How does taxation change with the New Frontier Agreement that came into force on 1 January 2024?

From 1 January 2024, the New Agreement (signed 23 December 2020) introduces progressive income exemptions: CHF 7,500 for frontier workers already employed before 17 July 2023 (transitional regime until 2033), CHF 10,000 for new frontier workers. The tax at source remains withheld exclusively in Switzerland by AFC/ESTV, but the tax credit in Italy via the EC framework of 730 is guaranteed by the Convention of 9 December 1976. These exemptions reduce the Swiss taxable income and, consequently, the monthly withholding.

Do I have to pay AVS and LPP contributions if I work in Valais with a G Permit?

Yes, mandatory contributions: AVS/AI/IPG 5.3% (employee), AD/AC 1.1% on salaries up to CHF 148,200, LAINF 0.7–1.5%, LPP 7–18% by age group from 25 years. These are deductible from the Swiss tax base. They guarantee Swiss old-age annuity, disability and accident coverage. If you also paid into INPS before getting the G Leave, you can request a refund for the excess periods.

How does health insurance (LAMal) work for border workers living in Pollein?

Border workers with G Permit have the right of option: maintain Italian INPS coverage (continuity with the Italian system) or subscribe to private Swiss LAMal with a CHF 300-2,500 adult deductible. The choice must be notified within 3 months of the issuance of the G. LAMal Permit covers services in Switzerland and, thanks to bilateral agreements, often also in Italy; it has higher costs than INPS but broader services in Switzerland.

Can I claim a tax credit in Italy if the tax at source is withheld in Switzerland?

Yes, the Italian-Swiss Convention of 9 December 1976 avoids double taxation. Fill in the CE framework of the Italian declaration 730 attaching the certification of withholding by the Swiss AFC/ESTV. The Revenue Agency applies the tax credit by comparing the Italian personal income tax rate (23–43%) with the Swiss withholding tax: it reimburses the difference if the withholding tax is higher than the Italian tax due.

What documents are needed for the G Leave application at the Valais SEM?

Copy of the employment contract, letter from the employer confirming the employment, certificate of Italian residence from the municipality of Pollein, valid identity document, completed VAM form. Processing time: 2–4 weeks with complete documentation. Once obtained, register with INPS within the established deadlines. Permit G is renewable annually if employment continues.

Living in Pollein and working in Valais as a border worker (cross-border guide)

Di Marco Ferrari · Published on 25 August 2026

Alpine hiking path overlooking Swiss and Italian peaks at sunset, border region landscape

Italy-Switzerland border in the Valais: tax rules 2024, G permit, tax at source, AVS, LPP, LAMal, refunds and practical procedures.

Context

In brief

Frontaliers Italy-Valais regulated by 1976 Convention and New Agreement effective from January 1, 2024
Source tax withheld in Switzerland; tax credit in Italy via Schedule CE of 730
Permit G: application to SEM/VAM with employment contract and documentation
AVS/LPP/LAMal: mandatory rights and contributions for frontaliers

Key facts

What: Frontalier tax regime Italy-Switzerland with income exemptions
When: New Agreement in force from January 1, 2024 (signed December 23, 2020)
Where: Pollein (Aosta Valley, Italy) — Valais (Switzerland), cross-border
Who: Frontaliers holding Permit G
Convention: Signed December 9, 1976, prevents double taxation
Source tax: Withheld exclusively in Switzerland, not in Italy
Exemption: CHF 7,500 (existing frontaliers pre-7/17/2023) or CHF 10,000 (new)

Those living in Pollein, a small municipality in the Aosta Valley, and working in the Swiss Valais face a specific tax regime regulated by the Italy-Switzerland Convention of December 9, 1976, and the New Frontalier Agreement that entered into force on January 1, 2024. The basis of this regime is to avoid double taxation between the two countries: source tax is withheld exclusively in Switzerland by the Federal Tax Administration (AFC/ESTV), while Italy guarantees a tax credit through the 730 declaration by completing Schedule CE.

To work legally in Valais as an Italian resident, you need Permit G (frontalier) issued by the Swiss State Secretariat for Migration (SEM) and the Migration Office (VAM) of the destination canton. The procedure requires an employment contract, a letter from the employer, and Italian residency documentation.

