If I live in Villeneuve and work in Valais, where do I pay taxes?

Tax at source is only withheld from your salary by Switzerland. Italy recognises a tax credit in your annual return (Form 730, EC Framework) to avoid double taxation. You do not pay simultaneous taxes in both countries. The Italian-Swiss Convention of 9 December 1976 regulates this mechanism.

What is the difference between Permit G and Permit B for those living in Villeneuve?

The G Permit is for border workers: it allows them to work in Valais while remaining resident in Villeneuve (Italy), renewable annually. Permit B is for residents: it requires you to transfer your tax residence to Switzerland, with different tax and social security implications. For those who want to maintain their Italian residence, the G Permit is the natural choice.

Should I choose Swiss LAMal or stay with Italian INPS as a border agent?

You have the right of option as a Group G border crossing: you can choose Swiss LAMal (CHF 300-2,500 per year deductible, full coverage in Switzerland) or keep the Italian INPS (Italian healthcare covered). If you work predominantly in Valais, LAMal is generally preferable. If you come back frequently for doctor visits, INPS may be more convenient. Consider case-by-case.

Does the New Frontier Agreement entitle me to an automatic tax deduction?

Yes. If you are an old frontier worker (before 17 July 2023), you benefit from an exemption of up to 7,500 euros per year under the transitional regime 2024–2033. If you are a new frontier worker, you have a €10,000 deductible. These deductions reduce taxable income in Italy. Check with your accountant if your situation qualifies for the maximum deduction.

Is it economically convenient to live in Villeneuve and work in Valais?

It depends on the specific company, commuting costs and your personal situation. Villeneuve has an Italian cost of living (lower than Swiss Valais), but the distance from major employers in Valais is variable. Use the salary calculator to compare net and freight costs. The main advantage is the lower cost of living during leisure time; the disadvantage is the potentially longer commute.

Living in Villeneuve and working in Valais: border guide (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 7 September 2026

Valais valley with main road, Valese-Italy border commute scene

Villeneuve is a destination for border workers working in Valais. Discover G permits, taxes at source, LAMal, AVS, LPP, refunds and transfer procedures.

Context

In brief

Villeneuve (Aosta Valley) is a strategic base for working in Valais (Switzerland)
New Cross-Border Workers Agreement: in effect from January 1, 2024
G permit for cross-border workers, mandatory LAMal in Switzerland
Withholding tax deducted only in Switzerland, tax credit in Italy

Key facts

What: Cross-border worker residing in Villeneuve (Italy), employed in Valais (Switzerland)
When: New Cross-Border Workers Agreement active from January 1, 2024
Where: Villeneuve (Aosta Valley, Italy) ↔ Valais (Switzerland)
Permit: G permit for cross-border workers; mandatory LAMal in Switzerland
Taxes: Withholding tax exclusively in Switzerland; tax credit in Italy

---

Villeneuve, a municipality in the Aosta Valley, represents a strategic choice for those who wish to work in Valais (Switzerland) while remaining resident in Italy. The geographical position of Villeneuve, close to the Valais border, allows for easy access to the main work centers in Swiss Valais while maintaining the Italian cost of living. Thousands of cross-border workers travel this route daily, benefiting from the tax and social security arrangements provided by the Italy-Switzerland bilateral agreements.

The New Cross-Border Workers Agreement: what changes from 2024

From January 1, 2024, the New Cross-Border Workers Agreement (signed on December 23, 2020, and ratified by Italy with Law 83 of June 13, 2023) regulates cross-border work conditions between Italy and Switzerland. The agreement introduces progressive tax deductions and protections for social security benefits: old cross-border workers (those already in the system before July 17, 2023) enjoy an exemption up to 7,500 euros annually with a transitional regime from 2024 to 2033, while new cross-border workers benefit from a 10,000 euro allowance.

…

Operational details

Living in Villeneuve: cost of living and practical considerations

Villeneuve offers a lower cost of living than Swiss centres, allowing frontier workers to maximise their gross savings. However, commuting involves fuel costs, car maintenance, vehicle insurance, and potentially tolls on highways if the route includes them. These elements must be calculated in the overall balance sheet with respect to a Swiss salary.

