Living in Valtellina and working in Graubünden as a border worker (cross-border guide)

Context

Living in Valtellina and working in Graubünden as a border worker: a job and financial opportunity

The New Frontier Agreement, signed on 23 December 2020, will enter into force on 1 January 2024, making changes to taxes and regulations for frontier workers. The Italy-Switzerland Double Taxation Convention, signed on 9 December 1976, sets the rules for taxes in both countries.

Border workers are entitled to opt for health insurance in Switzerland, but must pay an excess of CHF 300-2500. Italy avoids double taxation with the tax credit (EC framework of 730). Switzerland is not an EU/EEA member. Law 83 of 13 June 2023 ratifies the New Frontier Agreement.

Tax at source: Switzerland does not apply tax at source to frontier workers, while Italy retains a withholding tax only in Switzerland for frontier workers.

Federal/Cantonal Rates: The rates are set by federal/cantonal laws and administered by AFC/ESTV at the federal level and by cantonal tax administrations.

Italian taxes: The income tax net of deductions and miscellaneous tax deductions is 23% up to €28,000, 35% from €28,001 to €50,000 and 43% over €50,000.

Living and working in Valtellina: Border workers can work and live in Valtellina, where demographic and climatic conditions offer a quality of life of the highest level, with a population that increasingly relies on

Operational details

In Switzerland, the New Frontier Agreement offers several changes to taxes and regulations for frontier workers, including the opportunity for them to choose to insure themselves against illness at home, paying a deductible of between CHF 300 and 2500.

Switzerland is not an EU/EEA member, and for border workers, Italy avoids double taxation with the tax credit (EC framework of 730).

Law 83 of 13 June 2023 ratifies the New Frontier Agreement.

For border crossers, source tax is charged only in Switzerland, while federal/cantonal rates are set by federal/cantonal laws and administered by AFC/ESTV at the federal level and by cantonal tax administrations.

In Italy, the IRPEF taxes are 23% up to €28'000, 35% from €28'001 to €50,000, and 43% over €50,000.

For frontier workers, health insurance in Switzerland is mandatory and the deductible varies between CHF 300 and CHF 2500.

Choosing to insure against illness in Switzerland can help border workers reduce medical expenses and reduce the risk of not being compensated in case of hospitalization or illness.

Border workers can also benefit from greater flexibility in working and living on the frontier, as they can choose to work in different Swiss regions and move easily from one region to another.

As far as frontier life is concerned, frontier workers can take advantage of a better quality of the roads in the territory,

Useful tools for your case

To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.

Key points

Living in Valtellina and working in Graubünden as a border worker: an essential guide for the Italian citizen

In Italy, the source tax is usually only paid in Italy, but for workers working in Graubünden as frontier workers (GdF), the tax is paid in Switzerland. To work in the GDF, the front is required to pay the tax at source only in Switzerland.

Federal/cantonal rates are set by federal/cantonal laws and administered by AFC/ESTV at the federal level and by cantonal tax administrations. For example, the IRPEF (European Social Security Income Tax) in Italy is 23% up to €28,000, 35% from €28,001 to €50,000 and 43% over €50,000.

To work in GDFs, the front can opt for health insurance in Switzerland. The deductible for health insurance is CHF 300-2,500. For more information, see the salary calculator or the article on the cost of living in Switzerland.

Practical guide to living in Valtellina and working in Graubünden as a border worker

1. Requirements: A swap and tax return are required in Switzerland. Please check with the relevant Swiss consulate for further information.

2. Exchange: The exchange can be carried out at an authorized bank or exchange agency. Please note that the exchange must be made in euros and not in lira.

3. Tax Return: The tax return must be