From 1 January 2024, what changes for border workers living in Italy and working in Switzerland?

The new border agreement signed on 23 December 2020 enters into force. The main novelty is that the tax is withheld ONLY from Switzerland (no longer from both countries). Border workers in category G benefit from an annual tax-free exemption: €10,000 for those who start after 17 July 2023, €7,500 for those who were already border workers before (until 31 December 2033). The Italian tax credit is automatic through the CE framework of the tax return (model 730). This significantly reduces the tax burden compared to the previous regime.

What permission do you need to work in Switzerland as an Italian resident?

Permit G (Grenzgänger, frontier worker), issued by the Swiss State Secretariat for Migration (SEM). It is linked to an employment contract with a Swiss employer, it is personal, valid for 5 years and renewable. If you decide to transfer your residence to Switzerland, Permit G becomes Permit B (resident) and the tax regime changes: Swiss income becomes taxable entirely in Switzerland, without the intervention of Italy.

How does the tax return for border workers Italy→Switzerland work?

During work, the Swiss employer withholds the tax at source and pays the AVS/AI/LPP contributions. At the end of the year, submit the Italian tax return (730 or ordinary) with the EC framework for the foreign tax credit. Apply the deductible (€10,000 or €7,500) to the Swiss gross income, calculate the progressive Italian IRPEF, and subtract the credit from the Swiss tax paid. If the credit exceeds the IRPEF due, the differential is not carried over to other years.

How do frontier workers pay their AVS/LPP social security contributions?

The AVS/AI contributions (pension + disability) amount to 5.3% of the gross salary, borne by the employee. The employer pays the corresponding 5.3% as employer contributions, plus 1.1% (unemployment/occupational disease AD/AC, cap CHF 148,200). The accident insurance (LAINF) is borne by the employer (0.7-1.5%). The mandatory pension fund (LPP) is paid by the employee (7–18% depending on age, from the 25th year). These contributions grow a Swiss pension amount, independent of the Italian INPS, and are converted into a life annuity at retirement.

What is LAMal and how to choose a health insurance fund?

LAMal is the Swiss compulsory health insurance, individual (the employer does not provide it). You have to sign up for a Swiss cashier among the approximately 50 operators; the adult deductible varies between CHF 300 and CHF 2,500, the monthly premium depends on the chosen cashier and the deductible. As a category G border worker, you have the right of option: stay in the Italian National Health Service (SSN) or join a Swiss LAMal. The choice depends on costs, coverage and whether you have a dependent family.

Torre di Santa Maria: working in Graubünden as a border worker

Di Marco Ferrari · Published on 25 August 2026 · Updated on 25 September 2026

Lake Lugano view with Graubünden mountains in the background at the Ticino-Lombardy border

From 1 January 2024, the new border agreement transforms taxation. Permit G, deductible €10,000, tax in Switzerland, AVS/LPP, refreshments: here's how to live and work as a border worker.

Context

In a nutshell

New border agreement in force from 1 January 2024
Withholding tax withheld ONLY in Switzerland
Deductible €10,000 (new frontier workers), transitional regime 2024–2033
G leave for employees Italy→Switzerland

Key facts

What: New Italy-Switzerland border agreement signed on 23 December 2020
When: Effective January 1, 2024
Where: Italy-Switzerland borders (including Graubünden)
Tax: Swiss Federal Withholding Tax + Cantonal Rates
Deductible: €10,000 per year (new frontier worker), €7,500 (old, 2024–2033)
Permit: Category G (employed frontier worker)
Legal basis: Double taxation agreement 9 March 1976; IT ratification Law 83/2023

On 1 January 2024, the new border agreement between Italy and Switzerland entered into force, signed on 23 December 2020 and ratified by Italy by Law 83 of 13 June 2023. For those who live in Torre di Santa Maria and work in Switzerland (including Graubünden), this regulatory change completely changes the tax and social security regime.

The main novelty: the tax at source is withheld EXCLUSIVELY from Switzerland, no longer in double taxation. Those who work as frontier category G (employee) see the Italian tax credit automatically managed through the CE framework of the tax return. It is not simple accounting: it is a structural change that reduces the tax burden and eliminates many

Operational details

Taxation of border workers: from Swiss withholdings to Italian credit

The taxation of individuals living in Torre di Santa Maria and working in Switzerland revolves around two pillars: the withholding tax in Switzerland and the Italian tax credit.

