If I live in Caiolo and work in Graubünden, where do I pay taxes?

You pay source tax in Switzerland, where the employer withholds from your salary. Italy does NOT make a second withholding: the New Frontier Agreement (in force from 1 January 2024) avoids double taxation. If your income exceeds €10,000 per year (new frontier workers), present the model 730 in Italy and receive a tax credit in the EC framework. If you are an "old" border crossing (already before 17 July 2023), the threshold drops to €7,500.

Do I need to register with INPS or just the Swiss AVS?

Only to the Swiss AVS and the Swiss social security system (LPP, LAMal). You do not pay Italian INPS contributions for work done in Switzerland. It is the Swiss employer who registers the border worker with Swiss institutions (AVS, company LPP, health insurer). Swiss contribution periods also count for the Italian pension thanks to the Italy-Switzerland Double Taxation Convention (signed on 9 December 1976): avoid contribution gaps.

How much does the health insurance (LAMal) from Caiolo-Grisioni border crossing cost?

It depends on the policy chosen. In Switzerland, LAMal has adult franchises from CHF 300 to CHF 2,500 per year (the choice of franchise level reduces the premium). A frontier worker can opt for a Swiss insurer or choose an Italian Mutual Fund (right of option): the procedure is negotiated on a case-by-case basis. Recommend your Swiss employer for the options available.

I found a job in Graubünden: how long does it take for Leave G?

There is no single deadline; it depends on Swiss and Italian procedures. The SECO (State Secretariat for the Swiss Economy) authorizes the G Permit within a few weeks if the company is in good standing and the cantonal quota of border workers is not exhausted. The request must be submitted through the employer and the competent authorities (canton of Graubünden, Sondrio Police Headquarters). Advise the company to start the process as soon as you have signed the contract.

If I return to Italy after one year, how do I recover the LPP contributions paid in Switzerland?

LPP (second pillar) contributions remain deposited with the company's Swiss pension fund. Upon return, you have two options: (a) transfer the capital to a Swiss or Italian bank through a “free passage withdrawal” procedure, or (b) leave it at the fund and wait for retirement age. The details depend on the provisions of the specific fund: contact your LPP manager before returning.

From Caiolo to Graubünden: Switzerland-Italy border life (cross-border guide)

Di Marco Ferrari · Published on 21 August 2026

View from Monte Generoso towards Grisons, Switzerland-Italy border

Living in Caiolo and working in Graubünden: practical guide to taxation, G Permit, AVS-LPP, LAMal and refreshments for the CH-IT border crossing.

Context

In a nutshell

Frontier Caiolo-Grisioni: work in Switzerland, residence in Italy
Tax at source only in Switzerland; Italian tax credit
Permit G, AVS, LPP mandatory; LAMal with option right
New Agreement in force from 1 January 2024

Key facts

What: Frontierism from an Italian municipality (Caiolo, Lombardy) towards a Swiss canton (Graubünden)
When: From 1 January 2024, the rules of the New Frontier Agreement will apply
Where: Italian-Swiss border, with access to Graubünden
Who: Border workers with G Permit, residents in Italy and employees in Switzerland
Taxes: Withholding tax in Switzerland; Italian tax credit according to the EC framework of model 730
Deductible: €10,000 per year (new frontier workers), €7,500 (old frontier workers, until 2033)
Contributions: AVS 5.3%, LPP 7-18% by age group, LAMal CHF300-2,500 per year

Choosing to live in Caiolo, a border municipality in Lombardy, and work in Graubünden means accepting a double identity: Italian resident, commuter to Switzerland. Since 1 January 2024, with the entry into force of the New Frontier Agreement, the rules governing this choice have changed, especially from a tax and social security point of view.

The New Agreement, signed on 23 December 2020 between Italy and Switzerland, reshapes the tax landscape for those who travel the border on a daily basis. Tax withholding of source tax takes place exclusively in Switzerland: there is no double taxation.

Operational details

Contributions and social security: AVS, LPP, LAMal

Working in Switzerland as a cross-border commuter means automatically paying contributions to the Swiss social security system. There is no choice: payments are mandatory, and fund public pensions (AVS), disability insurance (AI), and unemployment insurance (IPG).

AVS (Alters- und Hinterlassenenversicherung): This is the first pillar, the public pension. Employees pay 5.3% of their gross salary. Upon reaching retirement age (65 for men, 64 for women, with a gradual increase to 65 for women), a monthly pension is received, calculated based on contributions. Switzerland has signed the Convention on Double Taxation with Italy (signed December 9, 1976): Swiss contribution periods also count toward the Italian pension, avoiding contribution gaps.

