What is the difference between the deductible of €7,500 and that of €10,000?

Deductible is the amount of income exempt from Italian taxation under the tax credit. Border workers who were already border workers before 17 July 2023 are entitled to €7,500 (transitional regime 2024–2033); new border workers benefit from €10,000. The higher allowance for new frontier workers compensates for the structure of the new agreement and the higher initial taxation.

How do you fill out the EC framework of declaration 730 if you have a dependent child?

In the EC framework, income from a Swiss source is declared before withholding tax. Dependent children must be reported in the registry section and produce deductions in the Italian declaration (if resident in Italy). The Swiss income certificate and a copy of the final paycheck must be attached, as well as documentation of the residence of the children.

If the Swiss withholding is higher than the Italian tax due, where does the credit go?

If the Swiss withholding exceeds the Italian tax calculated on the same tax base, the border crosser is entitled to a refund (reimbursement). The Revenue Agency credits the amount to the current account communicated in declaration 730, generally within a few months of submission.

Permit G expires during the tax year - can I still fill out the 730?

The declaration 730 must be completed for the periods in which the G Permit has been valid and the border worker has received income in Switzerland. If the permit expires in the middle of the year, the 730 will declare income and credit only until the expiration date. Consult the Revenue Agency for the processing of partial periods.

Is it mandatory to consult a tax intermediary (CAF/accountant)?

No, it is optional. The border worker can fill in the 730 independently through the Revenue Agency portal (if they have the SPID credentials). However, a tax intermediary is advised to avoid errors in the EC framework and to verify the correct calculation of the credit with the specific family situation.

Border tax credit 2026: calculation with children (cross-border guide)

Di Marco Ferrari · Published on 5 September 2026

Family reviewing financial documents with Lake Lugano view in background

How to recover excess taxes in Italy: the practical guide for border workers with children, from the calculation of the deductible to the use of the 730 model.

Context

In brief

Tax credit recoverable via 730 from January 1, 2024
Exemption €7,500 (pre-2023 commuters), €10,000 (new)
Tax withheld only in Switzerland, compensated in Italy
Family with children: increased exemption

Key facts

What: Tax credit for double taxation Switzerland-Italy
When: Effective from January 1, 2024 (New Cross-Border Workers Agreement)
Where: Cross-border workers residing in Italy, working in Switzerland
Who: INPS and Agenzia delle Entrate manage the mechanism
Exemption: €7,500 (previous cross-border workers transitional regime 2024–2033)
New exemption: €10,000 for new cross-border workers

The New Cross-Border Workers Agreement, signed on December 23, 2020 and effective from January 1, 2024, has transformed the tax system for those working in Switzerland and residing in Italy. Before this date, the regime was significantly different; today cross-border workers benefit from a tax credit in the CE section of the Italian declaration, compensating for the taxes withheld at source by the Swiss employer.

For cross-border workers who have a family with children, the implications are significant. The withholding tax is levied exclusively in Switzerland (not in both countries), and the recovery occurs through the Italian 730 model by attaching Swiss documentation. The exemption, i.e., the amount of tax-free income, depends on the status: cross-border workers who were already such before July 17, 2023, benefit from an exemption of €7,500, applicable in the transitional regime covering the years 2024–2033. New cross-border workers, on the other hand, are entitled to an exemption of €10,000.

…

Operational details

Practical scenarios for a family with children

Consider a couple of cross-border workers with a dependent child. If both work in Switzerland and live in bordering Italy, each applies their own allowance: those who were already cross-border workers before July 2023 benefit from €7,500, while newcomers benefit from €10,000 (if hired afterward). Swiss pay slips will record the withholding according to local rates (e.g., Canton Ticino or Graubünden), while Italy will recognize the credit in the CE section of the 730 declaration. The family's total income is the sum of individual incomes, net of Swiss withholding. In the Italian 730, each cross-border worker submits their own form with the certificate of taxable income from a foreign source (equivalent Swiss CUD) and calculates the credit as the difference between the Italian tax due and that already paid at source in Switzerland. If the Swiss withholding exceeds the Italian tax due for that income bracket, the credit is positive and generates a refund (rebate). If the withholding is lower, the cross-border worker will have to complete the payment in Italy. For a family with children, the situation may change: the allowance increases if the spouse also has cross-border worker status, and deductions for dependent children (if resident in Italy) are applied in the Italian declaration. It is necessary to verify whether the children have been declared in the Swiss pay slip (with corresponding Swiss deductions) or if they are only declared in Italy: this influences the final calculation.

Required documentation

To complete the 730 and claim the credit, the cross-border worker must provide:

…

Key points

Step-by-step procedure for tax credit recovery

The process begins during the working year: the cross-border worker regularly receives Swiss pay slips, which show the withholding tax. At the end of the working year, they request the income certificate from the Swiss employer or download it from the Federal Tax Administration (FTA) portal. This document is essential as it shows the gross annual income and the total tax paid at source.

Next, the cross-border worker completes the Italian 730 form (or relies on a tax intermediary). In section CE (foreign income), they enter the income declared in Switzerland before withholding tax, specify the foreign country (Switzerland), and calculate the credit using the formula: credit = (Italian tax due on foreign income) – (tax already paid in Switzerland). If the family's total income is included in the Swiss pay slips and there are no other Italian income sources, the 730 will be the only declaration tool in Italy.

Once the 730 is submitted (through a tax intermediary, online via the Revenue Agency portal, or at the CAF/patronato), the Agency processes the declaration. If the credit exceeds the tax due, the cross-border worker is entitled to a refund. If it is lower, they must pay the difference. Refund times vary, but they are generally credited within a few months of submission and subsequent formal review.

Deadlines and checklist

The main deadlines are:

By February 28 (or the next legal deadline): submission of the 730 to the Revenue Agency
Throughout the year: keep all Swiss pay slips and documentation related to dependents to supplement the Italian declaration
G permit: ensure it is valid for the entire tax year (the credit is valid only if the cross-border worker was regularly employed and resident)

…

Frequently Asked Questions

What is the difference between the deductible of €7,500 and that of €10,000?: Deductible is the amount of income exempt from Italian taxation under the tax credit. Border workers who were already border workers before 17 July 2023 are entitled to €7,500 (transitional regime 2024–2033); new border workers benefit from €10,000. The higher allowance for new frontier workers compensates for the structure of the new agreement and the higher initial taxation.
How do you fill out the EC framework of declaration 730 if you have a dependent child?: In the EC framework, income from a Swiss source is declared before withholding tax. Dependent children must be reported in the registry section and produce deductions in the Italian declaration (if resident in Italy). The Swiss income certificate and a copy of the final paycheck must be attached, as well as documentation of the residence of the children.
If the Swiss withholding is higher than the Italian tax due, where does the credit go?: If the Swiss withholding exceeds the Italian tax calculated on the same tax base, the border crosser is entitled to a refund (reimbursement). The Revenue Agency credits the amount to the current account communicated in declaration 730, generally within a few months of submission.
Permit G expires during the tax year - can I still fill out the 730?: The declaration 730 must be completed for the periods in which the G Permit has been valid and the border worker has received income in Switzerland. If the permit expires in the middle of the year, the 730 will declare income and credit only until the expiration date. Consult the Revenue Agency for the processing of partial periods.
Is it mandatory to consult a tax intermediary (CAF/accountant)?: No, it is optional. The border worker can fill in the 730 independently through the Revenue Agency portal (if they have the SPID credentials). However, a tax intermediary is advised to avoid errors in the EC framework and to verify the correct calculation of the credit with the specific family situation.