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 (cross-border guide)

Di Marco Ferrari · Published on 25 August 2026

Lake Lugano view with Grisons 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 December 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 Grisons), 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, 35% 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.

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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.

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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
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, an
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 dep