What are the differences between old and new frontier workers after 2024?

Old border workers, hired before 17 July 2023, benefit from a transitional regime that lasts until 31 December 2033, with a tax exemption of 7,500 euros. The new frontier workers, hired from 1 January 2024, fall under the regime of the new tax agreement which provides for a deductible of 10,000 euros. Both categories are subject to tax at source in Switzerland, with tax credit mechanisms to avoid double taxation in Italy.

How is double taxation between Italy and Switzerland handled?

Double taxation is avoided thanks to the Convention of 9 March 1976 and the rules introduced by the new 2020 agreement. Earned income is taxed at source in Switzerland. The worker must then declare this income in Italy in the EC framework of form 730, applying the tax credit for taxes already paid in Switzerland, ensuring that the tax burden is proportionate.

What does a border worker's paycheck in Graubünden include?

The payroll includes mandatory deductions such as AVS/AI/IPG (5.3% paid by the employee), AD/AC (1.1% up to a ceiling of CHF 148,200), LAINF (between 0.7% and 1.5%) and the LPP contribution (7-18% for those over 25). The source tax is calculated by the Federal Tax Administration (AFC) according to cantonal and federal legislation.

Living in Piuro and working in Graubünden as a border worker

Di Marco Ferrari · Published on 11 August 2026 · Updated on 25 September 2026

Mountain landscape at the border between Italy and Graubünden

Practical guide to commuting between Piuro and the Canton of Graubünden, with a focus on taxation, the new agreement and rules for border crossers.

Context

In brief

New Cross-Border Workers Agreement: in force since January 1, 2024.
Taxation: withholding tax in Switzerland, tax credit in Italy.
Allowance: 10,000 euros for new cross-border workers.
Transitional regime: 2024–2033 for workers employed before July 17, 2023.

Key facts

What: New Agreement between Italy and Switzerland for cross-border workers.
When: In force since January 1, 2024.
Where: Italo-Swiss border, including the Canton of Graubünden.
Who: Italian Revenue Agency (Agenzia delle Entrate), Swiss Federal Tax Administration.
Amount: 10,000 euro allowance for new cross-border workers.

Commuting between Piuro and the Canton of Graubünden is regulated by the framework defined in the new agreement signed on December 23, 2020, and fully operational since January 1, 2024, ratified in Italy by Law 83 of June 13, 2023. For those residing in Piuro and commuting daily to the Graubünden territory, managing their tax status is a central element. Withholding tax, applied directly in Switzerland, constitutes the pillar of the levy, while Italy ensures the avoidance of double taxation through a tax credit, which must be declared in section CE of the 730 tax form. For so-called 'old cross-border workers', meaning those who worked in Switzerland before July 17, 2023, a transitional regime is in place until 2033, maintaining the 7,500 euro exemption. New cross-border workers, on the other hand, benefit from a 10,000 euro allowance. Income tax rates are managed by the competent authorities in line with Swiss federal and cantonal provisions and Italian regulations. It is essential to distinguish between Swiss taxation, managed by the Federal Tax Administration (FTA), and Italian taxation, monitored by the Revenue Agency. Social contributions, such as AVS, AI, and IPG, are paid in Switzerland, contributing to pension and insurance coverage, while the Swiss employer acts as a tax substitute regarding the withholding tax. Cooperation between the tax administrations of the two countries aims for the correct application of the tax credit, preventing the same income from being taxed twice. Tools for verifying one's tax status are essential for every worker intending to plan their annual net income, taking into account both Swiss withholdings and residual Italian taxation.