…

Operational details

Frontier's social and social rights

Those who work in the Valais with Permit G pay mandatory contributions to the Swiss system AVS (Old Age and Survivors Insurance), AI (Disability Insurance) and IPG (Loss of Earnings Allowance), in the total amount of 5.3% borne by the employee. These payments guarantee the Swiss old-age pension from the legal age (currently 65 for men, 64 for women), as well as coverage for disability and death. Contributions are fully deductible from the Swiss tax base.

The second mandatory pillar, LPP (Occupational Pension Plan), comes into play when the annual salary exceeds CHF 21,330. The rate varies by age group from 25 years (7% up to 35 years, progressively up to 18% over 55 years). LPP contributions are also deductible from Swiss taxes. Frontier workers who have paid in AVS/LPP in Switzerland and INPS in Italy can request INPS refunds for the periods in which they contributed to the Italian system before moving.

Health insurance: choice between Swiss and Italian system

Border workers with G Permit have the right of option on health coverage: they can maintain Italian insurance through INPS (continuity of Italian social security) or sign a LAMal (private Swiss health insurance) with deductibles ranging from CHF 300 to CHF 2,500 for adults, depending on the product chosen.

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

Procedure for Obtaining Permit G

The application for Permit G is submitted to the Swiss State Secretariat for Migration (SEM) through the Migration Office (VAM) of the Valais canton where the work activity takes place. Required documents: copy of the employment contract, employer's letter confirming employment, Italian residence certificate (issued by the Pollein municipality), valid identity document, completed VAM application form. SEM examines the application and issues Permit G, usually granted within 2–4 weeks if documentation is complete. Once in possession of Permit G, the cross-border worker must register with the Italian INPS within the prescribed terms to maintain mandatory enrollment in the Italian social security system (optional if the Swiss system is chosen, but highly recommended). Permit G is generally renewable annually if prerequisites persist (continuous employment, stable residence). Upon termination of the employment relationship, the cross-border worker has a tolerance period before having to leave Swiss territory; in cases of short-term unemployment, Swiss unemployment benefits (unemployment insurance, AD/AC 1.1%) may apply if enrolled.

…

Frequently Asked Questions

How does taxation change with the New Frontier Agreement that came into force on 1 January 2024?: From 1 January 2024, the New Agreement (signed 23 December 2020) introduces progressive income exemptions: CHF 7,500 for frontier workers already employed before 17 July 2023 (transitional regime until 2033), CHF 10,000 for new frontier workers. The tax at source remains withheld exclusively in Switzerland by AFC/ESTV, but the tax credit in Italy via the EC framework of 730 is guaranteed by the Convention of 9 December 1976. These exemptions reduce the Swiss taxable income and, consequently, the
Do I have to pay AVS and LPP contributions if I work in Valais with a G Permit?: Yes, mandatory contributions: AVS/AI/IPG 5.3% (employee), AD/AC 1.1% on salaries up to CHF 148,200, LAINF 0.7–1.5%, LPP 7–18% by age group from 25 years. These are deductible from the Swiss tax base. They guarantee Swiss old-age annuity, disability and accident coverage. If you also paid into INPS before getting the G Leave, you can request a refund for the excess periods.
How does health insurance (LAMal) work for border workers living in Pollein?: Border workers with G Permit have the right of option: maintain Italian INPS coverage (continuity with the Italian system) or subscribe to private Swiss LAMal with a CHF 300-2,500 adult deductible. The choice must be notified within 3 months of the issuance of the G. LAMal Permit covers services in Switzerland and, thanks to bilateral agreements, often also in Italy; it has higher costs than INPS but broader services in Switzerland.
Can I claim a tax credit in Italy if the tax at source is withheld in Switzerland?: Yes, the Italian-Swiss Convention of 9 December 1976 avoids double taxation. Fill in the CE framework of the Italian declaration 730 attaching the certification of withholding by the Swiss AFC/ESTV. The Revenue Agency applies the tax credit by comparing the Italian personal income tax rate (23–43%) with the Swiss withholding tax: it reimburses the difference if the withholding tax is higher than the Italian tax due.
What documents are needed for the G Leave application at the Valais SEM?: Copy of the employment contract, letter from the employer confirming the employment, certificate of Italian residence from the municipality of Pollein, valid identity document, completed VAM form. Processing time: 2–4 weeks with complete documentation. Once obtained, register with INPS within the established deadlines. Permit G is renewable annually if employment continues.