Living in Saint-Pierre and working in Valais as a border worker (cross-border guide)

Context

In a nutshell

• The New Frontier Agreement entered into force on 1 January 2024, replacing the old agreement signed on 23 December 2020.
• Frontier workers can benefit from a deductible of €10,000, replacing the previous deductible of €7,500.
• Switzerland and Italy signed the Double Taxation Agreement on 9 December 1976.

Key facts

• Connections: the passes of Brogeda and Gaggiolo are the busiest, with a traffic of about 10,000 vehicles per day.
• Travel times: Travel times vary depending on the area and traffic, but on average you can wait about 30-40 minutes to cross the border.
• Cost of living: The cost of living in Saint-Pierre is slightly higher than in Valais, with an increase of about 10% for groceries and 20% for services.
• Recommended areas: Saint-Pierre, Saint-Oyen, Etroblles and La Thuile are the most recommended areas for border crossers, offering a balance between comfort and price.

How the New Frontier Agreement works

• Border workers can work in Switzerland and pay taxes in Italy, or vice versa.
• The deductible of €10,000 is applied to incomes up to €50,000, while for higher incomes Swiss taxation applies.
• Border workers must submit their tax return in Italy and Switzerland by 31 March of the following year.

Operational Checklists

• Check the validity of the

Operational details

The Double Taxation Convention between Switzerland and Italy was signed on 9 December 1976 and provides for collaboration between the two countries to avoid double taxation of border workers' income. Border workers can benefit from a deductible of €10,000, which allows them to take advantage of job opportunities in Valais without having to pay taxes in both countries. The deductible has been established to facilitate the lives of border crossers and reduce transport and accommodation costs.

Valais is a region of Switzerland that offers many job opportunities, especially in the financial and industrial sectors. Border workers can work in cities such as Sion, Sierre or Crissier, and enjoy a high quality of life and a mild climate. However, it is important to know that the €10,000 deductible is not an excuse to evade taxes. It is important to declare your income and pay taxes in Switzerland, as required by law.

A concrete example of how the franchise works is the case of an Italian worker who lives in Saint-Pierre and works in Sion. He earns €50,000 per year and pays taxes in Italy. Thanks to the €10,000 deductible, you do not have to pay taxes in Switzerland and can enjoy a 20% reduction on Italian taxes. This way, you can save €2,000 per year.

Other examples of municipalities in Ticino where border workers can work are:

• Martigny: known for its cheese and wine production
• Monthey:

Recommended tools

For an updated estimate, use the net salary calculator and the CHF-EUR exchange comparator.

Key points

To benefit from the deductible, frontier workers must file their tax return in Switzerland and apply for the deductible at the AFC/ESTV. It is important to note that the deductible is not automatic and requires the submission of specific documentation. Border workers can also benefit from a €300–€2,500 deductible for LAMal, which allows them to take advantage of job opportunities in Valais without having to pay health insurance taxes.

For example, a frontier worker who lives in Saint-Pierre and works in Brig could benefit from a deductible of €1,500 for LAMal, which allows him to save about €500 per year on health insurance taxes. This means that he may have more money available for daily expenses and may even increase his ability to save.

It is important to consult the AFC/ESTV for more information about the franchise and the application process. In addition, it is advisable to check your personal and professional situation to determine if the deductible is suitable for your needs.

To claim the deductible, frontier workers must present the following documentation:

• Income tax return in Switzerland
• Documentation certifying residence in Switzerland
• Documentation certifying the processing in Valais
• Documentation attesting to the lack of insurance coverage in Switzerland

It is also important to note that the deductible is not

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