What is the EC 730 tax credit?

The foreign tax credit (CE table) is Italy’s recognition of the tax already paid in Switzerland on earned income. When a cross-border worker files his/her 730 tax return, he/she reports the amount of Swiss withholding tax (AVS/AI/IPG and others) in the CE table. The Revenue Agency subtracts this credit from the Italian tax due on the same income, avoiding double taxation. If the credit exceeds the Italian tax, the cross-border worker receives a refund.

What is the difference between the €7,500 and €10,000 deductibles?

The deductible depends on the status. Those who were employed in Switzerland before 17 July 2023 (old border worker) benefit from €7,500 per year not subject to Italian taxation. Those hired from 17 July 2023 onwards (new border worker) have €10,000. This scheme applies from 1 January 2024 to 31 December 2033. The deductible directly reduces the Italian tax base.

When does the 730 presentation for border workers expire?

Form 730 must be submitted by April 30 of the year following the income period. For example, 2025 income must be declared by April 30, 2026. If you submit through a CAF or an intermediary, the deadline may vary slightly. The refund, if due, is usually credited within four months of submission.

What should I bring when introducing the 730?

You need the Lohnausweis (salary certificate) from the Swiss employer, which reports the gross income and the amount of the source tax paid. Keep pay slips, bank communications and documentation related to AVS/AI/IPG or other Swiss contributions. If you have deductible expenses in Italy (medical, mortgage interest, donations), bring the relevant documentation. A CAF or accountant can handle everything.

Do I have to pay taxes in Italy if I work in Switzerland with a G permit?

Yes, cross-border workers with a G permit pay taxes in Switzerland (withholding tax on wages) and declare their income in Italy to the Italian Revenue Agency using the 730 form. However, thanks to the tax credit in the CE section, Italy recognizes the amount already paid in Switzerland, eliminating double taxation. In many cases, cross-border workers receive a refund because their Swiss tax exceeds their Italian tax.

Cross-border workers: 730 tax return and tax credit (cross-border guide)

Di Marco Ferrari · Published on 3 September 2026

Italian tax form 730 with fiscal documents, calculator and Swiss banknotes on wooden desk

Practical guide to the 730 declaration for border workers 2026: how to obtain the tax credit, avoid double taxation, new deductibles from the New Agreement.

Context

In short

 - From 1 January 2024, the New Border Agreement will change taxation between Italy and Switzerland.
 - Withholding tax ONLY in Switzerland; Italy recognizes a tax credit in the EC form 730.
 - Exemption of €7,500 (old cross-border workers) or €10,000 (new cross-border workers), transitional regime until 2033

 ## Key Facts

 - What: Cross-border income tax return with tax credit in the CE section of Form 730
 - When: From 1 January 2024 (New Cross-Border Agreement)
 - Where: Italian Revenue Agency, for permit G
 - Who: Cross-border workers residing in Italy, employed in Switzerland
 - Exempt amount: €7,500 (already cross-border workers before 17/7/2023) or €10,000 (new)
 - IRPEF rate: 23% (up to €28,000), 35% (€28,001–€50,000), 43% (over €50,000)
 - Swiss withholding tax: 5.3% (AVS/AI/IPG) + contributions, paid in Switzerland

 ### Cross-border taxation: the New Agreement changes the rules

 The New Cross-Border Workers Agreement, signed on December 23, 2020, and effective January 1, 2024, represents a turning point in the tax management of those living in Italy and working in Switzerland. The double taxation agreement between Italy and Switzerland, signed on December 9, 1976, remains the basic legal framework, but the new agreement introduces more transparent procedures and specific benefits for cross-border workers.

 The main innovation: the withholding tax on earned income is withheld exclusively in Switzerland. Italy does not apply a second tax, but

Operational details

The 730 declaration: forms and procedures

 Form 730 is mandatory for cross-border workers who wish to obtain the tax credit and, if applicable, the refund. The declaration informs the Revenue Agency of the composition of their Swiss income and the tax already paid.

 In the 730 form, cross-border workers report: gross income earned in Switzerland; the amount of withholding tax paid (AVS/AI/IPG, mandatory Swiss contributions); in the CE section, the credit for foreign taxes; and any other deductions if resident in Italy for IRPEF purposes.

