What is the difference between the old and new frontier allowance in the New Frontier Agreement 2024?

According to the New Frontier Agreement that entered into force on 1 January 2024, new frontier workers (acquired status after 17 July 2023) are entitled to a deductible of CHF 10,000 on declared income in Italy. Those who were already border workers before that date enjoy an exemption of CHF 7,500, but within a transitional regime that will last until 2033. This differentiation has a direct impact on the Italian tax base: income up to the deductible is exempt from personal income tax, while the surplus is taxed at progressive rates (23%, 33%, 43%).

How does the tax credit work to avoid double taxation between Italy and Switzerland?

Tax at source is withheld ONLY from Switzerland on earned income. Italy avoids double taxation through the tax credit system regulated by the Italian-Swiss Convention of 9 March 1976. The border worker completes the EC framework of the Italian tax return (form 730) and reports the withheld tax at source in Switzerland, which is automatically deducted from the IRPEF due. If the credit exceeds the Italian tax, the refund is triggered.

What are the main contributions that a border worker has to pay in Switzerland?

In Switzerland, the social contributions withheld on the paycheck are: AVS/AI/IPG at 5.3% borne by the employee, AD/AC at 1.1% (with a maximum ceiling of CHF 148,200 of income), LAINF from 0.7% to 1.5% according to the sector, LPP (second pension pillar) from 7% to 18% according to the age group (from 25 years onwards). For a 30-year-old frontier worker, the sum of these contributions reduces the monthly gross by about 15-18%.

Do I have the right to Swiss LAMal even if I reside in Italy as a border worker?

Yes. Border workers with G Permit have the right of option: they can choose to enroll in Swiss health insurance (LAMal) or maintain equivalent Italian coverage. LAMal is a legal obligation in Switzerland. The adult deductibles for LAMal range from CHF 300 to CHF 2,500 per year, which means that the border worker directly bears the health costs up to that ceiling before the insurance covers the expenses.

What is the validity of Permit G and how is it renewed?

Permit G authorizes frontier work for up to 8 consecutive years and is renewable. The renewal request must be submitted within 30 days before the deadline to the cantonal administration of Graubünden (or through the employer). Permit G does not authorise self-employment or self-employment in Switzerland, but is valid for employment relationships.

Living in San Giacomo Filippo and working in Graubünden

Di Redazione Frontaliere Ticino · Published on 7 September 2026 · Updated on 25 September 2026

Parked car on a mountain road in Ticino at sunset, with Alpine peaks of Graubünden in the background

New Frontier Agreement 2024, taxation, LAMal and AVS: the complete guide to move to San Giacomo Filippo and work in Graubünden as a border worker.

Context

In a nutshell

New Frontier Agreement in force from 1 January 2024, CHF 10,000 excess for new frontier workers
Tax at source withheld ONLY in Switzerland, tax credit in Italy via EC framework of 730
AVS/AI/IPG contributions 5.3%, LAINF 0.7-1.5%, LPP 7-18% according to age

Key facts

Agreement: New Frontier Agreement, signed December 23, 2020
Effective: 1 January 2024 (IT ratification: Law 83 of 13 June 2023)
New frontier workers' allowance: CHF 10,000 (old frontier workers: CHF 7,500 until 2033)
Tax: Withheld ONLY in Switzerland, NO double taxation with tax credit
Basic Convention: Italian-Swiss Convention of 9 March 1976
Work permit: G permit valid for up to 8 years renewable

The new border tax regime from 1 January 2024

Commuting between San Giacomo Filippo, a municipality in the province of Brescia in Lombardy, and Graubünden is a well-established choice for those looking for job opportunities beyond national borders. Since the New Frontier Agreement entered into force on 1 January 2024 (ratified in Italy by Law 83 of 13 June 2023), the tax and contribution rules governing the cross-border employment relationship have undergone substantial changes. The new regime redesigns the economic burdens and administrative responsibilities of those who reside in Italy and work in Switzerland, drawing a clear distinction between already established border workers and new border workers.

