How does the tax at source work for a border worker working in Graubünden?

Tax on the source of income from work is only withheld in Switzerland by the employer, not in Italy. Swiss withholding tax is calculated on the basis of gross income, marital status and family responsibilities. In the Italian income tax return (EC framework of 730), the border worker enters the total income and automatically obtains a tax credit for taxes already paid in Switzerland. This mechanism avoids double taxation. If the Swiss tax exceeds the Italian IRPEF, you receive a refund; if it is lower, you pay the difference.

What is the difference between permit G and permit B for those who want to live in Colorina?

The G permit is reserved for border workers: it allows them to reside in Italy (Colorina) and work in Switzerland (Graubünden) without transferring their personal residence. The B permit is instead a temporary residence permit for those who want to actually move to Switzerland. With the G permit you keep your base in Italy, pay Italian municipal taxes and take advantage of the bilateral CH-IT convention of 1976 to avoid double taxation.

How does health insurance (LAMal) work for border workers with a G permit?

Frontier G has the right of option: he can maintain his registration with the Italian National Health Service or take out Swiss health insurance (LAMal). If you choose the LAMal, you can select a deductible between CHF 300 and CHF 2,500 per year according to your preferences. The choice must be communicated within the deadlines set by the insurance company of the Canton of Graubünden.

What social security contributions (AVS, LPP) are withheld from the paycheck?

The border worker working in Graubünden is subject to AVS/AI/IPG (5.3% retained by the employer) and AD/AC (unemployment/occupational disease fund, 1.1% within CHF 148,200). From the age of 25, it is compulsorily enrolled in an LPP fund (supplementary pension) with a rate of 7–18% according to the age group. The employer also pays the LAINF insurance (0.7–1.5%) at SUVA for accidents. All these contributions are deductible in the Italian declaration.

Living in Colorina and working in Graubünden

Di Redazione Frontaliere Ticino · Published on 7 September 2026 · Updated on 25 September 2026

Colorina, border town in Sondrio province Italy: residential area for cross-border workers in Canton Graubünden Switzerland

Permit G, taxation in Switzerland, Italian tax credit, AVS/LPP, LAMal and procedures: the complete guide for border workers between Sondrio and Graubünden.

Context

In brief

Permit G: cross-border residence permit for Colorina residents working in Graubünden
Withholding tax: only deducted in Switzerland, no double taxation with Italian tax credit
New 2024 agreement: old cross-border workers have exemption €7,500, new cross-border workers €10,000 from declaration
AVS/LPP/LAMal: pension and health insurance according to Swiss laws, with LAMal option for G cross-border workers

Key facts

What: Permit G for cross-border workers from border municipalities in Ticino-Italy who work as employees in Graubünden
When: New cross-border agreement effective from 1 January 2024 (signed 23 December 2020, IT ratification: Law 83/2023)
Where: Border municipalities such as Colorina (Sondrio), cross-border checkpoints towards Graubünden
Who: SECO (CH), SEM, INPS, Tax Agency (IT), Italian municipal administrations
Legal basis: Italian-Swiss Convention of 9 March 1976; New Cross-Border Agreement of 23 December 2020
2024 exemptions: €7,500 (old cross-border workers pre 17.7.2023) / €10,000 (new cross-border workers)

The Permit G for cross-border workers represents the ideal solution for those residing in Colorina — a border municipality in the province of Sondrio — and working in Graubünden. Unlike the Permit B (temporary residence), the Permit G allows maintaining residence in Italy while exercising dependent employment in Switzerland.

From 1 January 2024, with the entry into force of the new cross-border agreement signed on 23 December 2020 and ratified in Italy with Law 83 of 13 June 2023, the tax rules have undergone a significant revision. The Italian-Swiss Convention of 9 March 1976 established that the withholding tax on employment income is deducted solely in Switzerland. This means that the employer in Graubünden applies the withholdings provided by Swiss laws — and not by Italian laws — on the pay slip of the cross-border worker. Italy still requires the income tax return, where the cross-border worker enters the income received and obtains a tax credit (CE section of the 730 with the Tax Agency) for the taxes already paid in Switzerland. In this way, double taxation is avoided, thanks to the bilateral coordination CH-IT.

Permit G: rights and novelties of the 2024 agreement

The Permit G is a cross-border residence permit reserved for Italian citizens residing in municipalities officially designated as border areas. Colorina is one of these. It is not necessary to transfer residence to Switzerland: the cross-border worker continues to live in Italy, pay local Italian taxes, and benefit from the bilateral convention.

The new 2024 agreement has introduced important changes. Cross-border workers already established as such before 17 July 2023 benefit from an exemption up to €7,500 of annual income to be declared in Italy within a transitional regime 2024–2033. New cross-border workers, registered after 17 July 2023, have a franchise of €10,000. This means that incomes below these thresholds are not subject to further Italian taxation, as the tax credit already covers what has been paid in Switzerland through withholding.