 Upon receipt of the declaration, the Revenue Agency calculates the gross Italian tax on the declared income. After deducting the exemption for cross-border workers (€7,500 or €10,000), it applies the IRPEF rates: 23% up to €28,000, 35% from €28,001 to €50,000, and 43% above €50,000. It then subtracts the foreign tax credit. If the credit exceeds the Italian tax, the cross-border worker receives a refund. If the Italian tax exceeds the credit, he or she pays the difference.

 ### Documents to be collected from the Swiss employer

 Before completing the 730 form, cross-border workers must gather documentation from Switzerland. This includes: the salary certificate (Lohnausweis / Certificat de salaire) from their employer; the official declaration of withholding tax paid (amount and period); details of mandatory contributions withheld (AVS/AI/EO, LAINF, LPP if applicable); and any other relevant amounts.

 Most

Key points

Step-by-step procedure: from data collection to refund

Step 1: Collect Swiss documentation (by February) — Request the Lohnausweis (salary certificate), the amount of withholding tax paid, and details of contributions (AVS/AI/IPG) from the Swiss employer. Keep pay slips and bank communications.

Step 2: Calculate taxable income (March) — Check if the allowance (€7,500 or €10,000) reduces the gross Swiss income. Calculate the taxable income net of the allowance: this is the income subject to Italian IRPEF.

Step 3: Prepare the 730 form (April, by the 30th) — Fill out the 730 with the income, the allowance, the amount of Swiss withholding tax. In the CE section, enter the foreign tax credit. Convert Swiss amounts to EUR at the exchange rate of the Agenzia delle Entrate (usually the exchange rate of December 31 of the previous year).

Step 4: Submit the declaration (by April 30) — Transmit the 730 online on the Agenzia Entrate website, or through a CAF, accountant, or authorized intermediary.

Step 5: Wait for the calculation (May-August) — The Agency processes the declaration and communicates the outcome: refund or amount due. The refund, if due, is usually credited within four months of submission.

Entities and references: where to get information

Agenzia delle Entrate: official website for 730 forms, instructions, and declaration outcome consultation. Public openings in local offices.

INPS: consultable to verify any mandatory contributions paid in Italy (if the cross-border worker has mixed work periods or parallel self-employment activity in Italy).

CAF/Accountants: provide support in filling out the 730 and transmitting it. Many offer specific consultations for cross-border workers.

…

Frequently Asked Questions

What is the EC 730 tax credit?: The foreign tax credit (CE table) is Italy’s recognition of the tax already paid in Switzerland on earned income. When a cross-border worker files his/her 730 tax return, he/she reports the amount of Swiss withholding tax (AVS/AI/IPG and others) in the CE table. The Revenue Agency subtracts this credit from the Italian tax due on the same income, avoiding double taxation. If the credit exceeds the Italian tax, the cross-border worker receives a refund.
What is the difference between the €7,500 and €10,000 deductibles?: The deductible depends on the status. Those who were employed in Switzerland before 17 July 2023 (old border worker) benefit from €7,500 per year not subject to Italian taxation. Those hired from 17 July 2023 onwards (new border worker) have €10,000. This scheme applies from 1 January 2024 to 31 December 2033. The deductible directly reduces the Italian tax base.
When does the 730 presentation for border workers expire?: Form 730 must be submitted by April 30 of the year following the income period. For example, 2025 income must be declared by April 30, 2026. If you submit through a CAF or an intermediary, the deadline may vary slightly. The refund, if due, is usually credited within four months of submission.
What should I bring when introducing the 730?: You need the Lohnausweis (salary certificate) from the Swiss employer, which reports the gross income and the amount of the source tax paid. Keep pay slips, bank communications and documentation related to AVS/AI/IPG or other Swiss contributions. If you have deductible expenses in Italy (medical, mortgage interest, donations), bring the relevant documentation. A CAF or accountant can handle everything.
Do I have to pay taxes in Italy if I work in Switzerland with a G permit?: Yes, cross-border workers with a G permit pay taxes in Switzerland (withholding tax on wages) and declare their income in Italy to the Italian Revenue Agency using the 730 form. However, thanks to the tax credit in the CE section, Italy recognizes the amount already paid in Switzerland, eliminating double taxation. In many cases, cross-border workers receive a refund because their Swiss tax exceeds their Italian tax.