What are the main differences between Leave G and Leave B?

The G Permit is for border workers who reside in Italy and work in Switzerland on a daily basis, with taxation in Switzerland and exemption regime (€7,500 or €10,000 from 2024). Permit B is for those residing in Switzerland, with taxation in Switzerland on Swiss income but without deductible. Permit G allows you to maintain Italian rights (family, property, Italian school), while Permit B requires permanent residence in Switzerland and complete transfer of the family unit.

How do I recover the Swiss tax credit on my Italian return?

In the Italian declaration (form 730), the border worker declares the Swiss gross income in the EC framework (foreign income) and specifies the tax withheld in Switzerland. The Revenue Agency automatically applies the tax credit, comparing the Italian tax with the Swiss one and recognizing the lower charge paid in Switzerland. The Italy-Switzerland Double Taxation Convention (9 December 1976) guarantees this mechanism.

Is the €7,500 or €10,000 deductible scheme permanent?

No. For old frontier workers (status acquired before 17 July 2023), the exemption of €7,500 is provided for on a transitional basis until 2033. New frontier workers (post-17 July 2023) are entitled to €10,000. The New Frontier Agreement was conceived with an expiry date of 2033, after which the tax regime could be reviewed by the Swiss and Italian authorities.

Should I keep my residence in Italy if I work in Switzerland on a long-term basis?

It depends on your personal situation. If you have a family, children in Italian schools, real estate in Italy or strong social ties, Permit G allows you to maintain Italian rights and benefit from the tax exemption (valid at least until 2033). If the intention is permanent in Switzerland, Permit B eliminates the double declaration and mobility costs, even if it requires the transfer of the family unit to Switzerland.

What are the hidden costs of the G Leave other than taxes?

The highest costs are related to mobility: fuel, motorway tolls (A2 towards Basel, A9 towards Como), vehicle wear and tear, travel time (often 1-2 hours a day from border municipalities such as Chiasso or Brogeda). The complexity of the double tax return (Italian form 730 + Swiss return) may require tax advice. In addition, changes of employer involve administrative notifications to the Swiss (SEM) and Italian authorities.

Border permit G: advantages and disadvantages (cross-border guide)

Di Marco Ferrari · Published on 26 August 2026

Pros and cons of Permit G from 2024: tax, social security, health, mobility. When it is convenient for border crossers Ticino-Italy and how to proceed.

Context

In Brief

New Cross-Border Worker Agreement in force from 1 January 2024
Withholding tax levied only in Switzerland, no double taxation
Existing cross-border workers: exemption €7,500, new cross-border workers: €10,000
Permit G allows job mobility among Swiss employers

Key Facts

What: Permit G for cross-border work
When: New Agreement in force from 1 January 2024 (signed 23 December 2020)
Where: Ticino-Italy border (checkpoints Brogeda, Chiasso, Gaggiolo)
Who: Residents in Italy working in Switzerland
Amount: Exemption €7,500 (pre-17 July 2023), €10,000 (post-17 July 2023)

Permit G represents the most common status for those residing in Italy and working in Switzerland, particularly in the Ticino-Italy cross-border region. From 1 January 2024, with the entry into force of the New Cross-Border Worker Agreement (signed on 23 December 2020 and ratified in Italy with Law 83 of 13 June 2023), the regulatory and tax framework governing cross-border work has undergone significant changes.

Taxation represents one of the central aspects of Permit G. Contrary to what many believe, withholding tax on employment income is levied only in Switzerland, not in both countries. This principle, established by the Italy-Switzerland Double Taxation Convention of 9 December 1976, avoids double taxation. Italy recognizes the tax credit in the EC section of the tax return (form 730), allowing cross-border workers to recover what is owed to the Swiss tax authorities.

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Operational details

Tax and social security benefits

The G Leave offers a considerable advantage from a social security point of view. Contributions paid in Switzerland (AVS/AI/IPG at 5.3% as an employee share, plus AD/AC at 1.1% with cap CHF 148'200, and LAINF accident coverage between 0.7% and 1.5%) are recognised by the Italian INPS system. This means that the frontier earns years of contribution recognised by both countries, a crucial advantage for future retirement. The LPP (Swiss Occupational Pillar Old Age Insurance), with rates ranging from 7% to 18% depending on the age group from 25 onwards, also makes it possible to constitute a significant second pillar.