The SECO (State Secretariat for Economic Affairs of Switzerland) administers the documentation of the Permit G; the Italian Prefecture of Sondrio and the cantonal authorities of Ticino coordinate the aspects of residence and stay. The INPS intervenes for the coordinated Swiss pension; the Tax Agency manages the tax credit. Regarding Swiss pension contributions, the cross-border worker is subject to AVS/AI/IPG (rate 5.3% withheld by the employer) and AD/AC (unemployment/professional health insurance, 1.1% within the annual cap of CHF 148,200).

Operational details

When working in Graubünden with a G permit, the salary is calculated according to Swiss laws, not Italian ones. The payslip is subject to three types of deductions: Cantonal withholding tax: The employer calculates the tax based on the gross income, marital status, and family burdens declared by the cross-border worker to the Canton of Graubünden. This deduction is an advance on income tax: the cross-border worker can obtain a refund if the amount withheld exceeds the actual tax due at the end of the year. Mandatory pension contributions: AVS/AI/IPG (5.3%) are payments for pension purposes to the Swiss public system. The cross-border worker accumulates pension rights even if they reside in Italy, provided they continue to work in Switzerland. These contribution years are eventually coordinated with the Italian pension system (INPS) in case of transfer or retirement. Professional accident insurance: LAINF (0.7–1.5%) is paid by the employer to SUVA (Swiss Accident Insurance) and covers workplace accidents and occupational diseases.

Complementary pension and the second pillar (LPP)

In addition to AVS, the cross-border worker is enrolled in a professional pension fund (LPP) starting from the age of 25. The contribution rate varies from 7% to 18% depending on the age group and the conditions of the fund. The LPP guarantees a supplementary old-age pension compared to AVS and a capital in case of disability or premature death. The cross-border worker residing in Italy has the same contribution and pension rights as a Swiss worker. AVS, AD/AC, and LPP contributions are deductible in the Italian income tax return, reducing the IRPEF taxable income. This represents a significant tax advantage compared to a purely Italian employee.

Income tax return and tax credit: how it works At the end of the fiscal year, the cross-border worker files an Italian income tax return with the Revenue Agency, entering the total income from work in Graubünden. They use the "quadro CE" of the model 730, where they declare the gross income, the withholding taxes paid in Switzerland, and the contributions paid (AVS, LPP, AD/AC). The Agency calculates the Italian-Swiss tax credit, applying the Italian IRPEF rates (23% up to €28,000; 33% from €28,001 to €50,000; 43% over €50,000) and subtracting the Swiss taxes already paid. Example of tax logic (generic): A cross-border worker who receives a gross income in Graubünden is subject to Swiss cantonal tax on their payslip. In the Italian declaration, their IRPEF taxable income is reduced by the deductible AVS/LPP contributions. If the Swiss tax paid is higher than the IRPEF due in Italy, they receive a refund. If it is lower, they pay the difference. The tax credit prevents the same income from being taxed twice.

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

If you are considering moving your residence to Colorina and looking for work in Graubünden, here are the key steps to start your activity as a cross-border worker.

Evaluating a Ticino job offer? Simulate your net payslip: enter gross salary, marital status and municipality for a detailed breakdown.

Frequently Asked Questions

How does the tax at source work for a border worker working in Graubünden?: Tax on the source of income from work is only withheld in Switzerland by the employer, not in Italy. Swiss withholding tax is calculated on the basis of gross income, marital status and family responsibilities. In the Italian income tax return (EC framework of 730), the border worker enters the total income and automatically obtains a tax credit for taxes already paid in Switzerland. This mechanism avoids double taxation. If the Swiss tax exceeds the Italian IRPEF, you receive a refund; if it is lower, you pay the difference.
What is the difference between permit G and permit B for those who want to live in Colorina?: The G permit is reserved for border workers: it allows them to reside in Italy (Colorina) and work in Switzerland (Graubünden) without transferring their personal residence. The B permit is instead a temporary residence permit for those who want to actually move to Switzerland. With the G permit you keep your base in Italy, pay Italian municipal taxes and take advantage of the bilateral CH-IT convention of 1976 to avoid double taxation.
What are the tax exemptions of the new 2024 border agreement?: The new agreement, which entered into force on 1 January 2024, introduced specific exemptions. Border workers already established before 17 July 2023 benefit from an exemption of up to €7,500 of annual income to be declared in Italy within a transitional regime 2024–2033. The new frontier workers, registered after 17 July 2023, have a deductible of €10,000. Income below these thresholds is not subject to further Italian tax thanks to the tax credit.
How does health insurance (LAMal) work for border workers with a G permit?: Frontier G has the right of option: he can maintain his registration with the Italian National Health Service or take out Swiss health insurance (LAMal). If you choose the LAMal, you can select a deductible between CHF 300 and CHF 2,500 per year according to your preferences. The choice must be communicated within the deadlines set by the insurance company of the Canton of Graubünden.
What social security contributions (AVS, LPP) are withheld from the paycheck?: The border worker working in Graubünden is subject to AVS/AI/IPG (5.3% retained by the employer) and AD/AC (unemployment/occupational disease fund, 1.1% within CHF 148,200). From the age of 25, it is compulsorily enrolled in an LPP fund (supplementary pension) with a rate of 7–18% according to the age group. The employer also pays the LAINF insurance (0.7–1.5%) at SUVA for accidents. All these contributions are deductible in the Italian declaration.