What is the difference between Permit G and B for border workers in Graubünden?

The G Permit (Grenzgänger) is intended for commuters who return to Italy daily or weekly. It allows work and annual renewal, ideal for those who live in Ponte. Permit B is for long-term residents in Switzerland (≥12 months), requires home transfer and is subject to quotas. Those who live in Italy almost always choose G.

How does the tax credit work to avoid double taxation?

Switzerland withholds the tax at source on the paycheck. Italy recognizes it as a credit in 730 (EC framework). If the Swiss rate is higher than the applicable Italian IRPEF, the frontier worker gets a rebate. If less, pay the difference by declaration. The mechanism is automatic if you fill in the CE box correctly.

Is the LAMal mandatory for G border workers or can I waive it?

LAMal is mandatory for border workers working in Switzerland, including G. However, you can choose to submit to Italian cover while keeping the Swiss LAMal as a backup. In practice, almost no frontier worker gives up: Swiss premiums and performance are better. The choice must be made within 3 months of the start of work.

What income tax rate is applied to me as a G border worker living in Ponte?

IRPEF applies on the basis of Italian residence and declared worldwide income. For incomes up to €28,000, it's 23%. From €28,001 to €50,000, it is 33%. Above €50,000, it's 43%. The new agreement provides for a deductible of €10,000 for new frontier workers, reducing taxable income. Regional and municipal rates are added (Lombardy average: 1.73% + 0.4%-0.8%).

When do I have to submit the 730 declaration as a frontier and how do I manage the CE framework?

The 730 must be presented from February to November of the year following the one in which you worked (or through CAF in January-March). The CE framework collects Swiss income, withholdings and receivables. Fill in by October 31 to receive refills by May-June. Delays in submission result in forfeiture of the right to reimbursement. Rely on a CAF specialised in border workers.

Living in Ponte in Valtellina, working in Graubünden

Di Redazione Frontaliere Ticino · Published on 6 September 2026 · Updated on 25 September 2026

Alpine panorama of Ponte in Valtelline valley with views toward Graubünden, border mountain landscape for cross-border workers.

Complete guide for border workers: source tax, G Permit, €10k deductible, AVS/LAMal, cost of living. Since 2024.

Context

In brief

New Cross-Border Workers Agreement effective from 1 January 2024
Exemption threshold €10,000 for new cross-border workers
Withholding tax deducted ONLY in Switzerland
Ponte in Valtellina: ideal area for cross-border workers in the Graubünden

Key facts

What: New Cross-Border Workers Agreement between Switzerland and Italy
When: From 1 January 2024
Where: Cross-border workers Italy-Switzerland in border areas (e.g. Ponte in Valtellina → Graubünden)
Who: SECO, Agenzia Entrate, cantonal administrations
Exemption threshold: €10,000 for new cross-border workers, €7,500 for veterans (transitional regime 2024-2033)

From 1 January 2024, the new Cross-Border Workers Agreement between Switzerland and Italy has renewed the rules for those living in Ponte in Valtellina and working in the Graubünden with a Permit G. This combination — Italian residence in a mountainous area with a low cost of living, Swiss work in convertible francs — represents an increasingly attractive opportunity. However, the tax reform introduces changes that every cross-border worker must understand: from withholding tax to annual exemption, from AVS/LPP contributions to Italian declarations.

The key element is the withholding tax. Here is a common misunderstanding: it is not deducted in both countries, as sometimes believed. The withholding tax is deducted exclusively by Switzerland. Italy avoids double taxation through a tax credit, reported in the CE section of the 730 form. For the cross-border worker, this means simplified tax administration: a single withholding, no parallel Italian withholding, compensation through the annual declaration.

The exemption threshold is the second key element. With the new agreement, new cross-border workers benefit from €10,000 of annual tax-free income, while those who were already cross-border workers before 17 July 2023 have €7,500 with transitional protection until 2033. This tax-free income bracket directly impacts the calculation of Swiss withholding tax and, consequently, the overall economic convenience.

