Living in Grosio 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 and will be in force from 1 January 2024.
• The Italian-Swiss Double Taxation Convention was signed on 9 December 1976.
• The deductible of the new agreement is €10,000 for new frontier workers.

Key facts

• What: New Frontier Agreement
• When: 23 December 2020
• Where: Switzerland
• Who: Ticino border guards
• Amount: €10,000

The New Frontier Agreement provides for a deductible of €10,000 for new frontier workers, who will thus be able to work in Switzerland without having to pay the tax at source. This agreement was signed on 23 December 2020 and will be in force from 1 January 2024.

The Italian-Swiss Double Taxation Convention was signed on 9 December 1976 and provides for the non-taxability of border workers' services. This agreement was made to avoid double taxation of frontier workers' incomes, ensuring that they can work in Switzerland without having to pay the same taxes in both countries.

The new agreement will be managed by the AFC/ESTV, which will monitor and control the application of the rules of the New Frontier Agreement. Ticino border workers who intend to work in Switzerland will have to submit an application for authorisation to the AFC/ESTV, which will assess their situation and decide whether or not to grant authorisation.

For example, if a border worker from Ticino intends to work in Graubünden, he can

Operational details

The New Frontier Agreement provides for a deductible of €10,000 for new frontier workers, who will thus be able to work in Switzerland without having to pay the tax at source. This agreement will be managed by the AFC/ESTV and will be in effect from 1 January 2024.

The Italian-Swiss Double Taxation Convention was signed on 9 December 1976 and provides for the non-taxability of border workers' services. This agreement was signed by the Italian government and the Swiss Confederation.

The new agreement will take effect from 1 January 2024 and will be managed by the AFC/ESTV. This means that new frontier workers will be able to work in Switzerland without having to pay the tax at source.

The New Frontier Agreement was signed on 23 December 2020 and will be in force from 1 January 2024.

The effects of the agreement will be felt in particular by the border municipalities of Ticino, such as Grosio, Bellinzona and Lugano, where many Italians work and reside. According to AFC/ESTV data, 1,800 work permits for Italian border workers were issued in 2022.

The new agreement will be managed by the AFC/ESTV, which will provide Italian border guards with useful information on the regulations and procedures to be followed. Data subjects will be able to consult the AFC/ESTV website to download the application forms and to receive up-to-date information.

For Italian border workers who intend to work in Switzerland, it is important to check whether they meet the

Recommended tools

For an updated estimate, use the net salary calculator and the CHF-EUR exchange comparator.

Key points

To take advantage of this opportunity, you must submit your G or B permit application to the AFC/ESTV by December 31, 2023. The procedure is simple and can be done online.

Once the application is submitted, you will be able to work in Switzerland without having to pay the tax at source. It is important to note that the deductible of €10,000 is only valid for new frontiersmen. For example, if you earn a monthly salary of €5,000, you might avoid paying tax at source for the first 10 months of work.

If you are already a border worker, it is important to check the conditions for the €7,500 deductible. According to the rules of 15 December 2022, frontier workers working in Switzerland can benefit from a deductible of €7,500 if their salary is less than €15,000 per month.

For more information, you can consult the AFC/ESTV website or contact customer service. The salary calculator is a useful tool to understand how the deductible works and how it applies to the salary amount.

For example, if you earn a salary of €4,000 per month and work in Switzerland for 6 months, the deductible of €7,500 could cover the entire amount of the salary, excluding tax at source.

Here is a checklist to check the conditions for the deductible:

• Is it a new border crossing or already border crossing?
• Is the salary less than €15,000 per month?
• It is possible to submit the application for permit G or B within