Can I choose to pay taxes in Italy instead of Switzerland?

No. As a border crossing with Permit G, the source tax is applied in Switzerland by the employer and is mandatory according to federal rates (AVS/AI/IPG 5.3%, AD/AC 1.1%, LAINF). Italy does not tax labour income earned in Switzerland; it recognises the Double Taxation Convention (9 December 1976). You pay in Switzerland via coupon; in Italy you decline the tax credit on the declaration (EC framework model 730) and reduce/reset the personal income tax due.

Does the €7,500 (or €10,000) exemption mean I pay nothing on that part?

Yes, the exemption reduces * * Italian taxable income (IRPEF). In Switzerland, the tax at source is applied on the gross without considering the exemption. The benefit is realised in Italy: the taxable income IRPEF is reduced by €7,500 (historical frontier workers, transitional regime 2024–2033) or €10,000 (new frontier workers from 17 July 2023). Then, apply the reduced IRPEF rates. The Swiss tax credit (AVS/AI/IPG) then further covers the Italian IRPEF.

If I choose LAMal, what is the monthly cost?

It depends on the deductible chosen and the sickness fund. An adult with an excess of CHF 2,500 (maximum) pays the lowest premium (approx. CHF 200–350 per month, variable per case/canton/age). With an excess of CHF 300 (minimum), the premium is higher (approx. CHF 400–600 per month). Compare the offers of the major coffers (Assura, CSS, Helsana) on their website or [usa il tool di confronto LAMal](nav:health) to see the options in your municipality of residence.

When do I receive the IRPEF refund after the declaration?

If the 730 return or PF Income is accepted without error and the tax credit exceeds the IRPEF due, the refund is credited within 90 days to the indicated IBAN account. If the credit covers only part of the IRPEF, you pay the remainder in installments (via F24); there is no refund. The Revenue Agency automatically checks with the Swiss authorities (AFC/ESTV) via data exchange (1976 Convention).

Do I lose my Italian pension rights if I work in Switzerland?

No. Stay enrolled in the **INPS** (Fondo Generale Lavoratori Dipendenti Privati) and accumulate Italian contributions if you have periods of employment in Italy prior to or parallel to frontier work. At the same time, you accumulate ** Swiss AVS ** credits from your current job. Upon retirement, you receive two separate annuities: AVS Swiss (calculated on 5.3% payments in Switzerland) + INPS Italian (calculated on payments in Italy). Periods DO NOT transfer automatically, but both pledges remain valid.

Living in Nesso and working in Ticino as a border worker (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 19 August 2026

View of Lake Como from Nesso with Swiss Alps visible across the border to Ticino

Complete guide: G permit, bilateral taxation, source tax, exemptions €7,500-€10,000, AVS, LAMal, rebates. Procedures and checklists to start as an Italy-Ticino border worker.

Context

In Brief

New Frontier Agreement in force from January 1, 2024 (Italian ratification: Law 83/2023)
Tax exemptions: CHF 7,500 for historical frontiers, CHF 10,000 for new ones (from July 17, 2023)
Withholding tax: ONLY in Switzerland, credit for tax recognized in Italy
Federal deductions: AVS/AI/IPG 5.3%, AD/AC 1.1%, LAINF 0.7–1.5%

Key Facts

What: Tax and pension regime for frontiers with Italy-Ticino G Permit
When: In force from January 1, 2024
Where: Frontiers from Italian municipalities (Nesso and Lario area) to Ticino
Who: Holders of G Permit authorized by SEM
Historical exemption: CHF 7,500 per year (transitional regime 2024–2033)
New exemption: CHF 10,000 per year (frontiers from July 17, 2023)
Withholding tax: 5.3% AVS/AI/IPG withheld by the Swiss employer
Double taxation convention: December 9, 1976

Living in Nesso, a picturesque municipality on the Lombardy side of Lake Lario, and commuting daily to Ticino for work has become a consolidated reality for thousands of frontiers. The regulatory framework governing this condition has been renewed with the New Frontier Agreement, signed on December 23, 2020, and entered into force on January 1, 2024 through Italian ratification via Law 83 of June 13, 2023.

…

Operational details

To understand the Italian-Swiss bilateral fiscal structure is essential for planning your move to Nesso. The taxation of foreign income follows a precise architecture established by the 1976 Convention and strengthened by the 2024 New Agreement.