Ponte in Valtellina, a mountainous commune in Sondrio on the border, represents for many the ideal bridgehead: located a few kilometers from the Graubünden, it allows access to the Graubünden labor market while maintaining a residential base in Italy with rents and services significantly cheaper than those in Ticino or Swiss urban centers. The Permit G facilitates this model, allowing regular commuting without the need for permanent relocation to Switzerland.

Swiss Social Contributions: The Real Burden

Working in the Graubünden, the cross-border worker pays contributions exclusively to the Swiss system: AVS/AI/IPG at 5.3% of gross (employee burden), AD/AC at 1.1%, LAINF between 0.7% and 1.5%, and LPP (company pension) between 7% and 18% depending on age and professional sector. These burdens are deducted from the Swiss paycheck, not the Italian one. The Italian INPS receives only symbolic payments; most of the benefits come from the AVS, guaranteeing the future pension from the Swiss source.

Operational details

Living in a border area: the economic differential

Living in a border area such as the one between Ponte in Valtellina and the Graubünden allows access to housing prices significantly lower than those of major Swiss urban centers. Rents, utilities, and basic services reflect the Italian mountain-peripheral market. A cross-border worker can reduce housing costs by 40-50% compared to permanent residence in Switzerland, with the same quality of living. Multiplied by the duration of a career, this differential becomes economically significant.

Offsetting this is the commuting factor: the distance from major Swiss employment hubs requires travel time that varies depending on the specific destination and road conditions. Fuel costs, car maintenance, and public transport subscriptions add up. However, even considering these additional expenses, the annual economic balance remains favorable compared to permanent relocation to Switzerland.

LAMal and health protection: option opportunities

The LAMal (mandatory Swiss health insurance) is guaranteed to G cross-border workers but allows choices. Adult deductibles range from CHF 300 to CHF 2,500 depending on the policy. Swiss premiums are tax-deductible from gross income. Those who opt for Italian insurance retain the right to LAMal as a backup, creating a de facto double protection.

Enrollment in LAMal requires: employment contract, G permit, identity document. Enrollment must be done within 3 months of the start date; delays result in retroactive penalties.

Annual declarations and refunds: the tax cycle

The cross-border worker residing in Italy pays withholding tax in Switzerland (automatically in the paycheck), then declares income through the Italian model 730. In the CE section (foreign employment income) are reported:

Annual gross Swiss income
Swiss withholding tax paid
Tax credit (anti-double taxation mechanism)

The Italian administration compares the Swiss withholding tax with the Italian IRPEF rate (23% up to €28,000, 33% up to €50,000, 43% beyond). If the Swiss withholding exceeds the IRPEF due, a refund is granted. Timing: declaration from February, refunds from May-June.

Comparison scenario: advantages of the cross-border model from a border area

A hypothetical scenario illustrates the overall advantage. A cross-border worker who earns in Swiss francs and lives in an Italian border area benefits from:

Swiss withholding tax deducted exclusively in Switzerland (no duplication)
€10,000 exemption on Italian taxable income (new cross-border workers from 2024), significantly reducing IRPEF
Housing costs 40-50% lower than permanent residence in Switzerland
Full AVS/LPP contributions in Switzerland, ensuring a Swiss pension
Potential tax refund through 730, if Swiss withholdings > IRPEF due

This combination of factors creates an overall economic advantage of 15-20% on net availability compared to an equivalent Italian salary, while maintaining residence in Italy.

Key points

Step-by-step for the G Permit in Graubünden

1. Job search and contract signing: Identify an employer in Graubünden. Sign the employment contract.

2. Work permit application: The employer submits the application to the SEM (State Secretariat for Migration) of the Canton of Graubünden. Processing time: 2-3 weeks.

3. Registration with the Italian municipality of residence (Ponte): Request the G Permit form from your municipality in Ponte in Valtellina. Submit the employment contract + marital documentation (if married) + residence certificate. Processing time: 1-2 weeks.

4. Italian tax registration: At the Tax Office of the Province of Sondrio, register as a cross-border worker. Provide the ISTAT communication number from the municipality. Processing time: a few days.

5. LAMal registration: Request the form from the employer or directly from a Swiss health insurance company. Sign and return within 3 months from the start date. Processing time: immediate delivery, processing 5-10 days.

