What is the G permit and how do I get it?

The G permit is an annual work permit issued by SEM (Migration Services) to border workers residing in Italy and working in Switzerland. This is required by the Swiss employer as part of the recruitment procedure. It is valid for 12 months and renewable and allows daily return to Italy. The application is forwarded by the employer to SEM Bern; the border worker receives the permit within 4-8 weeks.

Where do I pay taxes: in Italy or Switzerland?

Tax at source is withheld by the Swiss employer on the paycheck. Italy does not collect additional taxes on Swiss labour income thanks to the tax credit in the EC framework of 730. If you have Italian income (rentals, capital), that remains subject to Italian personal income tax, unless it falls within the deductible of €10,000 (new frontier workers) or €7,500 (old frontier workers until 2033).

How does the AVS pension work and can I stay enrolled in the Italian INPS?

You work in Switzerland, pay Swiss AVS contributions to the canton of Graubünden and accumulate Swiss pension rights. You are not required to remain enrolled in INPS, but if you would like reunification contributions for previous Italian work periods, please contact INPS before you terminate enrollment. You can apply for your AVS pension at the age of 64-65 at the cantonal AVS office.

What happens if I choose the Swiss LAMal instead of staying in the Italian SSI?

By choosing LAMal Switzerland, you pay a monthly premium (between CHF 300 and CHF 2,500) and are covered by the Swiss healthcare system. If you stay in the Italian SSI, you do not pay additional premiums, but you pay a Swiss figurative salary for retirement. Both choices are valid; the decision depends on your health needs and mobility.

What are the tax advantages of the New Frontier Agreement 2024?

The New Agreement (effective from 1 January 2024) introduces a deductible of €10,000 for new frontier workers on Italian income from foreign capital, rent and pensions. Previous frontiersmen keep €7,500 until the end of 2033. Once the deductible has been exceeded, the excess income is taxed at IRPEF. In addition, the Swiss tax is always offset by the Italian tax credit.

From Schilpario to the Graubünden: living as a border worker (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 7 September 2026

View from the Grisons towards Lombardy: cross-border Alpine landscape for commuters

Permit G, taxation, tax at source, AVS and LAMal: find out how the tax regime works for border workers living in Schilpario and working in Graubünden.

Context

In brief

Permit G to work from Italian residence in Switzerland
New 2024 Agreement: €10,000 exemption for new cross-border commuters
Withholding tax retained only by the Swiss employer
AVS, LAMal and pension according to Swiss regulations

Key facts

What: Tax and pension regularization for cross-border commuters
When: From January 1, 2024 (New Agreement in force)
Where: Chiasso, Brogeda, Gaggiolo border crossings towards Graubünden
Who: G permit holders residing in Italy
Exemption: €10,000 for new cross-border commuters
Tax: Retained by the Swiss employer
Pension: Managed according to Swiss AVS/LPP regulations

Who is a cross-border commuter and how to regularize

Those who choose to live in Schilpario and work in Graubünden sign a Swiss employment contract and obtain the G permit (cross-border commuter). This status regularizes the tax and pension situation according to the Convention between Italy and Switzerland of December 9, 1976, and the New Cross-Border Agreement, which came into force on January 1, 2024.

The Swiss employer withholds the withholding tax on the pay slip according to Swiss regulations. There is no double taxation: Italy recognizes the tax credit through the CE section of the income tax return (Model 730). The cross-border commuter pays taxes directly in Switzerland and not in Italy on employment income.

Law 83 of June 13, 2023, ratified the New Agreement in Italy. New cross-border commuters (hired after July 17, 2023) benefit from a €10,000 exemption on Italian income from capital, rent, or foreign pensions. Cross-border commuters already in service before that date enjoy a reduced exemption of €7,500, but in a transitional regime until December 31, 2033.

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Operational details

How the taxation of cross-border commuters works

The withholding tax is directly deducted by the Swiss employer from the pay slip. In Switzerland, mandatory social contributions are also paid: AVS 5.3% (bearer of the employee), unemployment insurance AD/AC 1.1%, accident insurance LAINF between 0.7% and 1.5%, supplementary pension LPP between 7% and 18% depending on age.

Italy does not collect additional taxes on Swiss income thanks to the tax credit in the CE section of the 730. However, if the cross-border commuter owns real estate or rentals in Italy, that income remains subject to IRPEF: 23% up to €28,000, 35% between €28,001 and €50,000, 43% over €50,000.

