The G permit for cross-border commuters: how it works

Every day, hundreds of thousands of people resident in neighbouring countries cross the border to work in Switzerland. The status that allows this is the G permit, the authorisation for cross-border commuters. It is a permit with its own logic, different from that of the B or C permit, because it does not concern those who live in Switzerland but those who work there while keeping their residence abroad. Here is how it works.

Who the cross-border commuter is and what the G permit allows

The G permit is intended for those who reside in a neighbouring EU/EFTA state (for Italy, typically the border zones and beyond, depending on the agreements) and work in Switzerland as an employee or self-employed person, regularly returning to their residence abroad.

The distinctive feature is that the centre of life remains abroad: the cross-border commuter does not transfer their residence to Switzerland. The permit authorises them to carry out a gainful activity in the country, without conferring a right of residence.

The weekly-return requirement

The cornerstone rule is the periodic return to the residence abroad. For EU/EFTA nationals, the cross-border commuter must as a rule return to their residence at least once a week. Daily return is therefore not required, but the tie to the foreign residence must be real and maintained.

If this tie falls away — for example because the person in fact lives in Switzerland during the week and returns only sporadically — the situation may call for a different permit (B) and a different tax arrangement.

Duration and renewal

The duration of the G permit is tied to the employment relationship:

• with a contract of indefinite duration or longer than one year, the permit is generally valid for five years;
• with a fixed-term contract of less than one year, the duration follows that of the contract.

Renewal presupposes the continuation of the employment relationship and of the return requirement. A change of residence or the loss of the tie to the neighbouring state affects its validity.

Changing job, profession and canton

Thanks to the free-movement agreements, the EU/EFTA cross-border commuter enjoys a fair degree of occupational mobility:

• they can change employer and profession;
• they can in principle work throughout the territory, not only in the canton of issue, provided the notification procedures are observed.

The notification obligations to the competent authorities remain essential in the event of a change in the employment situation.

Taxation of the cross-border commuter

The tax aspect is the one that raises the most questions, because it involves both Switzerland and the country of residence. In general terms:

• the employment income of the cross-border commuter is as a rule subject to withholding tax (imposta alla fonte) in Switzerland, withheld by the employer;
• the allocation of taxing rights between Switzerland and the state of residence depends on the double-taxation treaties and the specific agreements on cross-border commuters, which have been revised in recent years;
• the new agreement on cross-border commuters between Italy and Switzerland, in force since 2024, distinguishes between “old” and “new” commuters and changes the taxation criteria: it is therefore essential to check your own position case by case, because the rules differ according to the start date of the relationship and the zone.

Given the complexity and the recent changes, we avoid percentages here that depend on the individual situation: the rule is to have your specific case analysed before signing or changing a contract.

Social insurance and healthcare

The cross-border commuter is as a rule subject to the Swiss social insurance system for the activity carried out in Switzerland (AVS/AI — old-age and disability insurance, ALV — unemployment insurance, LPP — occupational pension, LAINF — accident insurance, as applicable). For health insurance there is a special regime with a right of option between coverage in Switzerland and in the country of residence, within set deadlines. Here too the choice has significant practical and financial consequences and should be made deliberately.

Mistakes to avoid

• Effectively moving to Switzerland without changing permit: this exposes you to challenges and to an incorrect tax classification.
• Underestimating the 2024 changes to the Italy–Switzerland agreement: the same role can be taxed differently depending on status.
• Ignoring the healthcare option: an ill-considered choice can prove costly for years.

How we work at SIH ONE

We assist companies and workers in correctly managing cross-border commuter status: checking the G permit requirements, handling notification formalities, setting up withholding tax, coordinating with social insurance and analysing the position in light of the most recent agreements.

Do you employ cross-border commuters or work across the border and want to be compliant on permits and taxation? Explore our services relating to permits and set everything up correctly from the very start.