From a health point of view, the border worker with Permit G has the right of option to choose between Swiss health insurance (LAMal) and Italian health insurance. LAMal, the mandatory health insurance in Switzerland, provides deductibles for adults ranging from CHF 300 to CHF 2,500, depending on the insurance product chosen. This flexibility allows the border crosser to assess which system offers the best protection in relation to their specific needs and economic situation.

Work mobility: advantages and limitations

Another advantage of the G Permit concerns work mobility within the Swiss territory. The border worker can change employer with simplified administrative procedures, maintaining the status

Key points

How to Choose Permit G and Proceed

The choice between Permit G and other forms of authorization (such as Permit B for residents) depends on a careful evaluation of personal costs and benefits. If the cross-border worker has family, children in Italian schools, real estate property in Italy, or other significant ties in Italian territory, Permit G remains the most advantageous solution. Especially for old cross-border workers (status pre-July 17, 2023), the exemption of €7,500 and the transitional regime until 2033 represent a favorable taxation opportunity.

Conversely, if the intention is to settle permanently in Switzerland (perhaps for a marriage relationship, children in Swiss schools, or long-term work in Switzerland), the Residential Permit B could be more convenient from a fiscal and administrative perspective, eliminating the double income tax reporting and mobility costs.

Practical Procedure and Deadlines

To maintain or request Permit G, the cross-border worker must:

1. Enter into a dependent employment contract with an employer registered in Switzerland 2. Declare stable residence in Italy with the municipal authorities 3. Register with the Population Office (SEM) of the competent jurisdiction 4. Complete the Swiss tax return annually with the Federal Tax Administration (AFC) or the competent cantonal administration 5. Submit the 730 form annually in Italy, indicating the Swiss tax credit in section CE

Any change of employer requires notification to the competent Swiss authorities, although procedures have been simplified with the New Agreement 2024.

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Frequently Asked Questions

What are the main differences between Leave G and Leave B?: The G Permit is for border workers who reside in Italy and work in Switzerland on a daily basis, with taxation in Switzerland and exemption regime (€7,500 or €10,000 from 2024). Permit B is for those residing in Switzerland, with taxation in Switzerland on Swiss income but without deductible. Permit G allows you to maintain Italian rights (family, property, Italian school), while Permit B requires permanent residence in Switzerland and complete transfer of the family unit.
How do I recover the Swiss tax credit on my Italian return?: In the Italian declaration (form 730), the border worker declares the Swiss gross income in the EC framework (foreign income) and specifies the tax withheld in Switzerland. The Revenue Agency automatically applies the tax credit, comparing the Italian tax with the Swiss one and recognizing the lower charge paid in Switzerland. The Italy-Switzerland Double Taxation Convention (9 December 1976) guarantees this mechanism.
Is the €7,500 or €10,000 deductible scheme permanent?: No. For old frontier workers (status acquired before 17 July 2023), the exemption of €7,500 is provided for on a transitional basis until 2033. New frontier workers (post-17 July 2023) are entitled to €10,000. The New Frontier Agreement was conceived with an expiry date of 2033, after which the tax regime could be reviewed by the Swiss and Italian authorities.
Should I keep my residence in Italy if I work in Switzerland on a long-term basis?: It depends on your personal situation. If you have a family, children in Italian schools, real estate in Italy or strong social ties, Permit G allows you to maintain Italian rights and benefit from the tax exemption (valid at least until 2033). If the intention is permanent in Switzerland, Permit B eliminates the double declaration and mobility costs, even if it requires the transfer of the family unit to Switzerland.
What are the hidden costs of the G Leave other than taxes?: The highest costs are related to mobility: fuel, motorway tolls (A2 towards Basel, A9 towards Como), vehicle wear and tear, travel time (often 1-2 hours a day from border municipalities such as Chiasso or Brogeda). The complexity of the double tax return (Italian form 730 + Swiss return) may require tax advice. In addition, changes of employer involve administrative notifications to the Swiss (SEM) and Italian authorities.