What is the difference between Permit G (border) and Permit B (temporary resident)?

The G (border) Permit allows you to work in Switzerland while maintaining your residence in Italy, with the obligation to return daily to the municipality of residence. Permit B is for temporary residents in Switzerland and allows you to live and work in Switzerland for up to 5 years renewable. Taxally, Permit G benefits from the transitional regime of the New Frontier Agreement (deductible CHF 7,500 or CHF10,000 depending on the date of first access); Permit B applies the ordinary Swiss rates without special border deductible.

Is the Swiss source tax final or can I recover it in Italy?

Tax at source is final in Switzerland (withheld by the employer on the paycheck). In Italy, in the 730 income tax return (CE framework), report the gross Swiss border income and obtain a tax credit (foreign credit) equal to the withholding already paid in Switzerland. It is not a "recovery", but a recognition of the payment made: it avoids double taxation. The net received monthly is already net of the Swiss withholding tax.

If I have income in both Switzerland and Italy, do I pay double taxation?

Employee income in Switzerland is not taxed in Italy thanks to the Italian-Swiss Convention of 9 December 1976: the Swiss source tax is recognised and credited as a credit in 730. If you have different incomes in Italy (rents, professional income, Italian pensions), these remain subject to ordinary Italian personal income tax. Border income and Italian income are taxed separately, without double taxation on Swiss labour income.

How much towards AVS and other contributions each month?

As a border employee, you pay 5.3% of AVS/AI/IPG on your monthly gross income. For example, on CHF 3,000 gross the contribution is about CHF 159. The employer contributes another share of 5.3% (total about 10.6%). You also pay AD/AC (1.1%, unemployment), LAINF (0.7–1.5%, accidents), LPP (7–18% by age group, from the 25th year). LAMal (health insurance) is paid directly to the chosen cashier, not deducted in a paycheck, but mandatory.

Is the Swiss LAMal mandatory for border crossers?

Yes, as an employee in Switzerland you have a legal obligation to enroll in health insurance (LAMal). It is not a “health tax”, but a mandatory insurance that covers medical expenses. Choose from CHF 300 to CHF 2,500 Swiss health coffers with excess (discovery) for adults. As a border worker, you theoretically have the right of option for particular situations, but the ordinary regime is enrollment in the Swiss system while working in Switzerland.

Frontiere Poggiridenti-Grisioni: taxation and permits (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 6 September 2026

Alpine landscape at the Italy-Switzerland border with misty valleys and green slopes at sunset.

Living in Poggiridenti and working in Graubünden: G permit, tax at source, New Frontier Agreement 2024 and AVS/LPP contributions. Practical guide and checklist.

Context

In a nutshell

Mandatory G leave to live in Poggiridenti (IT) and work in Grisioni (CH) with daily return
Withholding tax withheld in Switzerland, no double taxation (Convention 9 December 1976)
New Frontier Agreement in force from 1 January 2024: deductible CHF 7,500 (old) or CHF10,000 (new)
AVS/AI/IPG contributions: 5.3% employee; LAMal franchise CHF 300–2500

Key facts

What: Italy-Switzerland border tax and social security system
When: From 1 January 2024 (New Agreement in force; signed 23 December 2020)
Where: Poggiridenti (province Bergamo, Lombardy) → Graubünden (Switzerland)
Who: Frontier with G Permit
Convention: 9 December 1976 (avoids double taxation)
Deductible 2024: CHF 7,500 (border crossers pre-17 July 2023) or CHF10,000 (new)
Source tax: Calculated on gross minus deductible

Living in Poggiridenti, a municipality in the province of Bergamo, and working in the Graubünden means falling within the legal regime of the G Permit border worker. This permit allows access to the Swiss labour market and imposes the obligation to return daily to the municipality of residence in Italy. As of 1 January 2024, the New Frontier Agreement (signed on 23 December 2020 between Italy and Switzerland, ratified by Italy with Law 83 of 13 June 2023) has profoundly modified the taxation of frontier labour income. Withholding of the tax at source takes place exclusively in Switzerland;

Operational details

How does the taxation for cross-border workers work

The withholding tax for cross-border workers with Permit G is calculated in Switzerland based on the gross monthly (or annual) income according to the tax declaration calendar. After January 1, 2024, the Swiss federal rate applies to the gross income minus the allowance (CHF 7,500 for old cross-border workers, CHF 10,000 for new ones). Switzerland is not a member of the EU, so the tax regime is defined by the Bilateral Convention and the cantonal laws of Graubünden. The federal rate is determined by the Federal Tax Administration (FTA/ESTV); the canton applies additional cantonal and municipal rates.

