If I work in Ticino and live in Cunardo, where do I pay taxes?

The income tax at source is withheld by your Swiss employer and paid to the Swiss tax authorities. The Italian Revenue Agency DOES NOT withhold taxes directly on the paycheck. However, every year you fill out the Italian form 730 (CE framework) to declare foreign income and obtain a tax credit on the portion already paid in Switzerland. The Convention between Italy and Switzerland signed on 9 December 1976 coordinates the two systems: no double taxation, only coordination. If the Swiss tax is higher than the Italian IRPEF, you receive a refund; otherwise the difference is compensated on the deductible.

What social security contributions are withheld from the paycheck?

As a border worker Group G: AVS/AI 5.3% of gross, unemployment (AD) and disaster (AC) insurance 1.1% (capped CHF 148'200 per annum), accidents at work (LAINF) 0.7-1.5%, LPP (second pillar) 7–18% according to age group from 25th year. The total amount varies between 14% and 27% of the monthly gross. At the same time, you must register with the Italian INPS for the recognition of contributions in your social security history, guaranteeing continuity in the event of a future transfer.

Can I insure myself in Italy for the disease or do I have to choose a Swiss fund?

You have the right of option (Group G): you can choose between Swiss LAMal and equivalent Italian coverage. If you opt for Italy, check that the mutual fund also covers the services provided in the Canton of Ticino, where you work. Many border crossers choose LAMal because it offers standardized performance, retired portability and a consolidated network in Ticino. Adult LAMal deductibles range from CHF 300 to CHF 2,500 per year, with variable premiums.

What is the difference between €7,500 and €10,000 deductible?

The New Frontier Agreement (in force from 1 January 2024) established: deductible €7,500 for 'old frontier workers' (already such before 17 July 2023), with transitional regime until 2033; deductible €10,000 for 'new frontier workers' (started after 17 July 2023). The deductible is the income from tax-free work in Italy. If you earn below it, no Italian personal income tax. If you exceed the threshold, the surplus is taxable with ordinary personal income tax rates (23%, 35%, 43% according to bands).

How do I avoid double taxation between Italy and Switzerland?

The Double Taxation Convention (9 December 1976) automatically coordinates the system: Switzerland taxes labour income (source tax), Italy recognises it and applies tax credit in declaration 730 (EC framework). If the Swiss tax withheld is higher than the Italian personal income tax due on the excess deductible, you receive a refund; otherwise compensation. Fill out the 730 carefully every year: no double taxation, only harmonization.

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

Di Marco Ferrari · Published on 23 August 2026

Alpine valley at Switzerland-Italy border with small Italian town and Ticino canton in background

Permit G, tax at source, AVS and LAMal coordinated Italy-Switzerland. Everything you need to know before becoming a border crossing between Cunardo and Ticino.

Context

In a nutshell

The New Frontier Agreement is in force from 1 January 2024
Tax at source withheld ONLY in Switzerland for frontier workers
Deductible €7,500 (old border guards) or €10,000 (new) for tax coordination

Key facts

What: Living in Cunardo and working in the Canton of Ticino with G permit
When: Regime in force from 1 January 2024 (New Frontier Agreement)
Where: Italy-Switzerland border, province of Varese — Ticino
Who: Frontier workers subject to double taxation agreement (9 December 1976)
Tax amount: Withholding in Switzerland; coordination in Italy with tax credit via 730

The choice of border crossing: Italy and Switzerland

Living in Cunardo — on the Italian side of the province of Varese — and going to work daily in the Canton of Ticino is a consolidated solution for those who want to combine Swiss wages with Italian real estate costs. From 1 January 2024, the New Frontier Agreement entered into force, signed on 23 December 2020 and ratified by Italy with Law 83 of 13 June 2023. This agreement established new rules on taxation, social security and rights of frontier workers with G permit (residents in Italy, employed in Switzerland).

The convention to eliminate double taxation between Italy and Switzerland, signed on 9 December 1976, remains the pillar of coordination: Switzerland taxes income from work, Italy recognizes it with a tax credit on

Operational details

Pension: AVS, LPP and coordination with INPS

As a border worker resident in Cunardo and employed in Ticino, you are subject to Swiss social security contributions. The AVS (old-age and survivors' insurance) and the AI (disability insurance) entail a deduction of 5.3% of the employee's gross salary. This is the basis of Swiss first-pillar social security.

In addition to the AVS/AI, you pay contributions for unemployment insurance (AD) and occupational accident insurance (LAINF), with rates of 1.1% (capped at CHF 148'200 annual salary) and 0.7-1.5%, respectively, depending on the sector of activity.

