Border Municipalities: The Tax Blow for Thousands of Cross-Border Workers (cross-border guide)

Di Valerie Linc · Published on

The new definition of 'Border Municipality' has revealed tax inequalities for thousands of cross-border workers, with losses of up to €150,000 for those who have been working in Ticino for years.

Contesto

TL;DR - Cross-border workers face tax issues due to unclear 'Border Municipality' definition. - Misinto worker lost €150,000 in tax benefits due to proximity to Swiss border. - New tax agreement creates disparities between 'old' and 'new' cross-border workers. - 72 new Italian municipalities included in official border list, but workers still face tax splits. ## Key facts - Issue: Unclear definition of 'Border Municipality' causing tax problems for cross-border workers. - Example: Worker from Misinto lost €150,000 in tax benefits due to proximity to Swiss border. - Discovery: Misinto is less than 20 kilometers from Switzerland, crucial for tax benefits. - Mayor's Action: Misinto's mayor, Matteo Piuri, fought for fairness in 2022. - New Agreement: Bilateral tax agreement on cross-border workers came into force on July 17, 2023. - Threshold: 20-kilometer threshold from border defines 'Border Municipality'. - New Municipalities: 72 new Italian localities included in official border list. - Disparity: Workers from new municipalities classified as 'new' cross-border workers, facing tax splits. The issue surrounding the definition of 'Border Municipality' has become a veritable minefield for thousands of cross-border workers, with tax repercussions amounting to tens of thousands of euros. A striking example, reported by tvsvizzera.it on February 28, 2026, is that of a worker from Misinto, a town in the province of Monza, who has been crossing the Ponte Faloppia border daily for two decades to work in a factory in Ticino. Despite her long career across the border, she has never been granted the status of a 'historic' cross-border worker, forcing her to pay taxes entirely in Italy. Her husband, suspicious about their town's proximity to the Swiss border, embarked on a persona...

Dettagli operativi

At the root of this complex scenario lies a definition of 'Border Municipality' that remained shrouded in ambiguity for nearly fifty years. The previous 1974 agreement between Switzerland and Italy did not provide precise details. Each Canton – Ticino, Valais, and Grisons – developed its own unilateral lists of municipalities, without these being formally mentioned in the bilateral agreement. Giordano Macchi, director of the Tax Division of the Department of Finance and Economy (DFE) in Ticino, tried unsuccessfully to trace the origin of these lists, joking that 'In 1974, I had just started walking.' It seems the origin can be traced back to a list tied to grazing rights and livestock crossings, contained in a 1953 Convention that also mentioned 'cross-border workers.' Andrea Puglia, a union representative from OCST, confirms that these 'homemade lists' created by the Cantons, while not formally part of the 1974 agreement, were tacitly accepted by the Italian authorities, becoming de facto standard practice. The 20-kilometer threshold, now so decisive, was not explicitly mentioned in the 1953 Convention, where it generically referred to 'border zones' extending 'approximately ten kilometers, except in exceptional cases.' It was only in a 2017 resolution by the Italian Revenue Agency that the 20-kilometer threshold was mentioned for the first time. However, as Puglia explains, 'the text specifies that it is a simplified expression, reflecting the 'common understanding' in use for nearly fifty years.' The real turning point came with the new agreement on the taxation of cross-border workers, which finally provided a clear definition: a Border Municipality is one located within 20 kilometers of the border. This led to the inclusion of 72 new Italian localities in the offi...

