On which income does the €7,500 or €10,000 exemption of the 2024 New Deal apply?

The exemption applies **only to the health tax levy (LAMal)**, not to income tax. If you are a border worker registered before 17 July 2023, until 31 December 2033 you do not suffer a LAMal withdrawal on the part of gross income up to €7,500 per year. New frontier workers (registered after 17/7/2023) benefit from €10,000. This represents a monthly saving of about CHF 25-50, but does NOT exempt from AVS (5.3%), LPP (~8%), LAINF, AD and source tax.

Where is the tax calculated and paid at source: in Switzerland or in Italy?

The tax at source is calculated and paid **ONLY from Switzerland**, never from Italy. It is the Swiss employer who applies the monthly payroll withholding according to the cantonal rate (Graubünden). Italy DOES NOT apply additional taxes on the income from work of a border worker resident in Italy, thanks to the double taxation Convention of 9 December 1976. Italy recognises the tax credit in declaration 730 (EC framework); if the Swiss taxes paid are excessive, you get automatic refund.

Do I have to enroll in the AVS even if I live in Italy and have an Italian pension?

Yes, it is mandatory to register for the AVS from the first day of work in Switzerland. The AVS (Old Age and Survivors Insurance) is the first Swiss social security pillar, similar to the Italian public pension INPS. By paying 5.3% of gross income, you accumulate Swiss pension rights. Residing in Italy, you will still receive the AVS pension (65 years for men), paid directly by the Swiss institution. It is not necessary to move to Switzerland; the 1976 Italy-Switzerland Convention guarantees the recognition of rights also for residents in Italy.

What is LAMal and can I support myself with Italian Insurance (SSN)?

LAMal is the Swiss health insurance compulsory by federal law. As a border worker resident in Italy, you have the right of option: you can maintain Italian coverage (public SSN, free for employees) or subscribe to a private Swiss LAMal (cost CHF 200-500+ monthly deductible CHF 300-2500). The choice must be made within 30 days of the start of the work. If you maintain Italian coverage, communicate the choice to the employer; you will not pay Swiss LAMal contributions and benefits of the transitional exemption €7.500/€10,000.

How does the refund of the tax at source in the Italian declaration work?

In Form 730 (Employees) or Single Form, fill in the ** CE Framework ** declaring: Swiss Gross Income + Source Tax paid (in CHF, converted to EUR). The Revenue Agency calculates the Italian tax due (IRPEF: 23% up to €28,000, 35% up to €50,000, 43% over) and subtracts the Swiss tax credit. If the credit is greater than the Italian tax, you receive automatic refund (bank credit within 30-60 days). If the Italian tax is higher, you pay the difference.

Living in Spriana, working in Graubünden as a border worker (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 21 August 2026

Alpine mountain pass between Italian Alps and Swiss Grisons with border checkpoint in morning mist

Complete guide for frontier workers: New 2024 Agreement, tax at source only Switzerland, exemption €7,500-€10,000, G Permit, AVS/LPP and Italian refreshment.

Context

In a nutshell

New Frontier Agreement in force from 1 January 2024 with transitional exemptions until 2033
Tax at source withheld ONLY from Switzerland; refund recognized in Italy via CE 730 framework
G Permit and mandatory AVS registration; LAMal option for border workers residing in Italy

Key facts

What: Tax and social security regime for those residing in Italy (Spriana) and working in Switzerland (Graubünden)
When: Effective from 1 January 2024 (Agreement signed 23 December 2020, Law 83/2023 IT)
Where: Cross-border border Spriana (Lombardy) – Graubünden (Switzerland)
Who: Frontier workers (residents of Italy, employees of Switzerland); managed by SECO/AFC (CH) and INPS/Agenzia Entrate (IT)
Transitional exemption: €7,500 (frontier workers before 17/7/2023, until 2033) or €10,000 (new frontier workers)
Taxation: Source tax Switzerland only + recognised tax credit Italy (EC framework)

Those who live in Spriana, in the province of Sondrio, and work in Switzerland in the Graubünden operate under the specific regime of border workers governed by the New Frontier Agreement between Italy and Switzerland. This agreement, signed on 23 December 2020 and ratified in Italy by Law 83 of 13 June 2023, entered fully into force on 1 January 2024. The law establishes a fundamental principle: the tax at source on income from employment is withheld ONLY from Switzerland, never from Italy. This regime is guaranteed by the Double Taxation Convention

Operational details

Mechanism of the Italian tax refund and double taxation

Refreshment is the heart of the Italian border regime. Every fiscal year, the Italian Revenue Agency recognizes the tax credit for what has been paid to Switzerland on income from work. In model 730 (for employees) or in the Single Model, the borderman fills in the CE framework , where he reports:

Gross income declared to Switzerland
Swiss source tax paid (communicated by the employer or canton), converted from CHF to EUR

Italy calculates the theoretical tax due according to progressive IRPEF rates (23% up to €28,000, 35% from €28,001 to €50,000, 43% over €50,000) and subtracts the tax credit already paid to Switzerland. If this credit is higher than the Italian tax due, it automatically triggers the refund (bank credit within 30-60 days of approval). This mechanism is guaranteed by the 1976 Convention, which exclusively assigns Switzerland the right to tax income from work, while Italy renounces additional taxes on the same income.