Who

Operational details

Work permit and social rights for cross-border commuters

To work legally in Graubünden as a resident of Italy, the Permit G is essential, which authorizes cross-border work for up to 8 consecutive years with the possibility of renewal. The Permit G is managed by the Graubünden cantonal administration and represents the legal basis for daily commuting. Those residing in San Giacomo Filippo and having a job offer in Graubünden can apply for the Permit G directly with the Swiss employer or through a specialist consultant in cross-border work permits.

One of the main changes introduced by the New Cross-Border Agreement concerns health insurance (LAMal). Cross-border commuters with Permit G have the right to choose: they can opt to enroll in Swiss health insurance or maintain Italian coverage, provided the latter is equivalent. The adult deductibles for Swiss LAMal range from CHF 300 to CHF 2,500 annually, meaning the cross-border commuter bears the direct health costs up to that ceiling before the insurance intervenes.

Practical implications on the pay slip and tax return

Those living in San Giacomo Filippo and working in Graubünden will see deductions for AVS, AI, IPG, LAINF, and LPP on their Swiss pay slip. These reductions are mandatory and non-negotiable, although the Swiss employer is required to communicate them transparently. The gross monthly salary, therefore, is reduced by the sum of these contributions, which for a person aged 25 to 35 (due to LPP in this age bracket) is considerable compared to Italian contributions alone.

Once the Italian tax return is completed, the cross-border commuter must indicate the total income earned in Graubünden in section CE of the 730 form, where they automatically benefit from the tax credit corresponding to the withholding tax deducted in Switzerland. This mechanism avoids double taxation: Italy recognizes the taxes paid in Switzerland and subtracts them from its taxable base.

Advantages and disadvantages of moving to San Giacomo Filippo

Advantages for the cross-border commuter:

Generally higher salaries in Graubünden compared to the Italian border territory
Right to AVS, AI, IPG, LPP even if residing in Italy (consolidated pension rights in Switzerland)
Generally lower cost of living in San Giacomo Filippo compared to Ticino
Geographical proximity to the workplace for those with a southern Graubünden location (Sondrio, Chiavenna, Morbegno)
Possibility to benefit from the CHF 10,000 (or CHF 7,500 if already a cross-border commuter) exemption on the Italian declaration

Disadvantages for the cross-border commuter:

Daily commuting on mountain roads often subject to winter weather and seasonal closures
Complex fiscal and administrative issues arising from two different regulatory systems
Transportation costs, Swiss motorway vignette, fuel, and vehicle maintenance
Limitations in career options: Permit G does not authorize self-employment or liberal professions in Switzerland
Need to manage two health and social security systems simultaneously

Useful planning tools

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

Key points

Step-by-step procedure for the transfer and start of the employment relationship

Before making the final decision to move to San Giacomo Filippo, it is essential to follow a logical sequence of administrative and legal obligations. The first step is to obtain a formal job offer in the Graubünden: no permit can be requested without a signed employment contract. The Swiss employer is the first actor in the procedure. Once in possession of the employment letter, it is possible to apply for the Permit G with the competent cantonal authority of the Graubünden (or through the employer themselves). The Permit G is valid for up to 8 years and must be renewed if you intend to continue commuting.

Simultaneously, you must notify the change of residence to the Italian Tax Agency: if you move from another municipality to San Giacomo Filippo, it is mandatory to register the new address with the local community office within the deadlines set by municipal regulations. In parallel, you must register with AVS/AI in Switzerland: the Swiss employer will request an AVS number (Social Security Number). If you do not have one, you must request it from the cantonal compensation fund through the preliminary registration procedure.

