How much do I pay in Switzerland as a border worker?

As a border crossing with G Permit, you pay AVS/AI/IPG at 5.3% (employee share), AD/AC at 1.1% up to CHF 148,200 per annum, LAINF 0.7-1.5% by industry, and LPP 7–18% by age (from 25th year). These amounts are automatically withheld from the paycheck by the employer in Graubünden. Switzerland remains the primary place of taxation for income tax at source on employed income.

Does Italy tax me on my Swiss salary again?

Italy does not apply a double withholding on Swiss employment income. It recognizes the tax credit in the EC framework of the model 730 for taxes already paid in Switzerland. The exemption of €10,000 (or €7,500 if cross-border before 17 July 2023) further reduces the Italian tax base, minimising the IRPEF due. This mechanism is regulated by the Italian-Swiss Convention of 9 March 1976.

What happens if I choose the Swiss LAMal instead of the Italian system?

With Permit G you have the right of option on LAMal (Swiss health insurance). If you choose to insure in Switzerland, you pay an annual deductible between CHF 300 and CHF 2,500 depending on your chosen plan and your risk profile. If you remain in the Italian system, you contribute through national channels without additional specific charges for border crossers. The choice must be communicated to the Swiss employer and the canton.

In what year did the New Frontier Agreement come into force?

The New Frontier Agreement was signed on 23 December 2020 and entered into force on 1 January 2024, after Italian ratification by Law 83 of 13 June 2023. The effects on deductibles, refunds and administrative simplifications apply in full from that date onwards. If you were already a border worker before 17 July 2023, you are entitled to a transitional regime until 2033.

Am I entitled to a tax refund as a border worker?

Yes. If the sum of the taxes paid in Switzerland, after the application of the tax credit in Italy, is higher than the total amount due in the two countries, you receive a refund through the Italian declaration (form 730, EC framework). The amount depends on your total income and the rates applied. The refund is generally paid within a few months of the electronic transmission to the Revenue Agency.

Moving to Berbenno: the guide of the Graubünden border crossing

Di Redazione Frontaliere Ticino · Published on 3 September 2026 · Updated on 25 September 2026

Aerial view of Alpine valley with Italy-Switzerland border crossing and highway infrastructure connecting Ticino and Lombardy regions

Berbenno-Grisioni Frontier? Guide to taxes, AVS contributions, LAMal and economic convenience of working in Switzerland and living in Italy.

Context

In brief

New Cross-Border Workers Agreement from 1 January 2024: new Italian-Swiss tax rules
Allowance of €10,000 for new cross-border workers, €7,500 for old (transitional regime until 2033)
Withholding tax deducted ONLY in Switzerland: AVS 5.3% + other contributions
Optional Swiss LAMal: annual deductible CHF 300–2,500

Key facts

What: New Cross-Border Workers Agreement with allowances and simplified tax regime
When: Effective from 1 January 2024
Who: Cross-border workers with Permit G residing in Italy and working in Switzerland
Where: Graubünden (Switzerland) and Berbenno di Valtellina (Lombardy, Italy)
AVS rate: 5.3% (employee share)
Allowance for new cross-border workers: €10,000 annually on Italian income

Those living in Berbenno di Valtellina and working in Graubünden fall within the intersection of two tax systems. From 1 January 2024, the New Cross-Border Workers Agreement (signed on 23 December 2020, ratified by Italy with Law 83 of 13 June 2023) regulates the tax treatment of those working in Switzerland and residing in Italy.

The key rule: the withholding tax on employment income is deducted only in Switzerland. Italy does not practice double withholding but applies the tax credit in the CE section of the 730 form to avoid double taxation. The Italian-Swiss Convention to avoid double taxation, signed on 9 March 1976, constitutes the normative foundation of this mechanism.

The New Agreement has introduced a crucial element: the allowance on Italian income. Cross-border workers who acquired the status after 17 July 2023 benefit from an allowance of €10,000 annually. Those who were already cross-border workers before that date enjoy an exemption of €7,500, with a transitional regime valid until 2033. This means that the Italian taxable base is reduced by this amount before the application of the tax.

What changes in the Swiss pay slip

Swiss social contributions are deducted directly by the employer in Graubünden. The cross-border worker pays:

AVS (Old-Age and Survivors' Insurance)/AI (Disability Insurance)/IPG (Income Replacement Allowance): 5.3% (employee share)
AD (Unemployment Insurance)/AC: 1.1% annually up to CHF 148,200
LAINF (Accident Insurance): 0.7–1.5% depending on the sector
LPP (Occupational Pension Scheme, 2nd pillar): 7–18% based on age (from the 25th year)

In Italy, IRPEF is applied in brackets: 23% up to €28,000, 33% from €28,001 to €50,000, 43% over €50,000. However, the allowance of €10,000 (or €7,500 for old cross-border workers) significantly reduces the Italian taxable base.