The New Agreement 2024 introduces a tax exemption that exempts Italian income up to €10,000 for new cross-border commuters. Old cross-border commuters retain a tax exemption of €7,500 until 2033. Above the threshold, the entire amount is taxed according to IRPEF.

Pension and choice of health insurance

The cross-border commuter is compulsorily registered with the Swiss AVS and accumulates Swiss pension rights. The AVS contributions (5.3%) are managed by the canton of Graubünden. The LPP (second pillar) is mandatory if the income exceeds a minimum and varies from 7% to 18% depending on age. Together, AVS and LPP form the basis of the Swiss pension.

For health insurance, the cross-border commuter has the right to choose: they remain in the Italian National Health Service or opt for Swiss LAMal. If they choose Swiss LAMal, they pay a monthly premium (between CHF 300 and CHF 2,500 depending on the deductible). If they remain in the SSI, they do not pay premiums, but contribute with a Swiss notional wage for the calculation of the pension.

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Key points

What to do before signing the contract

Before signing the employment contract, the Swiss employer requires the cross-border worker to submit a registration notification to the Italian INPS. This notification records the cross-border employment relationship in the Italian archives and ensures the correct payment of IVS contributions (Invalidity, Old Age, Survivors). The cross-border worker must go to the INPS office in their place of residence (or make an online request) and present: passport/identity document, job offer letter from the Swiss employer, Italian residence permit (if a foreign citizen).

Once hired, the Swiss employer submits the G permit application to the Migration Services (SEM). The cross-border worker will receive the permit by mail within approximately 4-8 weeks. At the same time, they must register with the Swiss health insurance fund (if they choose LAMal) or notify the INPS of their choice to remain in the SSI.

By May 31 of the following year, the cross-border worker declares their Swiss income using the Model 730 or through a regular declaration. In the CE section, they report their Swiss employment income and the withholding tax paid. The Revenue Agency calculates the tax credit and, if applicable, refunds any excess (if the Swiss tax is higher than the Italian IRPEF).

Using online tools and next steps

The calculator on the Frontaliere Ticino platform allows you to simulate the Swiss pay slip, the net monthly income, the amounts paid into AVS/LPP, and the cantonal tax rate. It is used to verify the net income after deductions and contributions. Enter the gross Swiss salary (in CHF), the canton of work (Grigioni), marital status, and the number of children, and you will get an estimate of the pay slip and the amounts paid into the pension scheme.

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Frequently Asked Questions

What is the G permit and how do I get it?: The G permit is an annual work permit issued by SEM (Migration Services) to border workers residing in Italy and working in Switzerland. This is required by the Swiss employer as part of the recruitment procedure. It is valid for 12 months and renewable and allows daily return to Italy. The application is forwarded by the employer to SEM Bern; the border worker receives the permit within 4-8 weeks.
Where do I pay taxes: in Italy or Switzerland?: Tax at source is withheld by the Swiss employer on the paycheck. Italy does not collect additional taxes on Swiss labour income thanks to the tax credit in the EC framework of 730. If you have Italian income (rentals, capital), that remains subject to Italian personal income tax, unless it falls within the deductible of €10,000 (new frontier workers) or €7,500 (old frontier workers until 2033).
How does the AVS pension work and can I stay enrolled in the Italian INPS?: You work in Switzerland, pay Swiss AVS contributions to the canton of Graubünden and accumulate Swiss pension rights. You are not required to remain enrolled in INPS, but if you would like reunification contributions for previous Italian work periods, please contact INPS before you terminate enrollment. You can apply for your AVS pension at the age of 64-65 at the cantonal AVS office.
What happens if I choose the Swiss LAMal instead of staying in the Italian SSI?: By choosing LAMal Switzerland, you pay a monthly premium (between CHF 300 and CHF 2,500) and are covered by the Swiss healthcare system. If you stay in the Italian SSI, you do not pay additional premiums, but you pay a Swiss figurative salary for retirement. Both choices are valid; the decision depends on your health needs and mobility.
What are the tax advantages of the New Frontier Agreement 2024?: The New Agreement (effective from 1 January 2024) introduces a deductible of €10,000 for new frontier workers on Italian income from foreign capital, rent and pensions. Previous frontiersmen keep €7,500 until the end of 2033. Once the deductible has been exceeded, the excess income is taxed at IRPEF. In addition, the Swiss tax is always offset by the Italian tax credit.