Operational details

Analysis of taxation and transitional regime

The distinction between the regime for 'old' cross-border commuters and 'new' ones is the cornerstone of financial planning for those residing in Piuro. For workers already active before July 17, 2023, the regulations guarantee the maintenance of the previous regime, with a tax exemption of 7,500 euros, ensuring continuity in the calculation of the net salary during the transitional period that will last until December 31, 2033. For those hired from January 1, 2024, the system provides for an allowance of 10,000 euros, which influences the calculation of the tax credit due in Italy. Source taxation in Switzerland remains the primary method, calculated based on rates established by federal and cantonal laws. It is important to note that the IRPEF rate in Italy follows the current tax brackets: 23% up to 28,000 euros, 33% between 28,001 and 50,000 euros, and 43% over 50,000 euros. The tax credit, reported in the 730 tax return form via section CE, allows for the deduction of taxes paid in Switzerland from the IRPEF due in Italy, thus avoiding double taxation. Health insurance, known as LAMal, is another essential cost element: cross-border commuters enjoy the right of option, being able to choose between Swiss and Italian coverage. Deductibles for adults vary between 300 and 2,500 CHF. The management of social security contributions, such as AVS/AI/IPG (5.3% borne by the employee) and AD/AC (1.1% up to a ceiling of 148,200 CHF), together with the occupational pension scheme LPP (7-18% depending on age), must be monitored carefully. Using a calculator for net salary simulation allows for a better understanding of the impact of these deductions on actual monthly income. Every cross-border commuter should also carefully evaluate their position regarding the double taxation conventions, signed on March 9, 1976, which establish the basis for the treatment of cross-border income, keeping in mind that Switzerland is not a member of the European Union or the European Economic Area.

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

Procedures and operational management

Managing life as a cross-border worker between Piuro and Graubünden requires rigorous attention to the documentation requested by the competent authorities. The first step is to verify your status regarding the new 2020 agreement. Workers must ensure that their employer in Switzerland correctly applies withholding tax in accordance with the directives of the Federal Tax Administration (FTA). When filing your tax return in Italy, it is necessary to complete the CE section of the 730 form to claim the tax credit, attaching the documentation certifying the taxes paid in Switzerland. For those who commute daily, the management of transport costs and, where applicable, LAMal insurance must be planned with precision. It is advisable to keep all payslips (the annual employment certificate) to facilitate the completion of the tax return. Regarding social security, the payment of the second pillar (LPP) is mandatory for workers from the age of 25, with percentages varying between 7% and 18% depending on the age group. Those who wish to further optimize their pension situation may consider the third pillar. It is essential to regularly consult the Italian Revenue Agency (Agenzia delle Entrate) portal for updates on filing procedures. For those who need an immediate overview of their income, using a simulation tool is the most reliable solution to avoid surprises during tax settlement. It is recommended not to rely on generic estimates, but to base calculations on your actual contractual data. Correct interpretation of Italian and Swiss regulations allows you to fully exploit the 10,000 euro allowance (for new cross-border workers) or the 7,500 euro exemption (for old cross-border workers), optimizing the overall tax burden in compliance with the laws in force from 2024.

Frequently Asked Questions

What are the differences between old and new frontier workers after 2024?: Old border workers, hired before 17 July 2023, benefit from a transitional regime that lasts until 31 December 2033, with a tax exemption of 7,500 euros. The new frontier workers, hired from 1 January 2024, fall under the regime of the new tax agreement which provides for a deductible of 10,000 euros. Both categories are subject to tax at source in Switzerland, with tax credit mechanisms to avoid double taxation in Italy.
How is double taxation between Italy and Switzerland handled?: Double taxation is avoided thanks to the Convention of 9 March 1976 and the rules introduced by the new 2020 agreement. Earned income is taxed at source in Switzerland. The worker must then declare this income in Italy in the EC framework of form 730, applying the tax credit for taxes already paid in Switzerland, ensuring that the tax burden is proportionate.
What does a border worker's paycheck in Graubünden include?: The payroll includes mandatory deductions such as AVS/AI/IPG (5.3% paid by the employee), AD/AC (1.1% up to a ceiling of CHF 148,200), LAINF (between 0.7% and 1.5%) and the LPP contribution (7-18% for those over 25). The source tax is calculated by the Federal Tax Administration (AFC) according to cantonal and federal legislation.