Quality of life in Villeneuve includes access to Italian services (healthcare, school, entertainment) at lower prices than in Switzerland, a significant advantage for families with children or elderly dependants. At the same time, it is necessary to check the specific distances from the main employers in Valais and plan travel times according to seasonal conditions.

Social protection: AVS, LPP and LAMal as border crossers

A critical aspect of the choice to live in Villeneuve and work in Valais concerns social and social security protection.

AVS (Old Age, Survivors and Disability Insurance): As an employed border worker in Switzerland, you automatically pay AVS contributions at 5.3% of salary (as an employee). These contributions accumulate towards a life annuity from the legal retirement age.

LPP (Occupational Pension): The Swiss employer enrolls the border worker in an occupational pension fund (LPP). I

Useful planning tools

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

Key points

Procedure to become a commuter Villeneuve-Vallese: step-by-step

Step 1 – Obtain a job offer in Valais First, secure a binding job offer from a Swiss employer operating in Valais. The offer must specify the role, annual salary, and start date. Many Swiss employers are familiar with the G Permit process and assist Italian candidates in completing the applications.

Step 2 – Apply for the G Permit With the job offer in hand, approach the competent cantonal office in Valais to submit the G Permit application. You will need to provide a valid Italian passport, a signed job offer, a residence certificate from Villeneuve (Italian registry), and possibly previous tax declarations. Processing times range from 2 to 4 weeks. Once approved, the G Permit is valid for one year and renewable.

Step 3 – Register with AVS/LPP through the Swiss employer The employer automatically registers the commuter with the AVS and LPP schemes. You will receive an AVS number to keep for your entire career. It is essential to verify that contributions are regularly recorded by checking the AVS statement at a compensation office or online.

Step 4 – Choose health insurance (LAMal or INPS) Decide whether to join a Swiss health insurance fund (LAMal) or maintain INPS Italian insurance thanks to the right of option. If you choose LAMal, contact a Valais health insurance fund and present the G Permit, identity document, and residence. If you opt for Italian INPS, ensure your registration is up-to-date and that Swiss work periods are recognized as contributions through the Italy-Switzerland Convention.

…

Frequently Asked Questions

If I live in Villeneuve and work in Valais, where do I pay taxes?: Tax at source is only withheld from your salary by Switzerland. Italy recognises a tax credit in your annual return (Form 730, EC Framework) to avoid double taxation. You do not pay simultaneous taxes in both countries. The Italian-Swiss Convention of 9 December 1976 regulates this mechanism.
What is the difference between Permit G and Permit B for those living in Villeneuve?: The G Permit is for border workers: it allows them to work in Valais while remaining resident in Villeneuve (Italy), renewable annually. Permit B is for residents: it requires you to transfer your tax residence to Switzerland, with different tax and social security implications. For those who want to maintain their Italian residence, the G Permit is the natural choice.
Should I choose Swiss LAMal or stay with Italian INPS as a border agent?: You have the right of option as a Group G border crossing: you can choose Swiss LAMal (CHF 300-2,500 per year deductible, full coverage in Switzerland) or keep the Italian INPS (Italian healthcare covered). If you work predominantly in Valais, LAMal is generally preferable. If you come back frequently for doctor visits, INPS may be more convenient. Consider case-by-case.
Does the New Frontier Agreement entitle me to an automatic tax deduction?: Yes. If you are an old frontier worker (before 17 July 2023), you benefit from an exemption of up to 7,500 euros per year under the transitional regime 2024–2033. If you are a new frontier worker, you have a €10,000 deductible. These deductions reduce taxable income in Italy. Check with your accountant if your situation qualifies for the maximum deduction.
Is it economically convenient to live in Villeneuve and work in Valais?: It depends on the specific company, commuting costs and your personal situation. Villeneuve has an Italian cost of living (lower than Swiss Valais), but the distance from major employers in Valais is variable. Use the salary calculator to compare net and freight costs. The main advantage is the lower cost of living during leisure time; the disadvantage is the potentially longer commute.