What are the differences between the old and the new border agreement?

The New Frontier Agreement (which entered into force on 1 January 2024) introduces an exemption: new frontier workers exempt EUR 10,000 per year from Swiss taxation. Old frontier workers (already frontier workers before 17 July 2023) benefit from EUR 7,500 per year until 2033, under a progressive regime. The withholding tax continues to be withheld only in Switzerland, as regulated by the Italian-Swiss Convention of 9 December 1976. Before 2024, the system was less favorable.

How does the Italian tax credit work for those who work in Switzerland?

Italy does not apply taxes on the income from work of border workers. However, to verify that Switzerland has withheld the correct amount, you must submit Form 730 with the CE framework (showing the taxes paid in Switzerland) each year. The Revenue Agency calculates the tax credit automatically. If Switzerland withheld more than due according to Italian rates, you receive a refund.

How many years of AVS contributions am I entitled to a Swiss pension?

AVS pension typically requires 43 years of contributions for men and 42 years for women, counting from 21 years of age. As a border worker, every year of work in Switzerland counts to the full. If you have work episodes in Italy, those periods do not contribute directly to the Swiss AVS, but it is possible to redeem them by paying lump-sum sums. Consult the AVS Center for your specific situation.

Does the Swiss LAMal cover treatment in Italy?

LAMal Switzerland offers basic coverage throughout the EU in the event of an emergency. However, for planned care in Valdisotto, coverage is limited. If you reside in Valdisotto and work in Graubünden, choose a Swiss and affordable LAMal because it covers care regularly in Graubünden (where you work) without additional deductibles. For routine care in Italy, consider supplemental private coverage.

What are the total social security contributions withheld from the paycheck?

The total varies by age and canton, but includes: AVS/AI/IPG 5.3%, AD/AC 1.1% (up to CHF 148,200 salary), LPP 7-18% (second pillar, age bracket). The employer also pays LAINF (accidents) 0.7-1.5%. Altogether, the contributions amount to about 16-20% of the gross salary. LAMal is not retained in a paycheck but paid directly to the insurer.

Living Valdisotto, working in Graubünden: border taxation (cross-border guide)

Di Marco Ferrari · Published on 21 August 2026

Alpine border landscape between Ticino and Grisons, morning view

Tax at source, AVS and LAMal: what to know about taxation and social security for those who live in Valdisotto and work in Graubünden as a border worker

Context

In a nutshell

Tax at source withheld only in Switzerland for Valdisotto border workers
New 2024 Agreement: €10,000 deductible for new frontier workers
AVS mandatory, LPP from 25 years, LAMal recommended

Key facts

Chi: Frontier category G resident Valdisotto (Italy), employee Graubünden (Switzerland)
What: Withholding taxes only from Switzerland; Italy applies tax credit via model 730 EC framework
When: From 1 January 2024 (New Frontier Agreement)
Where: Valdisotto (province of Sondrio, Italy); employers Cantone Grigioni bordering Ticino
Amount: Deductible 10,000 EUR per year (new frontier workers); AVS/AI/IPG 5.3%; AD/AC 1.1%
Regulations: Italy-Switzerland double taxation agreement (9 December 1976)

The new tax regime from 2024

On 23 December 2020, the New Frontier Agreement between Italy and Switzerland was signed, which entered into force on 1 January 2024. For those who live in Valdisotto and work in Graubünden, the main change concerns the taxation of income from employment. Withholding of the tax at source takes place exclusively in Switzerland, at the employer's expense. Italy does not apply taxes directly on frontier labour income, but recognises a tax credit through form 730, EC framework, to avoid double taxation regulated by the Italian-Swiss Convention of 9 December 1976.

The main advantage and the deductible: the new frontier workers (who registered after 17 July 2023)

Operational details

The Swiss compulsory pension scheme

Those who work in Switzerland and reside in Valdisotto and are subject to Swiss social security obligations. The AVS (Old Age and Survivors Insurance) provides for a contribution of 5.3% of the gross salary, withheld by the employer. The obligation is triggered when the annual income exceeds CHF 2,300. The AVS contribution starts to count towards the Swiss pension entitlement from the age of 21.