Swiss health insurance and the available option

The LAMal (Swiss health insurance) represents a relevant decision. Cross-border workers with Permit G have the right to choose: they can remain in the Italian health system or join a Swiss health insurance fund. If they choose LAMal, the annual deductible varies from CHF 300 to CHF 2,500 depending on the chosen level of coverage. Those who remain in the Italian system contribute through the national mandatory regime without additional cross-border costs.

Operational details

If you have decided to move to Berbenno and work in the Graubünden, the economic convenience assessment requires looking beyond the gross salary. The tax structure and double taxation mechanisms offer concrete advantages for those who know how to read them. A typical scenario: a cross-border worker with an annual gross Swiss income is subject to withholding in Switzerland (AVS 5.3% + contributions for about 8–10% of the gross). Then they declare the income in Italy, where they benefit from a €10,000 exemption that reduces the taxable base. If the gross income is modest, it might not even exceed the highest IRPEF brackets, generating a favorable overall tax burden compared to a traditional Italian worker.

Cost of Living and Geographical Advantages of Valtellina Berbenno di Valtellina is located in the province of Sondrio, in Valtellina. The area generally has a lower cost of living compared to the larger urban agglomerations in Ticino, with lower real estate prices and rents. At the same time, the geographical proximity to the Graubünden and the border crossings (such as Brogeda) represents a logistical advantage: commuting times remain manageable for those working in Switzerland. A cross-border worker residing in Berbenno maintains access to Italian services and communities—school, local healthcare, commerce—while working and contributing to a Swiss pension system (AVS/LPP). In the long term, this hybrid can be advantageous: the Swiss AVS pension is generally higher than the Italian pension for equivalent contribution amounts.

Crucial Decisions: Employer and Insurance

The choice of canton and company in the Graubünden influences the contribution burden and social services. Some employers in the Graubünden offer generous private LPP coverage, which increases the cross-border worker's pension savings beyond the legal minimum. The choice of health insurance (Swiss LAMal versus the Italian system) depends on the health profile and family needs. Those who opt for LAMal must evaluate the chosen deductible and the annual premium; those who remain in the Italian system do not incur additional cross-border costs beyond national contributions.

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 the decision to move to Berbenno and work in Graubünden is final, the administrative procedure includes some crucial steps. Each phase has its own deadlines and precise tax consequences that no cross-border worker should underestimate.

Discover Ticino job offers updated daily: 4,000+ positions from Swiss companies hiring cross-border workers.

Frequently Asked Questions

How much do I pay in Switzerland as a border worker?: As a border crossing with G Permit, you pay AVS/AI/IPG at 5.3% (employee share), AD/AC at 1.1% up to CHF 148,200 per annum, LAINF 0.7-1.5% by industry, and LPP 7–18% by age (from 25th year). These amounts are automatically withheld from the paycheck by the employer in Graubünden. Switzerland remains the primary place of taxation for income tax at source on employed income.
Does Italy tax me on my Swiss salary again?: Italy does not apply a double withholding on Swiss employment income. It recognizes the tax credit in the EC framework of the model 730 for taxes already paid in Switzerland. The exemption of €10,000 (or €7,500 if cross-border before 17 July 2023) further reduces the Italian tax base, minimising the IRPEF due. This mechanism is regulated by the Italian-Swiss Convention of 9 March 1976.
What happens if I choose the Swiss LAMal instead of the Italian system?: With Permit G you have the right of option on LAMal (Swiss health insurance). If you choose to insure in Switzerland, you pay an annual deductible between CHF 300 and CHF 2,500 depending on your chosen plan and your risk profile. If you remain in the Italian system, you contribute through national channels without additional specific charges for border crossers. The choice must be communicated to the Swiss employer and the canton.
In what year did the New Frontier Agreement come into force?: The New Frontier Agreement was signed on 23 December 2020 and entered into force on 1 January 2024, after Italian ratification by Law 83 of 13 June 2023. The effects on deductibles, refunds and administrative simplifications apply in full from that date onwards. If you were already a border worker before 17 July 2023, you are entitled to a transitional regime until 2033.
Am I entitled to a tax refund as a border worker?: Yes. If the sum of the taxes paid in Switzerland, after the application of the tax credit in Italy, is higher than the total amount due in the two countries, you receive a refund through the Italian declaration (form 730, EC framework). The amount depends on your total income and the rates applied. The refund is generally paid within a few months of the electronic transmission to the Revenue Agency.