Living in Lanzada, working in Graubünden: cross-border (cross-border guide)

Context

In Brief

• Tax withholding for border workers only occurs in Switzerland; Italy recognizes the tax credit through the 730 declaration
• From January 1, 2024, different thresholds apply: CHF 7,500 for historical border workers, CHF 10,000 for new ones
• G permit ensures access to Swiss AVS, LPP, LAMal with rights of choice

Key Facts

• What: Tax and pension regulation for Italy-Switzerland border workers
• When: New Border Workers Agreement in effect from January 1, 2024
• Where: Lanzada (Lombardy) → Grisons (Switzerland)
• Who: Border workers with G permit
• Threshold: CHF 7,500 (old border workers, transitional regime 2024-2033) / CHF 10,000 (new border workers)
• Basic Convention: Double taxation Italy-Switzerland, signed December 9, 1976

Living in Lanzada and working in Grisons as a border worker means operating in a regulatory framework defined by over 50 years of bilateral conventions between Italy and Switzerland. The Double Taxation Convention, signed on December 9, 1976, represents the pillar of transfrontier taxation: the employment income is taxed exclusively in the state where the border worker performs the activity, i.e. in Switzerland. Italy avoids double taxation through the tax credit in the income tax declaration (CE box of the 730 declaration). This means that the source tax withholding only occurs in Switzerland, where the tax is calculated on the pay slip according to the federal and cantonal rates of the Grisons.

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Operational details

Cost of living and economic benefits

Living in Lanzada, a mountainous commune in the Province of Sondrio in Lombardy, offers a significantly lower cost of living compared to the Swiss cantons of Grisons. Italian rents, food, and services are cheaper: this is the main economic advantage of residing in Italy and earning a Swiss salary. A border commuter benefits from a higher Swiss gross salary (compared to Italy) but supports Italian living costs (which are generally lower), creating a positive economic differential. In addition, the border commuter has access to a €7,500 (for historical border commuters, until the end of 2033) or €10,000 (for new border commuters) exemption, further reducing Italian taxable income and overall tax burden.

Costs and drawbacks of relocation

The first drawback is the daily distance. From Lanzada to the main workplaces in the Grisons (e.g., Davos, Chur), the journey is 50-100 km, typically requiring 1-2 hours by car. This entails significant fuel, vehicle wear, and unremunerated daily travel time costs. It is mandatory to have the Swiss highway vignette (approximately CHF 40/year) and potentially pay tolls for some border crossings. A commuter who travels 50 km/day should calculate at least CHF 300-500 per month for the overall car management.

Second drawback: the LAMal is mandatory. The Swiss health insurance has variable monthly costs (depending on the chosen health fund and deductible), plus a 10-20% share of medical expenses. A LAMal health fund with a CHF 300 deductible can cost CHF 300-400 per month (approximately €300-400), a sum that adds to Italian costs and represents an additional expense compared to Italian INPS coverage.

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Key points

Step 1: Find a job in the Grisons

The first step is to obtain a concrete job offer from a company in the Grisons. The company must offer to support the G Permit procedure with the Grisons cantonal authorities. It is not necessary to already reside in Switzerland: the G Permit can be requested once employment is found and the employment contract is signed.

Step 2: Request the G Permit

The employer sends the G Permit request (Permit to reside for border workers) to the SEM (State Secretariat for Migration) or the competent Grisons cantonal authority. The procedure typically takes 2-8 weeks. The border worker receives the G Permit, a document that allows daily circulation from the Italian home (Lanzada) to the Swiss workplace (Grisons). The permit has a multi-year validity and remains valid as long as the employment relationship persists.

Step 3: Anatomical registration and domicile in Lanzada

The border worker must register with the Lanzada municipality (Sondrio commune) as a resident. The following documents must be presented:

• Valid identity document (identity card or passport)
• Rental contract or property documentation
• Declaration of residence with the mayor

Registration is essential for tax purposes: the Italian Revenue Agency will use the Italian address for official communication and sending relevant obligations.

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