Cross-border workers: Distance from the border redefines taxes (cross-border guide)

Context

TL;DR

• Misinto workers lost tax benefits due to unclear border rules.
• Misinto is 17,088 meters from Switzerland, qualifying as a border municipality.
• New tax agreement defines border municipalities within 20 km of the border.

Key facts

• Distance from border: 17,088 meters
• Tax loss: €150,000
• Municipality refund loss: €20,000
• New tax agreement date: July 17, 2023
• Border municipality definition: Within 20 kilometers of the border
• New border municipalities: 72 Italian localities
• Old cross-border workers: Pay taxes only in Switzerland until retirement
• New cross-border workers: Pay taxes in both Italy and Switzerland

The issue of cross-border municipalities has always been a sensitive topic for thousands of workers who cross the border daily to reach Canton Ticino. A recent case, reported by tvsvizzera.it on February 28, 2026, highlights how just a few kilometers can make the difference between a favorable tax regime and significant financial loss. A striking example is the case of a worker from Misinto, in the province of Monza, who worked in a Ticino factory for twenty years without being recognized as a cross-border worker, paying taxes in Italy. Only after her husband's insistence, who verified the exact distance from the border, did it emerge that Misinto is less than 20 kilometers from Switzerland, precisely 17,088 meters away.

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Operational details

The root of this longstanding confusion lies in a definition of 'border municipality' that has never been unequivocal. The previous 1974 bilateral agreement between Switzerland and Italy did not go into detail, leaving the Cantons of Ticino, Valais, and Grisons free to use their own lists. As Giordano Macchi, director of the Tax Division of the Department of Finance and Economy (DFE) of Canton Ticino, explained, tracing the origin of these lists is a challenging task. It seems that at the time, they were based on a list related to grazing rights and cross-border livestock movement, derived from the 1953 Convention, which already mentioned 'cross-border workers' and included a list of 'border municipalities.' Thus, in the 1970s, these cantonal lists, although not mentioned in the 1974 agreement, were tacitly accepted by the Italian authorities, becoming de facto practice and almost law. Andrea Puglia, a union representative of OCST, confirms that 'each Canton prepared its own list to fill a gap. These unilateral lists, although not mentioned in the 1974 agreement, were shared with the Italian authorities without any objections from their side.'

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Key points

The distinction between 'old' and 'new' cross-border workers, with the entry into force of the new tax agreement on July 17, 2023, has created two categories of workers with profoundly different tax treatments. 'Old cross-border workers' will continue to pay taxes exclusively in Switzerland until retirement, while 'new cross-border workers' will have part of their income taxed in Italy as well. For unions, this situation creates an evident injustice, especially for those, like the worker from Misinto, who have worked in Ticino for decades believing they were under a more favorable tax regime. The OCST and other organizations have proposed applying retroactivity for these cases, but the Cantons have so far refused, arguing that the original lists were not official. This decision has direct consequences on the purchasing power of thousands of families, influencing housing and work choices along the Italy-Switzerland border.

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