If I am a new frontier worker with €10,000 deductible and earn €45,000 gross, how much tax do I pay?

The first €10,000 is completely tax-free in Switzerland and Italy. On the remaining €35,000, the Swiss source tax is normally applied (varies by canton; in Graubünden, approximately 15–22% of taxable income). In Italy, you will declare the total income of €45,000 in the 730 EC framework and indicate the Swiss tax already paid. If the Italian rate (35% on this band) is higher, you will receive a refund for the difference.

Does the Italian INPS receive anything for my years of work in Grisons?

No. Those who work in Switzerland pay ALL social security contributions (AVS/AI/IPG, LPP) exclusively to Switzerland. INPS does not receive payments for work carried out in Swiss territory. Your years of career build an independent pension at the Swiss AVS; when you reach retirement age (64 years old women, 65 years old men), you will receive a pension directly from Switzerland, calculated on your contributions paid.

Do I necessarily have to sign up for LAMal or can I stay in the Italian SSN?

You have the right of option: you can stay in the Italian NHS by paying a flat-rate contribution to INPS, or register with a Swiss health insurance fund (LAMal). Many frontier workers choose LAMal for wider coverage (including partial dentistry), although the monthly premium may seem high. Evaluate the cost-benefit according to your health needs; you can change your choice in the following years.

If my income is below €7,500 (old border) or €10,000 (new), do I have to file the 730?

Yes, 730 remains mandatory. Even if the income falls within the deductible and you do not pay additional tax, you must declare the income in Italy for tax compliance. You will use the 730 mark CE by attaching the Swiss salary certificate. In most cases, you will not have to pay additional Italian tax, but the full declaration is required by law.

Is the tax refund (refund) automatic or do I have to ask for it?

Repayment is not automatic in the sense that it is not paid without action, but is a right recognised by the 1976 Convention and guaranteed by the new 2024 agreement. When you file the 730 EC framework with the declared Swiss tax, the Revenue Agency automatically calculates the credit and pays it back in the total refund of 730. If your 730 refund is positive, you will receive the credit on your current account; if it is negative (rarely for border workers), you may have to pay a small supplement.

Living in Silandro and working in Graubünden: a tax guide (cross-border guide)

Di Marco Ferrari · Published on 22 August 2026

Alpine landscape of Swiss Graubünden region with mountain valleys and conifer forests

New Frontier Agreement from 1 January 2024: exemption €7,500 for old frontier workers, €10,000 for new ones. Tax at source in Switzerland, tax credit in Italy. AVS and LPP paid only in Switzerland.

Context

In a nutshell

New Frontier Agreement in force from 1 January 2024: simplifies the tax regime
Tax at source applied ONLY in Switzerland; tax credit via 730 in Italy
Frontier workers pay AVS/LPP exclusively in Switzerland, not in Italy

Key facts

What: Border tax regime (Permit G) Italy-Grisons
When: New Agreement in force from 1 January 2024 (signed 23 December 2020)
Where: Residence in Italy (South Tyrol), work in Graubünden (Switzerland)
Who: Employees with Border G Permit
Exemption: €7,500 per year (old frontier workers before 17 July 2023), €10,000 (new)
Income tax rate: 23% up to €28,000, 35% €28,001- €50,000, 43% over €50,000
SVZ contributions: AVS/AI/IPG 5.3% employee, LPP 7–18% by age group

On 1 January 2024, the New Frontier Agreement introduced a significant change in the taxation system for those living in Italy and working in Switzerland. Signed on 23 December 2020 and ratified in Italy by Law 83 of 13 June 2023, this agreement creates a simplified regime based on an annual deductible. For those who reside in Silandro or in the neighbouring areas of South Tyrol and work in Swiss Graubünden, the change is concrete: the amounts exempt from taxation are clearly defined, and the declaratory procedure is reduced to the essential steps.