In addition to the withholding tax, the cross-border worker pays mandatory social security contributions in Switzerland:

AHV/AIV/IPG: 5.3% of gross income (employee's share)
AD/AC (unemployment insurance): 1.1% of income, with an annual maximum of CHF 148,200
LAINF (accident insurance): 0.7–1.5% of income (covers the employee for work-related accidents)
LPP (second pillar, occupational pension): rate linked to age, approximately 7–18% per age group (mandatory from the age of 25)

Double taxation: the mechanism of the 1976 Convention

Italy does not apply an additional ordinary tax on cross-border work income because the Italian-Swiss Convention of December 9, 1976 prohibits it. In the Italian tax return (model 730), the cross-border worker reports the Swiss income in section CE and obtains a tax credit (called "foreign tax credit") equivalent to the amount already paid in Switzerland. This mechanism prevents the income from being taxed twice: Switzerland taxes with the withholding tax, Italy recognizes a credit. The net result is a single taxation in the country of work (Switzerland).

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Key points

Procedure and checklist: becoming a cross-border worker Poggiridenti-Grigioni

To start cross-border work, the following administrative steps are required:

1. Job search and Swiss contract The first step is to sign a work contract with a company located in the Grisons. The Swiss employer acts as an intermediary with the cantonal authorities to facilitate the application for the G Permit.

2. Registration with the canton of Grisons Under the guidance of the employer, the cross-border worker applies for the G Permit with the competent authorities of the Grisons (usually the cantonal office of economy and employment, or equivalent administrative body). The application includes proof of Italian residence (residence certificate of Poggiridenti) and the Swiss work contract.

3. Notification to the Italian INPS The cross-border worker registers with the Italian INPS (National Institute for Social Security) as a cross-border worker. This is crucial for the recognition of Swiss contributions paid during the years of work. The INPS provides a certificate documenting the AVS/AI/IPG payments in Switzerland, necessary for future Italian pension calculations or for applying for unemployment benefits in Italy after the termination of the employment relationship.

4. Maintaining residence and daily return The cross-border worker must maintain actual residence in Poggiridenti (census registration) and comply with the daily return obligation to Italy. Swiss and Italian authorities may verify compliance with this obligation through home inspections or analysis of transit data at border crossings (e.g., Brogeda, Gaggiolo, Ponte Tresa).

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Frequently Asked Questions

What is the difference between Permit G (border) and Permit B (temporary resident)?: The G (border) Permit allows you to work in Switzerland while maintaining your residence in Italy, with the obligation to return daily to the municipality of residence. Permit B is for temporary residents in Switzerland and allows you to live and work in Switzerland for up to 5 years renewable. Taxally, Permit G benefits from the transitional regime of the New Frontier Agreement (deductible CHF 7,500 or CHF10,000 depending on the date of first access); Permit B applies the ordinary Swiss rates w
Is the Swiss source tax final or can I recover it in Italy?: Tax at source is final in Switzerland (withheld by the employer on the paycheck). In Italy, in the 730 income tax return (CE framework), report the gross Swiss border income and obtain a tax credit (foreign credit) equal to the withholding already paid in Switzerland. It is not a "recovery", but a recognition of the payment made: it avoids double taxation. The net received monthly is already net of the Swiss withholding tax.
If I have income in both Switzerland and Italy, do I pay double taxation?: Employee income in Switzerland is not taxed in Italy thanks to the Italian-Swiss Convention of 9 December 1976: the Swiss source tax is recognised and credited as a credit in 730. If you have different incomes in Italy (rents, professional income, Italian pensions), these remain subject to ordinary Italian personal income tax. Border income and Italian income are taxed separately, without double taxation on Swiss labour income.
How much towards AVS and other contributions each month?: As a border employee, you pay 5.3% of AVS/AI/IPG on your monthly gross income. For example, on CHF 3,000 gross the contribution is about CHF 159. The employer contributes another share of 5.3% (total about 10.6%). You also pay AD/AC (1.1%, unemployment), LAINF (0.7–1.5%, accidents), LPP (7–18% by age group, from the 25th year). LAMal (health insurance) is paid directly to the chosen cashier, not deducted in a paycheck, but mandatory.
Is the Swiss LAMal mandatory for border crossers?: Yes, as an employee in Switzerland you have a legal obligation to enroll in health insurance (LAMal). It is not a “health tax”, but a mandatory insurance that covers medical expenses. Choose from CHF 300 to CHF 2,500 Swiss health coffers with excess (discovery) for adults. As a border worker, you theoretically have the right of option for particular situations, but the ordinary regime is enrollment in the Swiss system while working in Switzerland.