What is the tax difference between old and new frontier workers?

Border workers already in this category before 17 July 2023 enjoy a transitional regime valid until 2033 with a tax exemption of 7,500 euros. The new frontier workers, hired from 1 January 2024, benefit from a deductible of 10,000 euros. In both cases, income is taxed at source in Switzerland, with tax credit in Italy.

How does double taxation between Italy and Switzerland work?

The New Agreement of 23 December 2020, in force since 1 January 2024, stipulates that the income of frontier workers is taxed in Switzerland. To avoid double taxation, Italy recognizes a tax credit on taxes paid in Switzerland, which must be declared in the EC framework of model 730, in accordance with the Convention of 9 December 1976.

What are the mandatory deductions on the Swiss paycheck?

The main deductions include AVS/AI/IPG at 5.3%, AD/AC at 1.1% (up to a ceiling of CHF 148,200), LAINF ranging from 0.7% to 1.5%, and LPP (occupational pension) ranging from 7% to 18% depending on the age of the worker, calculated from 25 years onwards.

Living in Tovo di Sant'Agata and working in Graubünden (cross-border guide)

Di Marco Ferrari · Published on 11 August 2026

Panoramic view of a mountain road near the Italian-Swiss border

Practical guide for border workers: taxation, new agreement, deductibles and social security contributions for those who reside in Valtellina and work in the Canton of Graubünden.

Context

In a nutshell

New Frontier Agreement in force from 1 January 2024.
Exclusive taxation in Switzerland with tax credit in Italy.
Tax exemption of 10,000 euros for new frontier workers.
Transitional regime 2024–2033 for pre-17 July 2023 workers.

Key facts

What: New Italy-Switzerland Border Agreement
When: Effective January 1, 2024
Where: Italy-Switzerland border (Graubünden)
Who: Revenue Agency, AFC, MEF
Amount: Deductible 10,000 euros (new) or 7,500 euros (old)

Commuting between Tovo di Sant'Agata and the Canton of Graubünden is governed by the New Frontier Agreement, signed on 23 December 2020 and fully operational from 1 January 2024, following the Italian ratification with Law 83 of 13 June 2023. For those residing in Italy and working in Switzerland, the legislation establishes the principle of taxation at source in Switzerland, avoiding double taxation by applying the tax credit in the EC framework of the Italian model 730. It is essential to remember that Switzerland is not a member of the European Union or the European Economic Area, therefore relations are governed by bilateral conventions, including the historic Double Taxation Convention signed on 9 December 1976. The official reference bodies for tax management are the Federal Tax Administration (AFC/ESTV) in Switzerland and the Revenue Agency

Operational details

The practical analysis of commuterism requires a clear understanding of social contributions and withholding in payroll. The Swiss pension system provides that the employee supports a quota of AVS/AI/IPG equal to 5.3% of the gross salary. This is added to the contribution for unemployment insurance (AD/AC) set at 1.1% up to a salary ceiling of 148,200 CHF. Regarding protection against risks, the withholding for accident insurance (LAINF) typically oscillates between 0.7% and 1.5%, while professional pension (LPP) involves a variable withholding between 7% and 18% based on the employee's age range, starting from the completion of the 25th year.

Useful planning tools

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

Key points

The procedure for those starting to work in Switzerland requires a series of precise administrative steps to be in compliance. After obtaining the employment contract, the first step is to request a G permit from the competent cantonal authorities. It is essential to constantly monitor the communications of the Federal Tax Administration (AFC/ESTV) and the Tax Agency regarding notification obligations. For those residing in Tovo di Sant'Agata, commuting to the Grisons implies a careful management of travel times and associated costs. There are no automatic concessions on routes, so an analysis of cost of living is essential to balance expenses between the two countries.

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

Frequently Asked Questions

What is the tax difference between old and new frontier workers?: Border workers already in this category before 17 July 2023 enjoy a transitional regime valid until 2033 with a tax exemption of 7,500 euros. The new frontier workers, hired from 1 January 2024, benefit from a deductible of 10,000 euros. In both cases, income is taxed at source in Switzerland, with tax credit in Italy.
How does double taxation between Italy and Switzerland work?: The New Agreement of 23 December 2020, in force since 1 January 2024, stipulates that the income of frontier workers is taxed in Switzerland. To avoid double taxation, Italy recognizes a tax credit on taxes paid in Switzerland, which must be declared in the EC framework of model 730, in accordance with the Convention of 9 December 1976.
What are the mandatory deductions on the Swiss paycheck?: The main deductions include AVS/AI/IPG at 5.3%, AD/AC at 1.1% (up to a ceiling of CHF 148,200), LAINF ranging from 0.7% to 1.5%, and LPP (occupational pension) ranging from 7% to 18% depending on the age of the worker, calculated from 25 years onwards.