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

Social protection is an essential pillar for those who live in Nesso and work in Ticino. Frontier workers have specific rights to health insurance, pensions and supplementary pensions. # ## LAMal: health insurance — optional but strategic choice As a G Permit holder, you have the option right on the LAMal (Loi sur l 'Assurance Maladie svizzera). It is not automatic; you choose whether to cover in Switzerland or keep the Italian system (public SSN). If you opt for the Swiss LAMal, take out a policy at a recognized sickness fund (Assura, CSS, Helsana, Visana, etc.). The deductibles (deductibles) can be parameterized: - Adults: CHF 300-2,500 per year (choose at the time of subscription) - Higher the deductible, lower the monthly premium - After deductible, you pay 10% of the expenses up to the maximum, then the cash pays 100% It is not a "health tax"; it is a mutual protection system with total coverage after deductible. Alternative: keep the Italian SSN (free for residents) and add a Swiss private supplementary policy for benefits not covered by the Italian SSN (full dentistry, eye care, psychotherapy, etc.). Many border workers choose this solution to save on the LAMal premium while having extra coverage. Critical deadline: the choice must be made within 3 months of the first employment relationship in Switzerland. After the deadline, you pay double the prize if you want to sign up late. # ## AVS: on No cantonal tax Ticino, being border. 5. Annual declaration (May following year) Fill in form 730 (via CAF) or PF Income. In the EC framework, it declares Swiss gross income, withholdings, border exemption (€7,500 or €10,000), tax credit. Attach Swiss withholding certificates. 6. Refunds (if eligible) If you have a modest income, request a Revenue Agency certificate and submit a request for refunds to the canton of Ticino (deadlines vary). To simulate your full tax situation, expected monthly net, and impact of exemption + tax credit, usa il calcolatore frontalieri. It will guide you step-by-step in calculating your net pay and taxes.

Frequently Asked Questions

Can I choose to pay taxes in Italy instead of Switzerland?: No. As a border crossing with Permit G, the source tax is applied in Switzerland by the employer and is mandatory according to federal rates (AVS/AI/IPG 5.3%, AD/AC 1.1%, LAINF). Italy does not tax labour income earned in Switzerland; it recognises the Double Taxation Convention (9 December 1976). You pay in Switzerland via coupon; in Italy you decline the tax credit on the declaration (EC framework model 730) and reduce/reset the personal income tax due.
Does the €7,500 (or €10,000) exemption mean I pay nothing on that part?: Yes, the exemption reduces * * Italian taxable income (IRPEF). In Switzerland, the tax at source is applied on the gross without considering the exemption. The benefit is realised in Italy: the taxable income IRPEF is reduced by €7,500 (historical frontier workers, transitional regime 2024–2033) or €10,000 (new frontier workers from 17 July 2023). Then, apply the reduced IRPEF rates. The Swiss tax credit (AVS/AI/IPG) then further covers the Italian IRPEF.
If I choose LAMal, what is the monthly cost?: It depends on the deductible chosen and the sickness fund. An adult with an excess of CHF 2,500 (maximum) pays the lowest premium (approx. CHF 200–350 per month, variable per case/canton/age). With an excess of CHF 300 (minimum), the premium is higher (approx. CHF 400–600 per month). Compare the offers of the major coffers (Assura, CSS, Helsana) on their website or [usa il tool di confronto LAMal](nav:health) to see the options in your municipality of residence.
When do I receive the IRPEF refund after the declaration?: If the 730 return or PF Income is accepted without error and the tax credit exceeds the IRPEF due, the refund is credited within 90 days to the indicated IBAN account. If the credit covers only part of the IRPEF, you pay the remainder in installments (via F24); there is no refund. The Revenue Agency automatically checks with the Swiss authorities (AFC/ESTV) via data exchange (1976 Convention).
Do I lose my Italian pension rights if I work in Switzerland?: No. Stay enrolled in the **INPS** (Fondo Generale Lavoratori Dipendenti Privati) and accumulate Italian contributions if you have periods of employment in Italy prior to or parallel to frontier work. At the same time, you accumulate ** Swiss AVS ** credits from your current job. Upon retirement, you receive two separate annuities: AVS Swiss (calculated on 5.3% payments in Switzerland) + INPS Italian (calculated on payments in Italy). Periods DO NOT transfer automatically, but both pledges remain