If I live in Lurate Caccivio but work in Ticino, do I pay taxes in Switzerland or Italy?

You pay the tax at source ONLY in Switzerland, calculated by the employer on the gross. The Italian-Swiss Convention of 9 December 1976 attributes tax jurisdiction to the State where the income is produced (Switzerland). Italy does not apply a parallel tax, but recognises a tax credit in form 730, EC Framework: if the Swiss tax exceeds the Italian personal income tax due, the border worker gets a rebate.

What does the €10,000 deductible of the New Frontier Agreement mean?

The deductible reduces the taxable income for Swiss source tax purposes. If you receive less than €10,000 per year (new frontier from 17/7/2023), you are not subject to source tax. If you receive more, the tax is calculated only on the excess part. Historical frontier workers have a deductible of €7,500 until 2033. This Agreement shall enter into force on 1 January 2024.

What AVS and LPP contributions are withheld from me in my paycheck?

If you are an employee, you pay 5.3% for AVS/AI/IPG (Old Age Survivors Insurance, Disability, Sickness Daily Allowance). In addition, join the LPP (Compulsory Occupational Pension) system, with contributions between 7% and 18% depending on the age group (from 25 years old). These payments, withheld in a paycheck, build a Swiss pension.

Do I need to sign a Swiss LAMal if I live in Italy and work in Ticino?

LAMal is mandatory to work in Switzerland. However, as a border worker resident in Italy, you have the right of option: you can stay covered by the Italian system (INPS) or subscribe to a private Swiss LAMal. Choose according to your coverage needs and premiums. LAMal deductibles range from CHF 300 to CHF 2,500 per adult, affecting the monthly cost.

How do I manage the CHF-EUR exchange rate if I live in Italy and work in Switzerland?

The salary in CHF has a fluctuating value in EUR. A prudent strategy is to keep part of the savings in francs and part in euros, avoid immediate conversions of the entire salary, and plan larger expenses in periods of favorable exchange. Consider cross-border bank accounts with a facilitated exchange rate and CHF-EUR transfers at reduced fees to minimise conversion costs and exposure to foreign exchange risk.

Lurate Caccivio: living and working as a border worker in Ticino (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 19 August 2026

Dawn border landscape Ticino-Como region: a cross-border commuter crossing the Swiss-Italian border during daily commute to work in Switzerland.

Living in border Italy and working in Switzerland: tax, social security and practical guide for border workers with Permit G. Tax at source, AVS/LPP, LAMal and procedures.

Context

In a nutshell

Lurate Caccivio (Como) is a location for Ticino border crossers with G Permit
Tax at source ONLY in Switzerland; Italy does not apply double taxation (credit 730)
New Frontier Agreement from 1 January 2024: €10,000 excess for new frontier workers
Mandatory LAMal in Switzerland; frontier workers have the right of option (Italian INPS or CH insurance)

Key facts

What: Italian residence + Swiss work (border workers G/B Permit)
When: New Agreement in force from 1 January 2024
Where: Municipalities Como (e.g. Lurate Caccivio) ↔ Ticino (Chiasso, Mendrisio, Lugano)
Who: Frontier workers hired by Swiss companies
Tax at source: Withheld ONLY in Switzerland on the gross basis
Tax exemption: €10,000 per year (new); €7,500 (old border guards, 2024–2033 regime)
AVS/LPP contributions: 5.3% AVS/AI/IPG + 7–18% LPP employee (for 25 years)

The Como-Ticino border crossing: status and regulations

Lurate Caccivio is an Italian municipality in the province of Como, located on the border with the Canton of Ticino. It represents a possible housing choice for those who work in the Swiss territory and intend to reside in Italy. This structure has precise fiscal, social security and administrative implications, governed by the New Frontier Agreement, signed on 23 December 2020 and in force since 1 January 2024.

The border worker is the one who holds a G Permit (border, renewable annually) or B Permit (resident, two-year duration) and

Operational details

Health insurance (LAMal) and right of option

The border worker is obliged to be insured with a LAMal (Swiss Health Insurance) in order to be able to work and reside in Switzerland on a temporary basis. However, being resident in Italy, the border worker has a right of option unique among the categories of foreigners: he can choose whether to remain covered by the Italian system (INPS, Istituto Nazionale Previdenza Sociale) or subscribe to a Swiss private LAMal.