Punti chiave

The tax 'tangle,' as the source describes it, is far from resolved. For unions, the automatic classification of workers from these 72 new municipalities as 'new cross-border workers,' regardless of their years of service in Switzerland, represents a blatant injustice. Andrea Puglia of OCST has strongly argued for the need to apply retroactivity in these cases, a request that the Cantons have so far rejected, exacerbating a sense of frustration and uncertainty for thousands of people who have contributed to Ticino's economy for years. The confusion generated by the application of the new agreement is palpable, and the Italian authorities, initially silent in response to Mayor Piuri's requests, have had to issue an interpretation of the rule to clarify matters. This situation highlights the critical importance for every cross-border worker to fully understand their tax status and the classification of their municipality of residence. Simply being 'close' to the border is not enough; the official distance and formal recognition make all the difference between paying taxes solely in Switzerland or splitting them between the two countries, significantly impacting one's net salary. To avoid unpleasant surprises and navigate this ever-evolving regulatory landscape, it is essential to access precise and up-to-date information. Checking whether your municipality is included in the official lists and understanding the implications of your status as an 'old' or 'new' cross-border worker is the first step toward informed tax planning. 💡 Practical Tip: Many cross-border workers underestimate how these details can affect their paychecks. Make sure to check the updated list of border municipalities and, if in doubt, consult a tax advisor specializing in cross-border law. For a com...

Punti chiave

[{"q":"What is the distance threshold to be considered a historical cross-border commuter?","a":"According to the new bilateral agreement, the threshold is 20 kilometers from the Swiss border."},{"q":"How does the new bilateral agreement on the taxation of cross-border commuters (July 2023) affect 'new' vs 'old' cross-border commuters?","a":"The new agreement requires 'new' cross-border commuters (those who start working in Switzerland after 2018) to pay taxes in both Italy and Switzerland, while 'old' cross-border commuters (those who worked in Switzerland since 2018) will only pay taxes in Switzerland until they retire."},{"q":"What happens if my municipality of residence is added to the list of border municipalities after the new agreement?","a":"Even if your municipality is added to the official list of municipalities within 20 km of the border, you may be classified as a 'new cross-border commuter'. This means that, unlike the 'old cross-border commuters', you may also have to pay taxes in Italy, as well as in Switzerland, with an impact on your net paycheck."},{"q":"How can I check whether my municipality is considered a border for cross-border commuters?","a":"The current definition of a 'border municipality' for cross-border commuters is a municipality located within 20 kilometres of the Swiss border. You can check the distance between your municipality of residence and the Swiss border using online measurement tools to get an accurate indication and understand your potential status."},{"q":"What are the tax implications for 'new cross-border commuters' under the 2023 agreement?","a":"'New cross-border commuters', i.e. those who started working in Switzerland after 2018 and reside in municipalities that fall under the new definition, are subject to double taxati...

Frequently Asked Questions
What is the distance threshold to be considered a historical cross-border commuter?
According to the new bilateral agreement, the threshold is 20 kilometers from the Swiss border.
How does the new bilateral agreement on the taxation of cross-border commuters (July 2023) affect 'new' vs 'old' cross-border commuters?
The new agreement requires 'new' cross-border commuters (those who start working in Switzerland after 2018) to pay taxes in both Italy and Switzerland, while 'old' cross-border commuters (those who worked in Switzerland since 2018) will only pay taxes in Switzerland until they retire.
What happens if my municipality of residence is added to the list of border municipalities after the new agreement?
Even if your municipality is added to the official list of municipalities within 20 km of the border, you may be classified as a 'new cross-border commuter'. This means that, unlike the 'old cross-border commuters', you may also have to pay taxes in Italy, as well as in Switzerland, with an impact on your net paycheck.
How can I check whether my municipality is considered a border for cross-border commuters?
The current definition of a 'border municipality' for cross-border commuters is a municipality located within 20 kilometres of the Swiss border. You can check the distance between your municipality of residence and the Swiss border using online measurement tools to get an accurate indication and understand your potential status.
What are the tax implications for 'new cross-border commuters' under the 2023 agreement?
'New cross-border commuters', i.e. those who started working in Switzerland after 2018 and reside in municipalities that fall under the new definition, are subject to double taxation. They have to pay taxes in both Switzerland and Italy, unlike the 'old cross-border commuters' who only keep taxation in Switzerland until retirement.

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