During the employment relationship, the Swiss employer deducts the tax from the salary according to Swiss tax rates. For a dependent border worker, the AVS (pension and disability) contributions, AI, and IPG (integration income) amount to 5.3% of the gross salary. The contributions to unemployment insurance (AD) and integrated medical care (AC) are equal to 1.1%, with a maximum of CHF 148,200. The accident insurance (LAINF) varies between 0.7% and 1.5%. In addition, there is the mandatory payment to the pension fund (LPP), which oscillates between 7% and 18% depending on the age of the worker (from 25 years of life). All these amounts are deducted from the net salary received.

At the Italian tax return (model 730), the border worker declares the gross income earned in Switzerland, subtracts the exemption (€10,000 for new, €7,500 for old border workers) and applies the IRPEF tax rate. The IRPEF Italian tax is progressive: 23% up to €28,000, 33% between €28,001 and €50,000, 43% over €50,000. In the CE framework of the tax return, the border worker reports the tax paid in Switzerland (federal + cantonal) and deducts it from the Italian tax debt.

G Permit and alternative regimes: which to choose

To work legally in Switzerland as an Italian resident, a G Permit (Grenzgänger, border worker) is required. It is not a fiscal tool, but an administrative one: it authorizes daily transit and working stay. The G Permit is linked to the Swiss employment contract and is issued by the Swiss Federal Office for Migration (SEM). If the contract ends, the permit expires and must be renewed only if the employment relationship continues.

Different is the B Permit, which authorizes permanent residence in Switzerland. If an Italian border worker decides to change residence from Torre di Santa Maria to a Swiss city (e.g. Chiasso, Lugano, Chur in the Graubünden), they pass from G Permit to B Permit, and the tax regime changes radically: Swiss income becomes fully taxable in Switzerland, without Italian tax intervention. For those earning over €50,000 gross per year, switching to Swiss residence can offer tax benefits, but involves transferring the anagraphic residence and losing Italian tax benefits. Use the G Permit vs B Permit comparator to evaluate which regime is best for your specific case.

Refunds and tax declaration: how to recover taxes

The term 'refunds' in border worker jargon indicates the recovery of part of the Swiss tax through the Italian tax credit. If the border worker pays a higher Swiss tax than the Italian one (often the case), the foreign credit reduces the Italian tax debt. During the previous regime up to 2024, many border workers received actual refunds from Switzerland (direct reimbursements for excessive taxation). With the new agreement, the mechanism is more streamlined: the exemption directly eliminates a portion of the income from the Italian taxable base. To complete the tax return 730 or ordinary, the border worker sends the Swiss tax documentation (tax certificate provided by the employer) to the Italian Revenue Agency, and the calculation is automatic.

AVS/LPP: how your pension rights grow

Swiss payments in AVS/AI and LPP (mandatory pension fund) increase your Swiss pension entitlement, independent of the Italian INPS. The AVS Swiss pension starts at 65 (men) or 64 (women) and is based on the contributions paid over the years. The LPP provides a second level of income: the amount accumulated during work is converted into a lifelong annuity at the time of retirement, or a portion can be withdrawn as capital. If you change job or residence, you can transfer the LPP amount to another institution, or leave it in a free-pass foundation.

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

Steps with concrete actions: from Permit G application to the first declaration

Phase 1: Permit G and employment contract. The first step is an offer of employment from a Swiss employer (or through a recruitment agency). With the signed contract, the Permit G application is submitted to the Swiss State Secretariat for Migration (SEM). The permit is personal, valid for 5 years and renewable if the relationship persists. Indicate in the form: employer, role, workplace, gross salary, canton of work. Wait 4–6 weeks for approval.

Phase 2: INPS registration and change of regime notification. Notify the Italian INPS of the new status: starting work in Switzerland. If you have previous INPS payments (self-employed, dependent in Italy), report the change of regime. From January 2024, frontier workers pay pension contributions in Switzerland (AVS/AI) through their employer, not in Italy. INPS will close your Italian work position.

Phase 3: LAMal — Swiss health insurance. In Switzerland, health insurance (LAMal) is mandatory and individual. The employer WILL NOT subscribe it for you; it's up to you to register with a Swiss fund (about 50 operating in the country). Adult franchisees range from CHF 300 to CHF 2,500, the monthly premium varies depending on the fund and franchise. As a frontier worker category G, you have the right to opt: you can remain enrolled in the Italian National Health Service (SSN) or join a Swiss LAMal. Many frontier workers choose LAMal for reduced costs and better coverage.