Many border workers choose to retain Italian INPS coverage (public system, often lower cost) and renounce the Swiss LAMal, thanks to an agreement between Italy and Switzerland that protects pension and health rights. Others prefer LAMal to ensure direct Swiss coverage during working periods in Ticino.

If the border agent opts for the Swiss LAMal, the deductibles (annual overdraft limit before the insurance covers the expenses) range from CHF 300 to CHF 2500 for adults, depending on the policy. This choice directly impacts the monthly premium.

Contrary to what the colloquial term "health tax" may suggest, LAMal is a compulsory insurance, not a tax: the premium is paid directly to the chosen sick fund, not to the State.

Financial management: CHF vs EUR

The border worker who lives in Lurate Caccivio and works in Ticino faces continuous exposure to the CHF/EUR exchange rate: the salary is paid in

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

Registration Procedure and Checklist for Practice

Who decides to move to Lurate Caccivio to work in Ticino must follow a sequence of administrative and documentary obligations.

Step 1: Obtain the G Permit

The G Permit (frontalier annual permit) is issued by the cantonal authorities of Ticino, usually by the Population and Migration Office (SPM, Section Population Migration) of the canton. You must submit:

A signed employment contract with the Swiss company (authenticated copy)
Job offer and communication from the employer
Valid Italian identity document
Declaration of residence in Italy

The request is deposited at the competent office of the canton. The release usually takes place within 2-4 weeks.

Step 2: Register residence in Lurate Caccivio

Registered with the Anagrafe of the Italian municipality, obtaining a residence certificate. This document is essential for Italian tax declaration and the right to opt for LAMal.

Step 3: Subscribe to LAMal or communicate INPS option

If you choose the Swiss LAMal, contact a recognized Swiss health insurance fund (lists available at the Ticino Canton Health Office). The subscription must take place BEFORE starting work.

If you prefer to keep INPS coverage, communicate this choice to the Italian Frontier Office (SPM Italian, if available) and keep documentation of registration.

Step 4: Communicate data to the Swiss employer

The employer is required to calculate and pay the withholding tax on the salary slip. Provide them with:

Swiss tax identification number (if requested)
Residence in Italy (for tax calculation)
LAMal/INPS option

Step 5: Open bank accounts

…

Frequently Asked Questions

If I live in Lurate Caccivio but work in Ticino, do I pay taxes in Switzerland or Italy?: You pay the tax at source ONLY in Switzerland, calculated by the employer on the gross. The Italian-Swiss Convention of 9 December 1976 attributes tax jurisdiction to the State where the income is produced (Switzerland). Italy does not apply a parallel tax, but recognises a tax credit in form 730, EC Framework: if the Swiss tax exceeds the Italian personal income tax due, the border worker gets a rebate.
What does the €10,000 deductible of the New Frontier Agreement mean?: The deductible reduces the taxable income for Swiss source tax purposes. If you receive less than €10,000 per year (new frontier from 17/7/2023), you are not subject to source tax. If you receive more, the tax is calculated only on the excess part. Historical frontier workers have a deductible of €7,500 until 2033. This Agreement shall enter into force on 1 January 2024.
What AVS and LPP contributions are withheld from me in my paycheck?: If you are an employee, you pay 5.3% for AVS/AI/IPG (Old Age Survivors Insurance, Disability, Sickness Daily Allowance). In addition, join the LPP (Compulsory Occupational Pension) system, with contributions between 7% and 18% depending on the age group (from 25 years old). These payments, withheld in a paycheck, build a Swiss pension.
Do I need to sign a Swiss LAMal if I live in Italy and work in Ticino?: LAMal is mandatory to work in Switzerland. However, as a border worker resident in Italy, you have the right of option: you can stay covered by the Italian system (INPS) or subscribe to a private Swiss LAMal. Choose according to your coverage needs and premiums. LAMal deductibles range from CHF 300 to CHF 2,500 per adult, affecting the monthly cost.
How do I manage the CHF-EUR exchange rate if I live in Italy and work in Switzerland?: The salary in CHF has a fluctuating value in EUR. A prudent strategy is to keep part of the savings in francs and part in euros, avoid immediate conversions of the entire salary, and plan larger expenses in periods of favorable exchange. Consider cross-border bank accounts with a facilitated exchange rate and CHF-EUR transfers at reduced fees to minimise conversion costs and exposure to foreign exchange risk.