LPP (Occupational Pension Plan): This is the second pillar, the supplementary pension fund. Contribution rates vary by age. For employees aged 25 and over, contributions range between 7% and 18% of salary (exact percentages depend on the company's insurance plan). The second pillar is private capital: it does not go to the public system but remains deposited with the company pension fund. If the cross-border commuter changes jobs or returns to Italy, they can decide whether to transfer the pension capital.

LAMal (Krankenversicherung): This is mandatory Swiss health insurance. The cross-border commuter has the right to choose: they can insure with a Swiss insurer (CHF 300–2,500 annual franchise for adults, depending on the policy) or with an Italian Mutual Fund. Consult our health insurance guide to understand the options. The choice must be communicated to the Swiss employer and the insurance provider.

…

Key points

What to do before relocating

Choosing to live in Caiolo and work in Graubünden requires several administrative steps. First, find a company in Graubünden willing to hire a cross-border commuter. The employment contract must include registration with the Swiss system (AVS, LPP, LAMal) effective from the start date. The Permesso G is the permit allowing you to work in Switzerland while residing in Italy: apply through Swiss authorities (Graubünden canton) and Italian authorities (Sondrio Police Headquarters). The procedure is negotiated between the two countries, with SECO (Swiss State Secretariat for Economic Affairs) overseeing cross-border worker quotas by economic sector and period.

Once hired, the Swiss employer registers the commuter with contribution agencies (AVS, LPP, LAMal, SUVA for accident insurance). There are no fixed deadlines for registration: it occurs simultaneously with the first salary. The commuter then receives a Swiss payslip, with no INPS contribution obligations in Italy for that income.

Annual deadlines and procedures

In the first year as a cross-border commuter, the Italian taxpayer files the 730 form (or Redditi form if ineligible for 730) in Section CE, declaring Swiss income. The Italian Revenue Agency recognizes the tax credit under the new agreement.

January–May: Submit the Italian tax return (730 or Redditi form) with Section CE for the previous year's income.
During the year: The Swiss employer pays net amounts (after Swiss contributions). No dual payslips: only one source (Switzerland).
If changing jobs or returning to Italy: Promptly notify Swiss authorities (SECO/Graubünden cantonal office) and Italian authorities (Sondrio Police Headquarters). Amend or cancel the Permesso G.

…

Frequently Asked Questions

If I live in Caiolo and work in Graubünden, where do I pay taxes?: You pay source tax in Switzerland, where the employer withholds from your salary. Italy does NOT make a second withholding: the New Frontier Agreement (in force from 1 January 2024) avoids double taxation. If your income exceeds €10,000 per year (new frontier workers), present the model 730 in Italy and receive a tax credit in the EC framework. If you are an "old" border crossing (already before 17 July 2023), the threshold drops to €7,500.
Do I need to register with INPS or just the Swiss AVS?: Only to the Swiss AVS and the Swiss social security system (LPP, LAMal). You do not pay Italian INPS contributions for work done in Switzerland. It is the Swiss employer who registers the border worker with Swiss institutions (AVS, company LPP, health insurer). Swiss contribution periods also count for the Italian pension thanks to the Italy-Switzerland Double Taxation Convention (signed on 9 December 1976): avoid contribution gaps.
How much does the health insurance (LAMal) from Caiolo-Grisioni border crossing cost?: It depends on the policy chosen. In Switzerland, LAMal has adult franchises from CHF 300 to CHF 2,500 per year (the choice of franchise level reduces the premium). A frontier worker can opt for a Swiss insurer or choose an Italian Mutual Fund (right of option): the procedure is negotiated on a case-by-case basis. Recommend your Swiss employer for the options available.
I found a job in Graubünden: how long does it take for Leave G?: There is no single deadline; it depends on Swiss and Italian procedures. The SECO (State Secretariat for the Swiss Economy) authorizes the G Permit within a few weeks if the company is in good standing and the cantonal quota of border workers is not exhausted. The request must be submitted through the employer and the competent authorities (canton of Graubünden, Sondrio Police Headquarters). Advise the company to start the process as soon as you have signed the contract.
If I return to Italy after one year, how do I recover the LPP contributions paid in Switzerland?: LPP (second pillar) contributions remain deposited with the company's Swiss pension fund. Upon return, you have two options: (a) transfer the capital to a Swiss or Italian bank through a “free passage withdrawal” procedure, or (b) leave it at the fund and wait for retirement age. The details depend on the provisions of the specific fund: contact your LPP manager before returning.