Phase 4: Opening a CHF/EUR bank account. Since the salary is in CHF (Swiss francs) and expenses in EUR (Euros) in Torre di Santa Maria, it's practical to open a current account with a Swiss bank (UBS, Credit Suisse, BNS) or an Italian bank with cross-border branches. Many frontier workers maintain an Italian account for family expenses and pay monthly from a Swiss account, monitoring the CHF/EUR exchange rate.

Phase 5: Income tax declaration 2024 and subsequent years. For the first declaration (2024 tax year, if you start in January), provide to the Italian Revenue Agency:

Swiss tax certificate (provided by the employer)
Copy of employment contract (dates, role, gross salary)
Copy of Permit G
Italian residence documentation (utility bills, anagraphic certificate, rental contract)

Fill out the model 730 (or ordinary declaration) and report income in the B section (dependent income), applying the foreign tax credit in the CE section (foreign tax credit). The Agency calculates the progressive IRPEF and deducts the Swiss tax paid.

Practical tools: calculators and comparators

Before signing the Swiss contract, simulate your net with the frontier worker salary calculator. Enter the gross salary, Swiss canton of work (each canton has different rates), status (new/old frontier worker), year: the tool calculates the monthly net, total tax burden, AVS/LPP contributions, and recoverable foreign tax credit in Italy.

If you're undecided between Permit G (frontier worker) and Permit B (Swiss resident), use the Permit G vs B comparator to see which regime is more beneficial in your specific case, considering income, transfer costs, and pension benefits.

Consult also the section Pension and pension (AVS/LPP) to understand how your Swiss contributions convert into a pension at maturity.

Conclusion: moving is worthwhile when the calculation is done

Living in Torre di Santa Maria and working in Switzerland offers concrete benefits: lower living costs in Italy, Swiss salary, robust pension rights. But success depends on the preparation phase. Before accepting the job offer, calculate the monthly net, check local living costs (rents, utilities, transportation), and simulate the first year of taxation. With the new 2024 agreement and the franchise, the tax burden is lighter than in the past. Use the available calculation tools and plan the income tax declaration at least three months before the deadline.

Frequently Asked Questions

From 1 January 2024, what changes for border workers living in Italy and working in Switzerland?: The new border agreement signed on 23 December 2020 enters into force. The main novelty is that the tax is withheld ONLY from Switzerland (no longer from both countries). Border workers in category G benefit from an annual tax-free exemption: €10,000 for those who start after 17 July 2023, €7,500 for those who were already border workers before (until 31 December 2033). The Italian tax credit is automatic through the CE framework of the tax return (model 730). This significantly reduces the tax burden compared to the previous regime.
What permission do you need to work in Switzerland as an Italian resident?: Permit G (Grenzgänger, frontier worker), issued by the Swiss State Secretariat for Migration (SEM). It is linked to an employment contract with a Swiss employer, it is personal, valid for 5 years and renewable. If you decide to transfer your residence to Switzerland, Permit G becomes Permit B (resident) and the tax regime changes: Swiss income becomes taxable entirely in Switzerland, without the intervention of Italy.
How does the tax return for border workers Italy→Switzerland work?: During work, the Swiss employer withholds the tax at source and pays the AVS/AI/LPP contributions. At the end of the year, submit the Italian tax return (730 or ordinary) with the EC framework for the foreign tax credit. Apply the deductible (€10,000 or €7,500) to the Swiss gross income, calculate the progressive Italian IRPEF, and subtract the credit from the Swiss tax paid. If the credit exceeds the IRPEF due, the differential is not carried over to other years.
How do frontier workers pay their AVS/LPP social security contributions?: The AVS/AI contributions (pension + disability) amount to 5.3% of the gross salary, borne by the employee. The employer pays the corresponding 5.3% as employer contributions, plus 1.1% (unemployment/occupational disease AD/AC, cap CHF 148,200). The accident insurance (LAINF) is borne by the employer (0.7-1.5%). The mandatory pension fund (LPP) is paid by the employee (7–18% depending on age, from the 25th year). These contributions grow a Swiss pension amount, independent of the Italian INPS, and are converted into a life annuity at retirement.
What is LAMal and how to choose a health insurance fund?: LAMal is the Swiss compulsory health insurance, individual (the employer does not provide it). You have to sign up for a Swiss cashier among the approximately 50 operators; the adult deductible varies between CHF 300 and CHF 2,500, the monthly premium depends on the chosen cashier and the deductible. As a category G border worker, you have the right of option: stay in the Italian National Health Service (SSN) or join a Swiss LAMal. The choice depends on costs, coverage and whether you have a dependent family.