The impact of tax agreements As a frontier worker in Graubünden? Earn more in Milan

The impact of tax agreements on cross-border workers has become increasingly evident in the canton of Grisons, where financial incentives once made working across the Swiss-Italian border highly attractive. However, recent developments suggest this advantage is diminishing, particularly as new tax arrangements between Switzerland and Italy have taken effect. According to reports, these changes have begun to influence employment dynamics in the region, especially affecting sectors reliant on international labor. Dario Castagnoli, a member of the executive board of Repower, a major energy company based in Poschavio, noted that for the first time in four years, a candidate from the Valtellina region declined an offer due to lower pay compared to similar positions in Milan. This marks a shift in the landscape of cross-border employment, as the tax implications have significantly reduced the appeal of working in Grisons for Italian residents. The new tax agreement, which came into force nearly three years ago, appears to be having tangible effects on the local workforce. From 2002 until 2024, there was a steady increase in the number of cross-border workers in Grisons. However, since then, growth has slowed considerably, with only about 200 additional permits issued over two years. As of the first quarter of 2026, approximately 10,200 cross-border workers are employed in the canton, with around 90 percent residing in Italy. While some sectors remain relatively unaffected, others are experiencing notable changes. In the healthcare sector, for example, the wage difference between the two countries can still make working in Grisons more appealing. Maurizio Michael, president of the Bergell Health Center, explained that proximity to the border reduces travel burdens, making the situation less problematic. However, he acknowledged that increased travel times could lead individuals to consider alternative opportunities elsewhere. Conversely, the construction industry continues to see strong interest in Grisons despite the tax agreement. Maurizio Pirola, president of the Association of Bündner Builders, highlighted that wages in this sector tend to be higher than in other areas. Nevertheless, challenges persist, including difficulties in attracting new workers. He warned that future shortages might emerge when current cross-border workers retire without sufficient replacements. In the tourism sector, the situation presents its own set of complexities. Claudio Dietrich, owner of the Waldhaus Hotel in Sils Maria, observed that recruitment became challenging after the pandemic but has since stabilized. Although hiring remains difficult, the number of applications has increased slightly. One concern for employers like Dietrich is the uncertainty surrounding the tax obligations of new cross-border workers. This ambiguity makes it hard to provide clear expectations regarding employees' take-home pay. Marcus Caduff, director of the Department of Economics, emphasized that the tourism industry faces risks related to potential labor shortages from abroad. He pointed out that wage differences are narrowing, raising questions about whether workers would be willing to commute for longer periods if the financial incentive diminishes further. To address these issues, some industry leaders advocate for increasing wages to maintain competitiveness. Dario Castagnoli of Repower suggested that if certain job profiles lack competitive salaries, the logical response is to raise them accordingly. This approach aims to align compensation with market demands while ensuring continued access to necessary labor. As discussions continue among stakeholders, the evolving dynamics of cross-border work highlight the need for ongoing evaluation of economic policies impacting both regions. Employers, policymakers, and workers alike must navigate these changes to ensure sustainable employment practices that benefit all parties involved.