Living in Sluderno, working in Graubünden: cross-border (cross-border guide)

Context

Briefly

• Permit G is mandatory: authorizes work in the Grisons with specific fiscal regimes for border workers
• Swiss withholding tax only: tax levied by the Grisons Canton; Italian tax credit avoids double taxation
• €10,000 annual exemption: for new border workers effective from January 1, 2024

Key Facts

• What: Transfer to Sluderno with border worker status to work in the Grisons
• When: New Border Workers Agreement in force from January 1, 2024
• Where: Sluderno (Sondrio province) → Grisons municipalities (Switzerland)
• Who: Italian Revenue Agency (Italy), Grisons Canton (Switzerland), SEM federal
• Amount: €10,000 annual exemption; AVS/AI/IPG 5.3% payroll charge

A border worker living in Sluderno and working in the Grisons represents a consolidated reality in the Valtellina's economic fabric. The geographical proximity to Switzerland, combined with the job opportunities in the Grisons Canton, attracts commuters who daily coordinate their residence and workplace. However, this choice has fiscal and administrative consequences that are far from marginal.

The Permit G is the document that legitimates cross-border work. For those living in Sluderno and daily commuting to work in the Grisons, the Permit G is mandatory. Without it, the employment relationship is not legal according to Swiss regulations. The request is made to the Grisons Canton (Migration Office), with the coordination of the State Secretariat for Migration (SEM) at the federal level. Typical processing times range from 4 to 8 weeks.

…

Operational details

Advantages and Disadvantages of Transferring to Sluderno

Living in Sluderno for work in the Grisons entails different practical considerations from remaining in Switzerland. Living in Sluderno means access to generally lower living costs compared to the Grisons. Housing, food, and everyday expenses are significantly lower on the Italian side. In addition, the border resident maintains the status of Italian resident, with implications for income tax declaration, pension (INPS), and health coverage through the Italian National Health Service.

The LAMal (Swiss compulsory health insurance) remains necessary for work in Switzerland. The G permit holder has the right to opt between maintaining Italian coverage or joining the Swiss system. Swiss adult franchises range from CHF 300 to CHF 2,500 annually. For the Italian resident, the complementary pension (LPP, second pillar) is optional, while in Switzerland it would be mandatory from a certain income threshold. Mandatory Swiss contributions include AVS/AI/IPG (5.3% employee burden), AD/AC (1.1% up to CHF 148,200), LAINF (0.7–1.5%).

Daily commuting entails transportation costs and wear on the vehicle. Not all local municipalities have direct and fast connections to the Grisons' border crossings and job centers. Administrative management becomes more complex: double declaration (Italian + communications to the Swiss cantonal contributions office), coordination between the Italian Revenue Agency and Swiss authorities, need to maintain compliance with both regimes.

…

Key points

Procedure step-by-step for transferring and requesting the G Permit

The first step is to identify the employer and ensure a formal job offer in the Canton of Grisons. The employer then initiates the G Permit application process with the Canton of Grisons (Migration Office). Required documentation includes: a valid passport or ID card, a certificate of no criminal record (obtained from the Sluderno Municipality), a signed employment contract, and an employer's statement on the nature and duration of the employment relationship. Processing times vary from 4 to 8 weeks.

Once the G Permit is obtained, the border worker must register with the Sluderno Municipality's Population Registry to maintain Italian residency. If a stable transfer to Switzerland is planned, a different procedure (B Permit for residence) may be followed; however, the G Permit is typical for daily or weekly commuting.

The border worker must inform their Italian bank of their Swiss work activity. It is advisable to open a local bank account in the Canton of Grisons (with local banks) to facilitate salary receipt and tax payment to the Swiss source. Many Swiss employers require a local IBAN for salary crediting.

Income tax declaration and administrative coordination

By May 31 of the year following the first year of work, the border worker submits the Italian income tax declaration 730 (or Model Redditi for self-employed individuals), indicating in the CE section the income from Swiss work. Attach a copy of the foreign certificate (similar to the Swiss CUD provided by the employer). This documentation is essential for tax credit recognition and avoidance of double taxation.

…