Accumulation of AVS pension rights and Italy-Switzerland coordination

A relevant aspect is that the AVS contributions paid in Switzerland accredit Swiss pension rights for the border worker, even if permanently resident in Italy. The 1976 Italy-Switzerland Convention guarantees coordination between the two social security systems: contributions paid in one country are recognised

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 step-by-step: becoming a border worker Spriana-Grigioni

Phase 1: Basic documentation Collect Italian residence certificate (issued by the Spriana municipality) and employment contract signed with a registered employer in the Grigioni (Switzerland). The contract must be dated and signed by the employer.

Phase 2: Requesting the Permesso G Contact the State Secretariat for Migration (SEM) of the Grigioni canton, or have your employer submit the application on your behalf. Required documents:

Italian residence certificate (conform copy)
Employment contract signed
Copy of valid passport or ID card
Declaration form for border workers (available on the SEM Grigioni website)

The Permesso G is usually granted within 2-4 weeks if the documentation is correct. Once obtained, you will have the right to work legally in Switzerland.

Phase 3: Automatic enrollment in AVS From the first day of work, your employer will automatically enroll you in AVS at the competent compensation office (assigned based on the workplace canton). You will receive a unique AVS number and a registration notification. No further action is required from you; enrollment is automatic and mandatory.

Phase 4: Choosing health insurance (LAMal) Within 30 days of starting work, decide whether to maintain Italian coverage (public SSN, no additional costs) or enroll in a private Swiss LAMal. If you choose LAMal, select a Swiss insurance fund and a deductible (CHF 300-2500). Inform your employer (usually through the LPP or HR manager) of your choice. If you maintain Italian coverage, explicitly communicate this decision; you will not pay LAMal contributions in Switzerland (benefit from the LAMal transitional exemption CHF 7,500 or CHF 10,000).

…

Frequently Asked Questions

On which income does the €7,500 or €10,000 exemption of the 2024 New Deal apply?: The exemption applies **only to the health tax levy (LAMal)**, not to income tax. If you are a border worker registered before 17 July 2023, until 31 December 2033 you do not suffer a LAMal withdrawal on the part of gross income up to €7,500 per year. New frontier workers (registered after 17/7/2023) benefit from €10,000. This represents a monthly saving of about CHF 25-50, but does NOT exempt from AVS (5.3%), LPP (~8%), LAINF, AD and source tax.
Where is the tax calculated and paid at source: in Switzerland or in Italy?: The tax at source is calculated and paid **ONLY from Switzerland**, never from Italy. It is the Swiss employer who applies the monthly payroll withholding according to the cantonal rate (Graubünden). Italy DOES NOT apply additional taxes on the income from work of a border worker resident in Italy, thanks to the double taxation Convention of 9 December 1976. Italy recognises the tax credit in declaration 730 (EC framework); if the Swiss taxes paid are excessive, you get automatic refund.
Do I have to enroll in the AVS even if I live in Italy and have an Italian pension?: Yes, it is mandatory to register for the AVS from the first day of work in Switzerland. The AVS (Old Age and Survivors Insurance) is the first Swiss social security pillar, similar to the Italian public pension INPS. By paying 5.3% of gross income, you accumulate Swiss pension rights. Residing in Italy, you will still receive the AVS pension (65 years for men), paid directly by the Swiss institution. It is not necessary to move to Switzerland; the 1976 Italy-Switzerland Convention guarantees the
What is LAMal and can I support myself with Italian Insurance (SSN)?: LAMal is the Swiss health insurance compulsory by federal law. As a border worker resident in Italy, you have the right of option: you can maintain Italian coverage (public SSN, free for employees) or subscribe to a private Swiss LAMal (cost CHF 200-500+ monthly deductible CHF 300-2500). The choice must be made within 30 days of the start of the work. If you maintain Italian coverage, communicate the choice to the employer; you will not pay Swiss LAMal contributions and benefits of the transitio
How does the refund of the tax at source in the Italian declaration work?: In Form 730 (Employees) or Single Form, fill in the ** CE Framework ** declaring: Swiss Gross Income + Source Tax paid (in CHF, converted to EUR). The Revenue Agency calculates the Italian tax due (IRPEF: 23% up to €28,000, 35% up to €50,000, 43% over) and subtracts the Swiss tax credit. If the credit is greater than the Italian tax, you receive automatic refund (bank credit within 30-60 days). If the Italian tax is higher, you pay the difference.