Within three months of starting work, it is mandatory to take out health insurance (LAMal) with a Swiss insurance company (or maintain certified Italian coverage as equivalent). LAMal is a legal obligation in Switzerland, and lack of coverage exposes the commuter to penalties and refusal of care. Most commuters in Lombardy opt for Swiss LAMal due to the transparency of costs and broader coverage.

It is advisable to open a bank account in Switzerland: many Swiss employers require a Swiss bank account for salary payments to simplify payroll management and contributions. Finally, register with the municipality of San Giacomo Filippo to complete local administrative obligations related to residence.

Crucial deadlines for the commuter

Permit G: To be requested BEFORE starting work. The procedure takes an average of 2-4 weeks.
Italian tax return: By November 30 of the following year (model 730 or Unico, with the possibility of extension through an accountant).
Renewal of Permit G: Within 30 days before expiration, every 8 years.
Notification of change of residence: Within 8 days of the actual move to the registry office of San Giacomo Filippo.

Tools and resources available to the commuter

To verify the concrete tax impact of your decision to move to San Giacomo Filippo, use our net salary calculator to simulate the commuter's pay slip month by month, taking into account all Swiss contributions (AVS/AI/IPG/LAINF/LPP) and Italian tax treatment. You can also consult the dedicated article on Permit G for a detailed procedure and release times, and use the comparison between Permit G and Permit B if you intend to consider a more permanent move (Permit B = stable residence).

Stay informed about regulatory developments: cross-border taxation is constantly evolving. The New Cross-Border Agreement, although it came into force on January 1, 2024, will be subject to periodic reviews during the transitional regime 2024-2033. Regularly monitor the Italian Tax Agency portal and communications from the cantonal compensation fund of the Graubünden for any updates regarding tax credit, exemption, and CE summary declaration.

Frequently Asked Questions

What is the difference between the old and new frontier allowance in the New Frontier Agreement 2024?: According to the New Frontier Agreement that entered into force on 1 January 2024, new frontier workers (acquired status after 17 July 2023) are entitled to a deductible of CHF 10,000 on declared income in Italy. Those who were already border workers before that date enjoy an exemption of CHF 7,500, but within a transitional regime that will last until 2033. This differentiation has a direct impact on the Italian tax base: income up to the deductible is exempt from personal income tax, while the surplus is taxed at progressive rates (23%, 33%, 43%).
How does the tax credit work to avoid double taxation between Italy and Switzerland?: Tax at source is withheld ONLY from Switzerland on earned income. Italy avoids double taxation through the tax credit system regulated by the Italian-Swiss Convention of 9 March 1976. The border worker completes the EC framework of the Italian tax return (form 730) and reports the withheld tax at source in Switzerland, which is automatically deducted from the IRPEF due. If the credit exceeds the Italian tax, the refund is triggered.
What are the main contributions that a border worker has to pay in Switzerland?: In Switzerland, the social contributions withheld on the paycheck are: AVS/AI/IPG at 5.3% borne by the employee, AD/AC at 1.1% (with a maximum ceiling of CHF 148,200 of income), LAINF from 0.7% to 1.5% according to the sector, LPP (second pension pillar) from 7% to 18% according to the age group (from 25 years onwards). For a 30-year-old frontier worker, the sum of these contributions reduces the monthly gross by about 15-18%.
Do I have the right to Swiss LAMal even if I reside in Italy as a border worker?: Yes. Border workers with G Permit have the right of option: they can choose to enroll in Swiss health insurance (LAMal) or maintain equivalent Italian coverage. LAMal is a legal obligation in Switzerland. The adult deductibles for LAMal range from CHF 300 to CHF 2,500 per year, which means that the border worker directly bears the health costs up to that ceiling before the insurance covers the expenses.
What is the validity of Permit G and how is it renewed?: Permit G authorizes frontier work for up to 8 consecutive years and is renewable. The renewal request must be submitted within 30 days before the deadline to the cantonal administration of Graubünden (or through the employer). Permit G does not authorise self-employment or self-employment in Switzerland, but is valid for employment relationships.