When did the new Frontier Agreement come into force?

The new Agreement between Italy and Switzerland was signed on 23 December 2020 and is in force from 1 January 2024. The Italian ratification took place with Law 83 of 13 June 2023. The 2026 tax return (2025 income tax) is the second year of full operation, not the first.

What is the difference between old and new border crossing?

Old frontier workers, already exempt before 17 July 2023, have an exemption of €7,500 and a transitional regime 2024–2033. New frontier workers, hired or who became such after that date, benefit from a deductible of €10,000. The distinction changes the Italian tax base and the amount of the tax credit.

Does the tax credit qualify for a refund?

No. The tax credit in the EC framework absorbs the Italian personal income tax up to the amount of the tax already paid in Switzerland. If the Swiss tax exceeds the Italian tax, the taxpayer does not receive an additional refund. If the Italian tax is higher, pay only the difference.

What documents are needed to fill in the CE framework?

The Swiss salary certificate (Lohnausweis), the monthly pay slips and the attestation of social security contributions (AVS/AI/IPG, AD/AC, LPP, LAINF) are required. Without the Lohnausweis it is not possible to correctly indicate foreign tax and gross income.

Is the Double Taxation Convention still valid?

Yes, the Italian-Swiss Double Taxation Convention was signed on 9 December 1976 and remains the reference for tax relations between the two countries. The new 2020 Agreement joins it for the specific regulation of frontier workers.

Border tax credit 2026: common errors (cross-border guide)

Di Marco Ferrari · Published on 30 August 2026

Swiss payslip and Italian 730 form on a desk, Mendrisio background

Framework EC of 730, new Agreement in force since 2024 and transitional regime: the most frequent errors of border workers.

Context

In a nutshell

New Frontier Agreement signed on 23/12/2020, in force from 1 January 2024
Old frontier workers: exemption €7,500, transitional regime 2024–2033
New frontier workers: deductible €10,000
Withholding tax withheld only in Switzerland, credit in EC framework of 730

Key facts

What: Tax credit to avoid double taxation on employee income in Switzerland
When: Income tax return 2026 (income 2025), second year of full operation of the new regime
Where: Canton of Ticino and the rest of Switzerland, declaration in Italy
Who: Frontier workers with G permit, INPS, Revenue Agency
Amount: Exemption €7,500 (old border guards), deductible €10,000 (new border guards)
Regulatory reference: Law 83 of 13/6/2023 (Italian ratification), Convention of 9 December 1976
Declaratory framework: EC of model 730

The tax credit for border workers working in the Canton of Ticino — or more generally in Switzerland — is the mechanism by which Italy avoids double taxation on income produced overseas. From 1 January 2024, the new Agreement between Rome and Bern is in force, signed on 23 December 2020 and ratified by Italy with Law 83 of 13 June 2023. The 2026 tax return, relating to 2025 income, represents the second year of full operation of the updated regime.

How credit works in the EC framework

For frontier workers, the tax at source is withheld

Operational details

Practical analysis: where errors tend to concentrate

The experience of the last two filing campaigns — 2024 (for 2023 income, the launch year) and 2025 (for 2024 income, the first full year) — has brought to light a series of recurring critical issues. These are not data from a single study, but consolidated patterns that the Italian Revenue Agency and cross-border CAFs report in their operational communications.

Mistake 1 — Confusing the tax credit with a refund

Many taxpayers believe that Section CE generates a monetary credit from the Italian tax authority. In reality, the mechanism is different: the tax credit absorbs Italian IRPEF up to the amount of tax already paid in Switzerland. If the foreign tax exceeds the Italian one, the taxpayer does not receive anything extra; if the Italian tax is higher, they only pay the difference. Confusing this mechanism leads to entering incorrect amounts in the 730 form or to requesting unfounded refunds.

Mistake 2 — Forgetting the Swiss payslip

Swiss source deductions are not data that the Italian Revenue Agency receives automatically. They must be reported by the taxpayer based on the salary certificate issued by the Swiss employer. Omitting this entry — or entering an amount different from what was actually withheld — produces a tax credit inconsistent with the declared income, with possible anomaly flags.

Mistake 3 — Failing to update the cross-border status

Those who in 2025 switched from old to new cross-border status, or vice versa, must reconstruct the taxable base taking into account the different exemptions (€7,500 versus €10,000). The same applies to those who changed employer or canton: the source-tax rate varies, and Section CE must be populated with the correct data.

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Key points

What to do concretely: the step-by-step procedure

Step 1 — Gather the documentation

Before opening the 730 form, the cross-border worker must obtain: Swiss salary certificate (Lohnausweis), monthly pay slips, statement of AHV/AI/IPG contributions (5.3% borne by the employee) and AD/AC (1.1% with a cap of CHF 148,200), any LPP contributions (7–18% by age bracket, from age 25) and LAINF (0.7–1.5%). Without these documents, section CE cannot be filled out correctly.

Step 2 — Verify the cross-border worker category

Old or new cross-border worker — the distinction makes a difference: €7,500 exemption versus €10,000 allowance. The data must be cross-checked with the start date of the employment relationship in Switzerland.

Step 3 — Fill out section CE

In row CE3, the gross Swiss income must be indicated; in the following row, the foreign tax withheld. The software will calculate the credit due. ⚠️ A frequent mistake is to enter the net Swiss income instead of the gross: the credit would be understated.

Step 4 — Submit the return and keep the documents

The ordinary deadline for the 730 is 30 September (pre-filled form) or end of November (with CAF). It is essential to keep the Lohnausweis for at least five years, in case of an audit.

Operational checklist

Lohnausweis 2025 received from the employer
Pay slips reconciled with the annual gross
AHV, LPP, LAINF contributions verified
Old/new cross-border worker status confirmed
Section CE completed with gross income (not net)
Foreign tax corresponding to the Lohnausweis

When a preventive simulation is worthwhile

For those who changed regime in 2025 or have multiple Swiss employers, it is worth running a simulation with the net salary calculator before submitting. This helps detect category and rate errors.

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Frequently Asked Questions

When did the new Frontier Agreement come into force?: The new Agreement between Italy and Switzerland was signed on 23 December 2020 and is in force from 1 January 2024. The Italian ratification took place with Law 83 of 13 June 2023. The 2026 tax return (2025 income tax) is the second year of full operation, not the first.
What is the difference between old and new border crossing?: Old frontier workers, already exempt before 17 July 2023, have an exemption of €7,500 and a transitional regime 2024–2033. New frontier workers, hired or who became such after that date, benefit from a deductible of €10,000. The distinction changes the Italian tax base and the amount of the tax credit.
Does the tax credit qualify for a refund?: No. The tax credit in the EC framework absorbs the Italian personal income tax up to the amount of the tax already paid in Switzerland. If the Swiss tax exceeds the Italian tax, the taxpayer does not receive an additional refund. If the Italian tax is higher, pay only the difference.
What documents are needed to fill in the CE framework?: The Swiss salary certificate (Lohnausweis), the monthly pay slips and the attestation of social security contributions (AVS/AI/IPG, AD/AC, LPP, LAINF) are required. Without the Lohnausweis it is not possible to correctly indicate foreign tax and gross income.
Is the Double Taxation Convention still valid?: Yes, the Italian-Swiss Double Taxation Convention was signed on 9 December 1976 and remains the reference for tax relations between the two countries. The new 2020 Agreement joins it for the specific regulation of frontier workers.