Living in Cedrasco, working in Graubünden: a guide

Context

In brief

• Permit G permanent authorization for commuters Cedrasco→Graubünden
• Withholding tax paid only in Switzerland (~4.5% on salaries up to CHF 148,200)
• New commuters: €10,000/year exemption on Italian income
• New Cross-Border Workers Agreement effective from January 1, 2024

Key facts

• What: Authorization to work in Switzerland from Italian residence
• When: Permit G permanent; New Cross-Border Workers Agreement from January 1, 2024
• Where: Cedrasco (Italy, Lombardy) → Graubünden (Switzerland)
• Who: Commuters subject to INPS Italy and AVS Switzerland
• Exemption: €10,000 (new commuters), €7,500 (old, 2024–2033)
• Withholding tax: ~4.5% on salaries up to CHF 148,200
• Convention: March 9, 1976 (double taxation Italy-Switzerland)

Moving to Cedrasco and working in Graubünden represents a concrete opportunity for those seeking a Swiss salary without leaving Italian residence. But the process is not automatic: it requires mastery of the rules governing cross-border work between Italy and Switzerland. The foundation is Permit G, the authorization that allows an Italian citizen residing in Cedrasco to work in Graubünden while maintaining Italian residence. This is not a Swiss residence permit, but a specific authorization for work activity.

The legal basis is the Convention on Double Taxation between Italy and Switzerland, signed on March 9, 1976, supplemented by the New Cross-Border Workers Agreement effective from January 1, 2024 (Italian ratification law 83/2023). This agreement has modified the tax regime for new commuters, introducing an annual exemption of €10,000 on income declared in Italy. Commuters already registered before July 17, 2023, maintain an exemption of €7,500 in a transitional regime until 2033.

Permit G: rights and characteristics

Permit G is not subject to annual renewal, a crucial difference from other work permits. Switzerland does not impose numerical limits on commuters from EU countries, provided you are an Italian citizen regularly employed by a company in Graubünden. The Swiss employer submits the application to SECO (State Secretariat for Economic Affairs), initiating a simplified administrative process.

Registration with INPS (Italy) and with the competent AVS compensation fund (Switzerland) is mandatory to activate recognition and entitlement to social benefits in both countries. Once employed, you will receive an AVS registration number that the employer will use to withhold social security contributions from the paycheck.

Taxation: withholding tax and refunds

Taxation follows the principle of territoriality: withholding tax is deducted exclusively in Switzerland by the employer. There are no "double deductions" (neither in Switzerland nor in Italy simultaneously). On annual salaries up to CHF 148,200, the withholding for a basic rate commuter is estimated at approximately 4.5% (a percentage that may vary depending on the canton of Graubünden and the municipality of residence in Cedrasco).

Italy avoids double taxation through the tax credit in the CE section of the 730 declaration. This mechanism allows for the recovery of refunds — tax credits paid in Switzerland that the Revenue Agency recognizes in return. The annual declaration is crucial: a CAF or accountant experienced in commuters ensures correct completion and maximization of recoverable credits.

Operational details

Swiss AVS and pension contributions

Unlike pure Swiss employees, the frontier worker registered with AVS pays contributions based on the gross Swiss salary. The AVS/AI/IPG contribution is 5.3% for the employee, plus 1.1% to 1.5% for accident insurance (LAINF) depending on the employment sector. These contributions are paid directly from the paycheck, along with withholding tax.

A crucial aspect: the frontier worker employed in Graubünden is not obliged to subscribe to the second Swiss pillar (LPP, professional pension insurance) if they reside in Italy. The LPP covers an age range from 25 to 64 years with rates varying from 7% to 18% depending on age and income level. If your contract in Graubünden includes LPP, consider with your employer whether it is beneficial to maintain it or obtain an exemption as a non-resident Swiss. The Italian INPS continues to manage a minimal fraction of the contribution for "other income" or additional earnings not covered by AVS.

Choice of LAMal and right of option

As a frontier worker with Permit G, you have the right to choose health insurance: remain covered by the Italian system (CMI, National Health Card) or switch to Swiss LAMal. LAMal offers deductibles ranging from CHF 300 to CHF 2,500 annually for adults. The choice depends on personal needs: if you work in Graubünden, it might be convenient to opt for LAMal for ease of access to Swiss healthcare facilities, but it remains a voluntary decision as long as you reside in Italy.

Registered frontier workers retain full freedom of choice between the two systems. If you opt for LAMal, the notification must be made within the specified timeframe (typically 30 days from the start of employment in Switzerland). If you remain in CMI, you continue to enjoy Italian coverage for both outpatient and hospital services, although within Italian facilities.

Cost of living: Cedrasco vs. Graubünden

Living in Cedrasco means benefiting from generally lower rent and property prices compared to Swiss border towns. The Lombardy border area (Valchiavenna, where Cedrasco is located) offers housing costs compatible with a less expensive lifestyle compared to Ticino or Graubünden. However, daily commutes to Graubünden impact fuel, car maintenance, and commuting logistics. Evaluating travel times and transportation costs is crucial in the overall economic assessment of the choice.

Useful planning tools

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

Key points

Step-by-step procedure to move

First day as a cross-border worker? Our practical guide walks you from cantonal registration to your first paycheck.