Living in Chiavenna and working in Graubünden as a border worker (cross-border guide)

Context

In a nutshell

• The New Frontier Agreement was signed on 23 December 2020. - It entered into force on 1 January 2024. - The Italian-Swiss Convention is dated 9 December 1976.

Key facts

• New Frontier Agreement signed on 23 December 2020. - Effective January 1, 2024. - Italian-Swiss Convention of 9 December 1976.

The New Frontier Agreement was signed on 23 December 2020 and will apply from 1 January 2024. This agreement replaces the Italian-Swiss Convention of 9 December 1976.

Examples

Imagine living in Chiavenna, Switzerland, and working in Graubünden, Switzerland. We are border workers and we are entitled to benefit from the benefits provided by the New Border Agreement.

Contributions

Contributions for frontier workers are calculated on the basis of gross income. According to the New Frontier Agreement, contributions for frontier workers are 3.8% for incomes up to 19,500 Swiss francs, 4.4% for incomes between 19,500 and 25,500 Swiss francs and 4.9% for incomes above 25,500 Swiss francs.

Here is a concrete example: if we earn 30,000 Swiss francs per year and live in Chiavenna, our contribution would be 4.9% (30,000 x 0.049 = 1,470 Swiss francs per month).

Taxes

Taxes for frontier workers are calculated on the basis of gross income. According to the New Frontier Agreement, taxes for frontier workers are 10% for incomes up to 7,500 Swiss francs, 14% for

Operational details

Tax at source is a key aspect for border workers working in Switzerland. In this case, the source tax is only withheld in Switzerland for frontier workers, while Italy avoids double taxation with the tax credit. Adults working in Switzerland can opt for Swiss or Italian health insurance (LAMal).

The deductible for health insurance is CHF 300-2,500. For example, if a frontier worker works in Switzerland and earns CHF 5,000 per month, the deductible could be CHF 1,500. In this case, the frontier worker could opt for Swiss health insurance and pay CHF 1,500 per month.

It is important to note that adults working in Switzerland can opt for Swiss or Italian health insurance. If they opt for Italy health insurance, they may have to pay CHF 500-1,000 per month, depending on income.

According to the federal law of 14 December 2000 (LAMal), adults working in Switzerland can opt for Swiss or Italian health insurance.

Here is a checklist for border workers working in Switzerland:

• Check if they are exempt from Source Tax in Switzerland
• Check if they have an income from work in Switzerland
• Opt for Swiss or Italian health insurance
• Check the deductible for health insurance
• Pay deductible or health insurance

In comparison, if a frontier worker works in

Useful planning tools

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

Key points

For border workers working in Switzerland, it is essential to check the rules and procedures for their specific situation. They can consult the AFC/ESTV or INPS website for detailed information. In addition, they can contact a lawyer specialising in border law for personalised advice.

If you decide to move to Chiavenna and work in Graubünden, it is important to consider the following information:

• Taxes: Border crossers are subject to Swiss taxes, but can request a refund for Italian taxes paid. According to the Swiss law of 1 January 2019, frontier workers can claim a refund for Italian taxes paid if they have worked in Switzerland for at least 90 days in the course of a year. You must file your tax return in Switzerland and a copy of your tax return in Italy. - Health insurance: Border workers are subject to Swiss health insurance, but can apply for coverage in Italy. You must present a copy of the health insurance policy in Switzerland and a copy of the health insurance policy in Italy. - Work: Border workers can work in Switzerland without a work permit, but they must present a copy of their identity card and a copy of their employment contract. You must file your tax return in Switzerland and a copy of your tax return in Italy. -

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