Cross-border commuters from Italy: health insurance, taxes and social security

Who counts as a cross-border commuter from Italy?

For tax purposes, the cross-border commuter agreement between Switzerland and Italy uses its own definition: cross-border commuters live in an Italian municipality that lies wholly or partly within 20 kilometres of the border, work in the cantons of Ticino, Graubünden or Valais and, in principle, return to their place of residence every day.

For the cross-border commuter permit (G permit), on the other hand, a weekly return is generally sufficient. For example, if you work in Zurich and travel to Italy at weekends, you may hold a G permit but not fall under the cross-border commuter rule for tax purposes.

Switzerland–Italy cross-border commuter agreement: existing and new commuters

The new cross-border commuter agreement has applied since 2024. What matters is when your activity began. If you were already working as a cross-border commuter in the border area between the end of 2018 and the agreement's entry into force in July 2023, you count as an existing cross-border commuter. A transitional arrangement applies to you: you continue to be taxed at source in Switzerland only.

New cross-border commuters who started their activity later are subject to shared taxation: Switzerland levies a reduced withholding tax of at most 80 per cent of the usual amount. Italy also taxes the income, but credits the Swiss tax and grants cross-border commuters an increased tax-free allowance.

• Document the start of your cross-border activity with your employment contract
• Check whether your municipality of residence lies within the 20-kilometre zone
• If you change jobs, clarify whether your existing status is retained
• As a new cross-border commuter, plan for a tax return in Italy

Outside the border zone: general rules of the double taxation agreement

If you live outside the border zone, work in another canton or do not return home every day, the cross-border commuter agreement does not apply. Your salary is then generally taxed at source in Switzerland and also in Italy, with the Swiss tax being credited. This situation should be checked before you start the job.

Health insurance: KVG or Servizio Sanitario Nazionale

Cross-border commuters resident in Italy can also choose whether to insure themselves in Switzerland under the Health Insurance Act (KVG) or in the Italian health system (Servizio Sanitario Nazionale). The decision must be made within three months of starting work and generally applies permanently.

Italy has adopted a health contribution for certain cross-border commuters insured in the Italian system. Whether and to what extent it affects you should be checked against the current position before you decide. Compare costs and benefits for your whole household before the deadline expires.

Telelavoro: working from home as a cross-border commuter from Italy

Switzerland and Italy have agreed that cross-border commuters can do part of their work from home without losing their tax status – currently up to 25 per cent of working time. If you work more from Italy, you risk being taxed differently.

A separate threshold applies to social security: under the general rules, a share of 25 per cent or more in your country of residence can shift responsibility to Italy. Whether special teleworking rules apply in relation to Italy must be clarified case by case.

Social security and retirement planning in Switzerland

If you work in Switzerland, you generally pay into AHV/IV/EO (old-age, disability and income compensation insurance), unemployment insurance and – above a certain salary – a BVG pension fund. Your employer insures you against accidents. If you become fully unemployed, Italy is generally responsible for benefits.

Your Swiss AHV/OASI contributions and your Italian contribution periods with INPS are not lost. Later on, each country generally pays its own pension for the contribution periods completed there.

You can open a pillar 3a account if you are subject to AHV/OASI contributions in Switzerland. Whether it pays off for tax purposes depends on whether you are taxed as an existing or a new cross-border commuter.

Filing an Italian tax return as a cross-border commuter

As a new cross-border commuter, you generally declare your Swiss salary in your Italian tax return every year. There, the Swiss withholding tax is credited and the cross-border commuter allowance is taken into account. As an existing cross-border commuter, your salary is in principle only taxable in Switzerland – but you must still declare any other income in Italy.

Keep your salary statement, withholding tax certificate and records of your working days to hand every year. That way, queries from the Italian authorities can be answered quickly.

Checklist for starting out as a cross-border commuter from Italy

Many decisions are made in the first few weeks after starting your job. Deal with these points early:

• Apply for the G permit together with your employer
• Check whether your municipality lies within the border zone and whether you work in Ticino, Graubünden or Valais
• Clarify and document your status as an existing or new cross-border commuter
• Compare health insurance and decide within three months
• Agree your home-office days with your employer and record them
• Collect documents for your Italian tax return from the start

Common mistakes made by cross-border commuters from Italy

These points most often lead to back-tax demands or missed opportunities:

• Status as an existing or new cross-border commuter not clarified
• Job changed without checking the consequences for your status
• No Italian tax return filed as a new cross-border commuter
• Working from home beyond the agreed limit
• Health insurance chosen without taking the health contribution into account

How PROFINIO supports you as a cross-border commuter from Italy

Your dedicated contact person clarifies with you whether you count as an existing or a new cross-border commuter, compares health insurance before the deadline expires and keeps track of home-office days and deadlines in both countries. You upload documents to the client portal, including with your phone. We advise you in Italian, German, French or English.

Frequently asked questions