The second Swiss pillar, the LPP (pension fund), has a variable rate between 7% and 18% depending on the age group — starting from the 25th year of life. This is the component that accumulates the capital for the Swiss supplementary pension.

Coordination with INPS: You must register at the competent INPS Centre (province of Varese) as a border worker. The Italy-Switzerland pension agreement recognizes the contributions paid to AVS in your Italian pension curriculum, guaranteeing the continuity of coverage even in the event of a future transfer or change of status.

Health insurance: LAMal and option rights

As a border worker you are covered by the Swiss Compulsory Health Insurance (LAMal — Health Insurance Act). The border regime (Group G) allows you to

Useful planning tools

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

Key points

Step by step: how to get started

If you are about to move to Cunardo and start an employment contract in Ticino, follow these operational steps:

Step 1: Municipal Registration and Permit G

Once you have established your residence in Cunardo, register with the municipal registry. Simultaneously, contact the Single Window for Immigration (SUI) of the Province of Varese or the competent office for issuing the Permit G (cross-border resident). This document is mandatory to work in Switzerland as an Italian resident. The permit is usually granted with validity equal to the period of the employment contract (1–5 years, renewable).

You will need the employment certificate from your Ticino employer, as well as registration of your Italian residence.

Step 2: Registration with INPS and the Tax Agency

Notify the INPS Center in Varese (or through the website inps.it) of your new status as a cross-border worker employed in Switzerland. Provide the details of your Swiss employment contract and your Permit G number.

Also register with the Tax Agency (Varese branch) as an Italian resident with foreign employment income from Switzerland. You will receive an updated tax identification number if you do not already have one.

Step 3: Choice of Health Insurance (LAMal)

Within 3 months of starting employment, you must be covered. Contact a Swiss insurance company directly (e.g., Helsana, Sympany, CSS, Visana — the main ones) or ask your employer if they have an agreement with an insurance fund. If you choose to maintain Italian coverage, verify that your mutual fund also covers services provided in the Canton of Ticino.

Step 4: Calculate Your Net Salary with the Cross-border Calculator

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Frequently Asked Questions

If I work in Ticino and live in Cunardo, where do I pay taxes?: The income tax at source is withheld by your Swiss employer and paid to the Swiss tax authorities. The Italian Revenue Agency DOES NOT withhold taxes directly on the paycheck. However, every year you fill out the Italian form 730 (CE framework) to declare foreign income and obtain a tax credit on the portion already paid in Switzerland. The Convention between Italy and Switzerland signed on 9 December 1976 coordinates the two systems: no double taxation, only coordination. If the Swiss tax is hi
What social security contributions are withheld from the paycheck?: As a border worker Group G: AVS/AI 5.3% of gross, unemployment (AD) and disaster (AC) insurance 1.1% (capped CHF 148'200 per annum), accidents at work (LAINF) 0.7-1.5%, LPP (second pillar) 7–18% according to age group from 25th year. The total amount varies between 14% and 27% of the monthly gross. At the same time, you must register with the Italian INPS for the recognition of contributions in your social security history, guaranteeing continuity in the event of a future transfer.
Can I insure myself in Italy for the disease or do I have to choose a Swiss fund?: You have the right of option (Group G): you can choose between Swiss LAMal and equivalent Italian coverage. If you opt for Italy, check that the mutual fund also covers the services provided in the Canton of Ticino, where you work. Many border crossers choose LAMal because it offers standardized performance, retired portability and a consolidated network in Ticino. Adult LAMal deductibles range from CHF 300 to CHF 2,500 per year, with variable premiums.
What is the difference between €7,500 and €10,000 deductible?: The New Frontier Agreement (in force from 1 January 2024) established: deductible €7,500 for 'old frontier workers' (already such before 17 July 2023), with transitional regime until 2033; deductible €10,000 for 'new frontier workers' (started after 17 July 2023). The deductible is the income from tax-free work in Italy. If you earn below it, no Italian personal income tax. If you exceed the threshold, the surplus is taxable with ordinary personal income tax rates (23%, 35%, 43% according to ban
How do I avoid double taxation between Italy and Switzerland?: The Double Taxation Convention (9 December 1976) automatically coordinates the system: Switzerland taxes labour income (source tax), Italy recognises it and applies tax credit in declaration 730 (EC framework). If the Swiss tax withheld is higher than the Italian personal income tax due on the excess deductible, you receive a refund; otherwise compensation. Fill out the 730 carefully every year: no double taxation, only harmonization.