that income up to CHF10,000 is not subject to tax at source in Switzerland, as long as you remain resident in Italy. If you earn more than CHF 10,000 per year, the surplus is taxed at Ticino rates.
Do I have to pay AVS/LPP as a border crossing from Valle Cannobina?: Yes. AVS (Old Age/Survivors Insurance) and AI (Disability Insurance) are mandatory from the first day of work in Switzerland: contribute 5.3% of the gross salary. The LPP (Occupational Pension, second pillar) is also mandatory from the age of 25: the employer and you pay between 7–18% depending on age. These contributions accumulate towards a future old-age pension and disability benefits.
Which health insurance should I choose, Italian INPS or Swiss LAMal?: As a border crossing with a G permit, you have the right of option. You can keep the Italian INPS (if registered as an employee in Italy) or sign a LAMal with a Swiss insurer. Many border workers keep INPS for continuity, but evaluate the coverage: LAMal offers adult deductibles between CHF 300–2500 depending on the policy, covering hospitalization, medical care, drugs. Consult an insurance agency for an economic-qualitative comparison.
How does the G permit procedure work for living in Valle Cannobina and working in Ticino?: The G permit is required at the municipality of Italian residence or the finance barracks, providing the employment contract signed by the Ticino employer and identity documents. The employer must have registered the report with the Division of Economics of the Canton of Ticino (DFE). Release times vary, but are typically a few weeks. The permit allows you to work in Switzerland while residing in Italy and to benefit from the border tax regime.