Two categories of border crossers benefit from different treatments. Who held a valid G-Permit prior to July 17, 2023

Operational details

Social security contributions: AVS, LPP and the Swiss system

A frequent confusion concerns the payment of pension contributions. Those who work in Switzerland pay all contributions exclusively to Swiss coffers, not in Italy. A border worker who resides in Silandro and works in Graubünden DOES NOT pay Italian INPS contributions for the work carried out in Swiss territory. The structure of the deposit is rigid:

AVS/AI/IPG (old age/disability/lost earnings insurance): 5.3% to be paid by the employee. The employer pays an equivalent fee. This finances the compulsory basic pension.
LAINF (accident insurance): 0.7-1.5% paid by the employer.
PPI (second pillar pension fund): 7–18% depending on the age group of the worker, paid jointly by employee and employer (increases progressively with age).
AD/AC (unemployment and earning capacity insurance): 1.1% of income up to CHF 148,200 per annum.

These payments build two pillars: the basic AVS income (first pillar) and the pension capital in the LPP fund (second pillar). Upon reaching retirement age (64 for women, 65 for men), the border worker receives directly from Switzerland an AVS pension calculated on the contributions paid, without the Italian INPS intervening. The second pillar (LPP) provides additional capital, a structural advantage over the Italian system

Useful planning tools

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

Key points

Concrete steps to settle in Silandro and work in the Grisons

Step 1: G Permit and stable domicile in Italy

Before anything else, make sure you have a legal residence registered in Italy (in the municipality of Silandro or neighboring areas of South Tyrol). The G Permit (frontier residence permit) is requested by the Swiss employer through the SEM (State Secretariat for Migration). You need: employment contract, Italian domicile certificate, valid identity document, written statement that the domicile will remain in Italy. The SEM processes the application and, if positive, issues the permit. The G Permit remains valid as long as you maintain employment; a consecutive three-month work interruption will terminate it.

Step 2: Registration with the Federal Office of Social Insurance (AFC) and AVS

Once you have obtained the G Permit, the Swiss employer will automatically handle the registration with the Grisons cantonal office of social insurance (AFC) and the competent AVS office. You do not need to make formal applications: the employer will communicate your data to the authorities. You will be assigned an AVS insurance number (a number that will follow you even in the event of changes in Swiss residence). Keep this communication: you will need it for any future communication with AVS or LPP insurance offices.

Step 3: Health insurance registration (LAMal or SSN)

…

Frequently Asked Questions

If I am a new frontier worker with €10,000 deductible and earn €45,000 gross, how much tax do I pay?: The first €10,000 is completely tax-free in Switzerland and Italy. On the remaining €35,000, the Swiss source tax is normally applied (varies by canton; in Graubünden, approximately 15–22% of taxable income). In Italy, you will declare the total income of €45,000 in the 730 EC framework and indicate the Swiss tax already paid. If the Italian rate (35% on this band) is higher, you will receive a refund for the difference.
Does the Italian INPS receive anything for my years of work in Grisons?: No. Those who work in Switzerland pay ALL social security contributions (AVS/AI/IPG, LPP) exclusively to Switzerland. INPS does not receive payments for work carried out in Swiss territory. Your years of career build an independent pension at the Swiss AVS; when you reach retirement age (64 years old women, 65 years old men), you will receive a pension directly from Switzerland, calculated on your contributions paid.
Do I necessarily have to sign up for LAMal or can I stay in the Italian SSN?: You have the right of option: you can stay in the Italian NHS by paying a flat-rate contribution to INPS, or register with a Swiss health insurance fund (LAMal). Many frontier workers choose LAMal for wider coverage (including partial dentistry), although the monthly premium may seem high. Evaluate the cost-benefit according to your health needs; you can change your choice in the following years.
If my income is below €7,500 (old border) or €10,000 (new), do I have to file the 730?: Yes, 730 remains mandatory. Even if the income falls within the deductible and you do not pay additional tax, you must declare the income in Italy for tax compliance. You will use the 730 mark CE by attaching the Swiss salary certificate. In most cases, you will not have to pay additional Italian tax, but the full declaration is required by law.
Is the tax refund (refund) automatic or do I have to ask for it?: Repayment is not automatic in the sense that it is not paid without action, but is a right recognised by the 1976 Convention and guaranteed by the new 2024 agreement. When you file the 730 EC framework with the declared Swiss tax, the Revenue Agency automatically calculates the credit and pays it back in the total refund of 730. If your 730 refund is positive, you will receive the credit on your current account; if it is negative (rarely for border workers), you may have to pay a small supplemen