6. First AVS contribution payment: With the first paycheck, deductions will begin. Keep pay stubs and documentation.

7. Italian 730 tax return: From February of the following year, complete the 730 form at a CAF or a specialized accountant for cross-border workers. Report Swiss income in the CE section.

Overall timeline: From contract signing to the first working day with a valid G Permit: 6-8 weeks. Variables: speed of the Graubünden SEM, efficiency of the Italian municipality, late emails and communications.

Essential documents to prepare

Passport/Identity card (valid for at least 5 years)
Italian residence certificate (recent, not older than 3 months)
Employment contract (signed by employer and employee)
Medical fitness certificate (for some sectors)
Marital documentation (copy of marriage certificate, if married)
Italian bank account statement (proof of financial stability, not always required but useful)
Precise residence address in Ponte in Valtellina

Useful tools and contacts

Italian Revenue Agency (IT): Official website section for cross-border workers for 730 guide and CE section. Free download of instructions and worksheets.

Graubünden SEM (CH): Office responsible for work permits and G Permits. Email: online contact form, response time 3-5 days.

Specialized CAF for cross-border workers: In the Province of Sondrio, there are accounting firms that exclusively handle cross-border declarations. Average cost: €400-800 for initial setup, then €150-300 annually for the declaration.

Cross-border salary calculator: Simulate your net paycheck in Graubünden based on gross salary, canton, age, and family situation.

Job listings: Search for job opportunities in Graubünden and border areas, filterable by sector and destination.

Critical deadlines for the first year

Day 1 (start of work): G Permit active
Within 3 months: LAMal registration (penalty for late registration)
By the end of February of year N+1: Submit 730 (acceptable until November with tolerance)
May-June N+1: Possible refund (tax credit granted)
April of year N+1: Deadline for payment of Italian INPS contributions for the first year (minimum symbolic for cross-border workers)

Deciding to live in Ponte in Valtellina and work in Graubünden is an economically advantageous choice, especially with the new tax benefits from 2024. However, administrative success depends on the accuracy of the initial steps. An error in the G Permit registration or in the CE section of the declaration can delay benefits for months. Consult a specialized accountant before signing the contract and request written confirmation that the employer is registered with the Swiss employers' registry for G cross-border workers.

Start now: simulate your net paycheck in Graubünden here and check if the cross-border model is convenient for your specific situation.

Frequently Asked Questions

What is the difference between Permit G and B for border workers in Graubünden?: The G Permit (Grenzgänger) is intended for commuters who return to Italy daily or weekly. It allows work and annual renewal, ideal for those who live in Ponte. Permit B is for long-term residents in Switzerland (≥12 months), requires home transfer and is subject to quotas. Those who live in Italy almost always choose G.
How does the tax credit work to avoid double taxation?: Switzerland withholds the tax at source on the paycheck. Italy recognizes it as a credit in 730 (EC framework). If the Swiss rate is higher than the applicable Italian IRPEF, the frontier worker gets a rebate. If less, pay the difference by declaration. The mechanism is automatic if you fill in the CE box correctly.
Is the LAMal mandatory for G border workers or can I waive it?: LAMal is mandatory for border workers working in Switzerland, including G. However, you can choose to submit to Italian cover while keeping the Swiss LAMal as a backup. In practice, almost no frontier worker gives up: Swiss premiums and performance are better. The choice must be made within 3 months of the start of work.
What income tax rate is applied to me as a G border worker living in Ponte?: IRPEF applies on the basis of Italian residence and declared worldwide income. For incomes up to €28,000, it's 23%. From €28,001 to €50,000, it is 33%. Above €50,000, it's 43%. The new agreement provides for a deductible of €10,000 for new frontier workers, reducing taxable income. Regional and municipal rates are added (Lombardy average: 1.73% + 0.4%-0.8%).
When do I have to submit the 730 declaration as a frontier and how do I manage the CE framework?: The 730 must be presented from February to November of the year following the one in which you worked (or through CAF in January-March). The CE framework collects Swiss income, withholdings and receivables. Fill in by October 31 to receive refills by May-June. Delays in submission result in forfeiture of the right to reimbursement. Rely on a CAF specialised in border workers.