Living in Saint-Marcel, working in Valais as a border worker (cross-border guide)

Context

In brief

• G Permit mandatory: request at the Prefecture of the Aosta Valley
• Withholding tax: 4-10% deducted in Switzerland, compensated by Italian tax credit
• New Cross-Border Workers Agreement: effective from 1 January 2024, €10,000 exemption for new cross-border workers
• Mandatory AVS/LPP contributions, option right for LAMal

Key facts

• What: Working as a cross-border employee in Valais, residing in Italy
• When: New Agreement effective from 1 January 2024 (signed 23 December 2020)
• Where: Saint-Marcel (Aosta Valley) ↔ Valais (Switzerland)
• Who: EU/EEA citizens with a Swiss employment contract
• Permit: Category G, without a fixed expiration date
• Exemption: €10,000 for new cross-border workers; €7,500 for old cross-border workers (transitional 2024-2033)
• Rates: Withholding tax 4-10% in Switzerland, IRPEF 23-43% in Italy (compensated by foreign tax credit)

Saint-Marcel is a small municipality in the Aosta Valley, naturally within the commuting range of the Canton of Valais, where dozens of cross-border workers find employment in hospitals, public administrations, and private companies. If you choose to maintain your residence in Saint-Marcel while working in Valais, your status changes radically: you become a regular cross-border worker with a G Permit, subject to specific tax rules, social contributions, and administrative procedures completely different from those who work in Italy. The New Cross-Border Workers Agreement, which came into force on 1 January 2024, has reshaped the calculation of taxes and refunds for all Italy-Switzerland cross-border workers. Understanding these mechanisms is essential before taking the step towards the Swiss job market.

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Operational details

How Border Taxation Works

The taxation of a border worker who lives in the Aosta Valley and works in the Valais follows the principle of "taxation in the canton of work": it is Switzerland that taxes your income from employment. The Convention to Avoid Double Taxation between Italy and Switzerland, signed on December 9, 1976, provides that you pay taxes IN SWITZERLAND and that Italy recognizes a tax credit equal to the amount paid in Switzerland, avoiding formal double taxation.

Concretely: Switzerland applies the tax at source directly on the paycheck. For new frontier workers, the first €10,000 gross per year is exempt. On the surplus part, the rate is determined by Switzerland on the basis of the total salary and the Canton of Italian residence, varying between 4% (for low incomes) and 10% (for higher incomes). In Italy, you will have to fill in the Income Statement (Form 730 or PF Income) and indicate the income received in Switzerland in the CE Framework. In the EC Framework you declare the amount of source tax paid in Switzerland, and the Italian State deducts it from your total tax debt, automatically calculating the refund (rebate) if due.

AVS, LPP and Compulsory Insurance contributions

As a border worker, you are obliged to pay Swiss contributions that go directly from the paycheck:

• AVS/AI/IPG: 5.3% of the gross salary for old-age, disability and indemnity insurance

Useful tools for your case

To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.

Key points

Procedure to Obtain the Permit G

The procedure to request the Permit G to work in Valais is divided into two phases: an Italian and a Swiss one. You cannot submit the application independently — it is the Swiss employer who initiates the process.

Italian Phase: The Swiss employer submits a hiring application to the Prefecture of the Italian province of residence (for Saint-Marcel: Prefecture of Valle d'Aosta, Immigration Sector). The application must include the signed employment contract, a formal declaration from the employer on the availability of the job position, your passport, and personal documentation. The Prefecture assesses whether the Italian labor market has Italian candidates for that position; if there are no significant obstacles, the authorization is granted within 2-3 weeks.

Swiss Phase: The permit is completed at the State of Valais (Immigration Office) or the State Secretariat for Migration (SEM). The employer registers the Italian authorization with the Valais cantonal authorities and receives the formal confirmation of the Permit G. The permit remains subject to the maintenance of the employment contract: if you lose your job, you have a short period (typically 4 weeks) to find new employment in Switzerland, otherwise, you must return to Italy.

Required Documents and Checklist

Before starting the procedure, your employer will need:

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