Prata Camportaccio border: living and working (cross-border guide)

Context

In a nutshell

• New Frontier Agreement in force from 1 January 2024: €10,000 deductible for new frontier workers
• Permit G allows work in the Graubünden and permanent residence in Prata Camportaccio
• Withholding tax withheld only in Switzerland: no double taxation
• AVS/LPP/LAMal guaranteed in Switzerland

Key facts

• What: Living in Prata Camportaccio and working in the Graubünden with G Permit
• When: New Agreement in force from 1 January 2024
• Where: Prata Camportaccio (Sondrio, IT) ↔ Grisioni (CH)
• Who: New border guards (after 17/7/2023) and old border guards
• Excess: €10,000 per year (new frontier workers); €7,500 (old, 2024–2033)
• Source tax: Withheld only in Switzerland
• Italian personal income tax: 23% up to €28,000, 35% up to €50,000, 43% over

How the New Frontier Agreement works

The New Frontier Agreement, in force from 1 January 2024, simplifies the tax regime for those who work in Switzerland and reside in Italy. The tax at source is withheld only from Switzerland on income from employment; Italy recognises the tax credit in Form 730 (EC framework) to avoid double taxation. New frontier workers (registered after 17 July 2023) benefit from a deductible of €10,000 per year, while old frontier workers (already registered before this date) have an exemption of €7,500 with a transitional regime until 2033.

For those who reside in Prata Camportaccio and work in the Graubünden, this structure means that the

Operational details

Social contributions and social security protection

All border workers with a G Permit pay Swiss social contributions at federal and cantonal rates. The employee pays the AVS/AI/IPG at 5.3% of the gross salary, plus accident insurance (LAINF) between 0.7% and 1.5% depending on the sector, and contributions to the LPP pension fund (second pillar) between 7% and 18% by age group (from 25 years onwards). These amounts are deducted from the Swiss paycheck, as for any Swiss employee.

LAMal health insurance is also mandatory for border workers with G Permit. The border worker has the right of option: he can subscribe to a Swiss LAMal (with a deductible from CHF 300 to CHF 2,500 for adults) or continue with an Italian insurance, if recognised as equivalent. Many border crossers choose the Swiss LAMal because it also covers services in Italy and guarantees complete protection.

Cost of living and housing savings

Prata Camportaccio offers a lower cost of living than Swiss Ticino. Rentals and real estate prices are significantly lower than in Ticino cities such as Lugano, Bellinzona or Mendrisio. This housing advantage partially compensates for the expenses of commuting to the Graubünden. A border worker who resides in Prata Camportaccio spends less on rent or mortgage than he would spend living in Ticino, while working with Swiss wages. However, it is necessary to consider the

Useful planning tools

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

Key points

Checklist: the steps to transfer

1. Obtain a job contract in the Grisons — The first step is to find an employer in the Grisons. Once you receive a job contract (preliminary or final), proceed to the next steps. 2. Request the G Permit — Go to the prefecture or police station in the province of Sondrio with the following documents: passport/identity card, Swiss employment contract, residence certificate for Prata Camportaccio (or rental/property deed), health documentation (certificate of good health), extract of pending charges at the Carabinieri. The G Permit is usually issued within 30-45 working days. 3. Register with the Central Compensation Office (UCC) of Switzerland — Once employed, the employer registers the border worker with the UCC. At the same time, the border worker must register with the Italian National Institute of Social Security (INPS) as a border worker for obtaining the separate management number or as an insured person under the mandatory management, depending on the contractual category. 4. Open a Swiss bank account — Many employers pay salaries on a Swiss account. It is recommended to open an account with a bank in the border area (Ticino or Grisons) to facilitate currency exchange operations and cross-border transactions. 5. Declare Italian residence — Register with the Prata Camportaccio Anagrafe at the local municipality. This registration is necessary for tax and administrative purposes. 6. Submit the annual tax return — Every year, the border worker must submit the model 730 to the Italian Revenue Agency (or through a Tax Advisor), indicating the income received from Switzerland, the withholding tax paid, and requesting the tax credit in the CE framework to avoid double taxation.

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