AI (Invalid Insurance) and IPG (Pregnancy Indemnity) are included in the same 5.3%, not constituting separate costs. AD (Unemployment Insurance) and AC (Municipal Excise) add a further 1.1% of salary up to CHF 148,200 per annum. LAINF (accident insurance) is paid by the employer at 0.7-1.5% and does not directly impact the employee's net salary.

The second pillar: LPP

The LPP (Compulsory Insurance for Old Age, Survivors and Invalidity) and the Swiss compulsory pension fund. It starts from the age of 25. The contribution varies between 7% and 18% of the salary according to the age group: young people pay less (7%), middle-aged adults between 12-15%, the over-50s even more (15-18%). Employee and employer are normally paid in equal parts in the calculation of the total cost of labour.

Concrete example: a 40-year-old border worker with a gross salary of CHF 60,000 per year contributes approximately CHF 7,200 to the second pillar (at 12%), divided equally between

Useful planning tools

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

Key points

Concrete procedure to move to Valdisotto

If you decide to move to Valdisotto and start working in Graubünden, here are the essential steps. First, register with the municipality of Valdisotto as an Italian resident. The identity document, the previous residence certificate, and possibly the marital extract will be used.

Second, the employer in Graubünden requests your G (Border) Permit from the Swiss cantonal authorities. The G Permit is the status for those who permanently reside in a neighbouring state (such as Italy) and regularly work in Switzerland. You do not have to request it personally; the procedure is managed by the employer.

Third, the employer assigns you an AVS number if you don't already have one. This number is essential for Swiss social security contributions. You will receive an official communication from your local AVS Centre.

Fourth, choose a Swiss LAMal by January 1 of the business year. Contact directly an operating insurer in the canton of Graubünden and enter into the contract. Premiums are charged monthly.

Fifth, at the end of the year (31 December), the employer issues you the Swiss withholding tax certificate. Keep it for the Italian declaration.

Sixth, in March of the following year, presents the model 730 at a CAF or professional. In the EC framework, it shows the taxes paid in Switzerland. The Revenue Agency calculates the tax credit and, if necessary, reimburses the difference.

Checklist

Check tax deadlines for cross-border workers: returns, Swiss declarations, rebates — all dates in one interactive calendar.

Frequently Asked Questions

What are the differences between the old and the new border agreement?: The New Frontier Agreement (which entered into force on 1 January 2024) introduces an exemption: new frontier workers exempt EUR 10,000 per year from Swiss taxation. Old frontier workers (already frontier workers before 17 July 2023) benefit from EUR 7,500 per year until 2033, under a progressive regime. The withholding tax continues to be withheld only in Switzerland, as regulated by the Italian-Swiss Convention of 9 December 1976. Before 2024, the system was less favorable.
How does the Italian tax credit work for those who work in Switzerland?: Italy does not apply taxes on the income from work of border workers. However, to verify that Switzerland has withheld the correct amount, you must submit Form 730 with the CE framework (showing the taxes paid in Switzerland) each year. The Revenue Agency calculates the tax credit automatically. If Switzerland withheld more than due according to Italian rates, you receive a refund.
How many years of AVS contributions am I entitled to a Swiss pension?: AVS pension typically requires 43 years of contributions for men and 42 years for women, counting from 21 years of age. As a border worker, every year of work in Switzerland counts to the full. If you have work episodes in Italy, those periods do not contribute directly to the Swiss AVS, but it is possible to redeem them by paying lump-sum sums. Consult the AVS Center for your specific situation.
Does the Swiss LAMal cover treatment in Italy?: LAMal Switzerland offers basic coverage throughout the EU in the event of an emergency. However, for planned care in Valdisotto, coverage is limited. If you reside in Valdisotto and work in Graubünden, choose a Swiss and affordable LAMal because it covers care regularly in Graubünden (where you work) without additional deductibles. For routine care in Italy, consider supplemental private coverage.
What are the total social security contributions withheld from the paycheck?: The total varies by age and canton, but includes: AVS/AI/IPG 5.3%, AD/AC 1.1% (up to CHF 148,200 salary), LPP 7-18% (second pillar, age bracket). The employer also pays LAINF (accidents) 0.7-1.5%. Altogether, the contributions amount to about 16-20% of the gross salary. LAMal is not retained in a paycheck but paid directly to the insurer.