Living in Livigno 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 enters into force on 1 January 2024.
• The Italy-Switzerland Double Taxation Convention was signed on 9 December 1976.
• Border crossers are subject to a tax at source in Switzerland, withheld only in Switzerland for border crossers.

Living in Livigno and working in Graubünden as a border worker

Living in Livigno and working in Graubünden as a frontier worker may seem like an attractive option for those looking to avoid high taxes in Italy. However, it is important to know the regulations and rules that govern this type of work.

The New Frontier Agreement, signed on 23 December 2020, enters into force on 1 January 2024. This agreement provides for the creation of a new category of frontier workers who will be able to work in Switzerland without being subject to Italian regulations.

The Italy-Switzerland Double Taxation Convention, signed on 9 December 1976, regulates tax regulations for frontier workers. This convention provides that frontier workers are subject to a tax at source in Switzerland, withheld only in Switzerland for frontier workers.

If you want to work in Graubünden as a frontier worker, it is important to know the rules for registering as a frontier worker.

Operational 📊 checklist for working in Graubünden as a border worker:

• Verify your citizenship and whether you are subject to the obligation to register as a frontier worker
• Check if the

Operational details

Key facts

• What: the New Frontier Agreement
• When: January 1, 2024
• Where: Graubünden
• Who: frontier workers
• Amount: not yet specified

On 1 January 2024, the New Frontier Agreement will enter into force, opening new perspectives for frontier workers who choose to live in Livigno and work in Graubünden. This agreement, which will replace the previous Frontier Contract, will introduce new rules and benefits for frontier workers wishing to work in the Swiss canton.

Who are the frontiersmen?

Border workers are workers who choose to work in the Swiss canton, but reside in another country. In this case, frontier workers who choose to work in Graubünden will enjoy a number of benefits, including the possibility of working without having to obtain a work visa and the possibility of enjoying a number of tax benefits.

Concrete examples

For example, if a frontier worker decides to work as a teacher in Lugano, he will enjoy a salary of about CHF 60,000 per year, plus a bonus of CHF 10,000 for his experience as a teacher. In addition, you will enjoy a number of tax benefits, such as the possibility of not paying taxes on your work income.

Operational Checklists

To enjoy the benefits of the New Frontier Agreement, frontier workers will have to meet a number of requirements, including:

• Have an employment contract with a Swiss employer
• Reside in another country

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Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

Practical analysis

Border workers working in Graubünden can benefit from a more favourable tax regime, thanks to the New Frontier Agreement. However, it is important to note that the Italy-Switzerland Double Taxation Convention may result in additional tax burdens.

Concrete example

Suppose we have a frontier worker who works in Graubünden and resides in Livigno. He earns 80,000 CHF a year and pays 20% tax in Switzerland. According to the New Frontier Agreement, it could benefit from a more favourable tax regime, with a tax rate reduced to 10%. However, the Italy-Switzerland Double Taxation Agreement could result in additional tax burdens, amounting to 10% of its revenue.

Double taxation agreement Italy-Switzerland

The Italy-Switzerland Double Taxation Convention was concluded on 19 March 2010 and entered into force on 1 January 2011. According to this agreement, Italian companies operating in Switzerland are subject to taxation in both Italy and Switzerland. This may result in additional tax burdens for border workers working in Graubünden and residing in Italy.

Operational Checklists

To avoid further tax burdens, frontier workers must be aware of the benefits and difficulties arising from their situation. Here is an operational checklist to help them navigate the world of cross-border work:

• Check the Italy-Switzerland Double Taxation Convention to avoid

For a precise net salary calculation, use our tax comparator: compare take-home pay between G and B permits with all 2026 deductions.