Frontier workers: it matters where you work, not the company headquarters
The Revenue Agency clarifies: the tax regime of frontier workers depends on the place of the physical service, not on the employer's address.
Context
In a nutshell
- The employer's registered office may be outside the border area
- Counts the physical place where the work is performed
- Basic requirement: residence within 20 km of the border
- The limits for teleworking set at 25% per year have been confirmed
Key facts
- What: Answer question no. 126/2026 Revenue Agency
- When: Enforcement of post-Agreement 2020 legislation
- Where: Border area (Lombardy, Piedmont, Ticino, Graubünden)
- Who: Scientific informant resident in Ticino
- Amount: Deductible of 10,000 euros for new frontier workers
The Revenue Agency has dissolved an interpretative knot that burdened thousands of cross-border workers through the answer to call no. 126/2026. The case under consideration concerns a worker residing in a Swiss border municipality in the Canton of Ticino, employed as a scientific informant of the drug. The professional operates entirely in Lombardy, therefore within 20 km of the Swiss border, but on behalf of a company that has its registered office in Veneto, a region totally unrelated to the map of border areas. The central question was whether the geographical location of the employer's administrative headquarters could preclude access to the preferential tax regime provided for by the New Agreement between Italy and Switzerland.
The primacy of physical performance
The Tax Office has determined that the tax status of the worker is governed by
Operational details
Old and new border crossers: the differences in the withdrawal
The Revenue Agency's clarification fits into a tax system now divided into two distinct tracks. The so-called old frontier workers are those who worked in Switzerland for at least one day between 31 December 2018 and 17 July 2023. For this category, the agreement guarantees the maintenance of the exclusive taxation regime at source in Switzerland, with a total IRPEF exemption in Italy. This right remains valid even in the event of a change of employer, provided that the interruption of the relationship does not exceed 12 months and that the new employment remains in the border area.
The New Hire Mechanism
For those who started the business from 18 July 2023, the situation changes radically towards a competing taxation model. In this scenario, Switzerland applies a reduced source tax, equal to 80% of the ordinary tax calculated according to the cantonal tables. The worker is then required to present the dichiarazione dei redditi in Italy. Mandatory Swiss and Italian social security contributions are separate from the calculation of income tax. Article 4 of Italian Law No. 83/2023 applies this limit exclusively to employment income earned continuously and exclusively by Italian residents in a foreign border area or neighbouring country, as referred to in Article 1(175) of Law No. 147/2013; it is not a general allowance or an exemption from Swiss withholding tax. To avoid double taxation, a tax credit is recognized for what has already been paid to the Swiss authorities.
A critical aspect concerns the management of the smart
Key points
Procedures and checks for the worker
To benefit correctly from the tax regime, the worker must ensure that their contractual and logistical situation complies with the parameters defined by interpello 126/2026. The first step is to verify the kilometric distance between the municipality of residence and the border, which must be less than or equal to 20 km. Subsequently, it is necessary for the employment contract or a statement from the employer to clearly specify that the performance takes place within the border area, regardless of where the company's legal headquarters is located. This document is essential in case of checks by Italian tax authorities.
Declaration obligations and deadlines
New border workers must pay particular attention to the completion of specific tables in the Redditi or 730 model. Mandatory Swiss and Italian social security contributions are separate from the calculation of income tax. Article 4 of Italian Law No. 83/2023 applies this limit exclusively to employment income earned continuously and exclusively by Italian residents in a foreign border area or neighbouring country, as referred to in Article 1(175) of Law No. 147/2013; it is not a general allowance or an exemption from Swiss withholding tax. The calculation of the tax credit requires proof of payments made in Switzerland for income tax at source. Even old border workers, although enjoying exemption, must monitor any changes in their situation, such as exceeding the 12-month inactivity limit that could make them lose the transitional regime of favor.
The tax authority's decision represents a revolution for Italian companies located far from the border that intend to take advantage of professionals residing in Switzerland. The possibility of correctly classifying these workers as border workers, even with headquarters in Venice or Rome, opens up new recruitment opportunities without creating tax uncertainty for the employee. To calculate with precision the impact of taxes on the payroll and check the actual net, it is possible to use the dedicated calculator, which takes into account the current tax rates and the allowances provided for by law 83/2023.
It is recommended to always keep copies of residence certificates and time sheets that attest to physical presence in the border area, especially for itinerant professions such as scientific informants. Compliance with the requirements for daily commuting remains an indispensable pillar for maintaining access to the tax benefits provided by the Italian-Swiss order.
Source: quifinanza.it
Frequently Asked Questions
- Can the company be based in Milan if I work on the border?
- Yes, according to the Revenue Agency's request 126/2026, the employer's registered or administrative office can be located anywhere, even outside the border area. What matters is that the work is carried out physically within 20 km of the border and that the worker resides in a border municipality with daily return.
- What are the taxes for a new border worker hired after July 17, 2023?
- The Article 9 transitional regime applies only to workers who meet the Agreement’s definition and worked in Graubünden, Ticino or Valais between 31 December 2018 and 17 July 2023; covered employment income is taxable exclusively in Switzerland. The ordinary regime applies in other cases, with Italian taxation and credit for Swiss tax where applicable. The €10,000 in Article 4 of Law 83/2023 is only the income limit referred to in Article 1(175) of Law 147/2013, not a general allowance. FTA factsheet · Agreement, Article 9 · Normattiva, Article 4. You can deduct AVS and LPP contributions and get a tax credit for taxes already paid in Switzerland to avoid double taxation.
- What happens if I exceed 25% of smart working?
- Exceeding the threshold of 25% of total working time in teleworking mode entails the immediate loss of the status of tax frontier. In this case, the worker loses the right to the benefits of the 2020 Agreement and his income is taxed according to the ordinary rules, without specific deductibles.