If I work remotely from a third country, in which country will I pay the tax?

Tax at source is withheld exclusively from Switzerland, where the employer is domiciled. Italy avoids double taxation through the tax credit in the EC framework of the tax return (form 730). The income declared in Italy is net of the deductible of €7,500 (old frontier workers) or €10,000 (new frontier workers), and the Italian tax applied is reduced by the Swiss tax credit already paid. You will not pay taxes in the third country from which you work remotely.

Do I stay covered by LAMal if I work remotely abroad?

Yes, the LAMal continues to apply, but the coverage conditions in third countries may be limited compared to Switzerland and Italy. Before you leave, contact your insurance to check for specific coverage in the country where you'll be working. The LAMal deductible (CHF 300-2,500) remains applicable in any case. If coverage is insufficient, consider supplemental travel insurance to cover gaps.

Do I need to communicate something to the Swiss or Italian tax authorities before working remotely abroad?

There is no requirement for prior notification to the AFC (Switzerland) or the Revenue Agency (Italy) for short periods of remote work abroad during the holidays. However, YOU MUST notify your employer for contractual and management matters, in writing, with the precise dates of departure and return. The tax situation remains covered by the ordinary border regime.

How do I declare income if I have worked a few days remotely abroad?

In the Italian 730 of the following year, declare ALL gross income received by Switzerland in the CE framework, regardless of where you worked from. It also shows the Swiss tax paid at source (from the single CU certificate) as a tax credit in the EC framework. The reporting software will automatically calculate the Italian tax, reducing the taxable amount for the deductible (€7,500 or €10,000) and deducting the foreign tax credit.

Does the New Frontier Agreement from 2024 suit me with respect to the past?

Yes, the New Agreement in force from 1 January 2024 is beneficial. The deductible of €7,500 (old border guards) or €10,000 (new border guards) reduces the Italian taxable amount, lowering the overall tax. The transitional regime until 2033 keeps this protection stable. Use the payroll calculator to compare your current net to pre-agreement estimates and assess the personal benefit.

Remote work abroad: border taxation (cross-border guide)

Di Marco Ferrari · Published on 22 August 2026

Frontalier working remotely with laptop overlooking alpine landscape

Working remotely from a third country during the holidays involves tax issues, LAMal and communication to the employer. Learn how to manage taxes, refunds, and insurance coverage with the new 2024 agreement.

Context

In a nutshell

Tax at source: withheld ONLY in Switzerland for frontier workers
New Agreement from 1 January 2024: transitional regime until 2033
Old frontier workers: exemption €7,500; New frontier workers: deductible €10,000
LAMal: check coverage before leaving from a remote abroad

Key facts

What: Remote work from a third country during a holiday for border workers from Ticino
When: From 1 January 2024 (New Frontier Agreement in force)
Where: Switzerland (employer's headquarters); Italy (residence); third country (remote location)
Tax: Withheld exclusively from Switzerland
Double taxation: Avoided with tax credit in the EC framework of 730
Communication: Mandatory for the employer

The income tax at source is exclusively withheld from Switzerland: this is the fundamental rule that protects the Ticino border worker when working remotely from a third country during the holidays. But in addition to taxation, there are insurance (LAMal), contractual (communication to the employer) and declaratory issues that the border worker must face in order to operate in compliance.

When a frontier worker continues to receive salary from the Swiss employer while in a third country, the income remains subject to source tax calculated according to Ticino cantonal rates. Nothing changes compared to a week worked by Ticino: Switzerland withholds the tax, the border worker receives the net. The third country (Spain,

Operational details

Practical implications: the net in the paycheck and the tax return

The decision to work remotely from a third country raises concrete questions about the paycheck and tax return. First of all: the net paycheck remains the same as a week worked in Ticino. The tax at source is calculated by Switzerland according to the Ticino cantonal rates, regardless of the physical place from which the border crosser sends emails or attends meetings. If the frontierman earns CHF 2,000 net per week from Ticino, he will earn the same CHF 2,000 from a Caribbean island.

What changes is the following year's tax return. The frontier worker must declare in Italy ALL the gross income received during the calendar year, regardless of where he worked. If you worked from 1 to 5 June from a beach in Mexico and from 6 June from Mendrisio, you still declare 100% of your annual income in the EC framework of 730.

The deductible (€7,500 or €10,000 depending on the category of frontier) is applied to the total declared income: this reduction of the taxable amount is the main benefit of the New Agreement. Subsequently, the Revenue Agency applies progressive personal income tax rates. Finally, it recognizes the foreign tax credit (the Swiss tax paid at source during the year). This credit is decisive: if Switzerland withheld the 10% tax on CHF 80,000 (equal to about CHF 8,000 with the exchange rate

Useful tools for your case

To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.

Key points

Practical Checklist: Fundamental Steps

A cross-border commuter intending to work remotely from a third country during a holiday does not face insurmountable tax complications, but must follow an orderly path to operate in compliance and minimize insurance risks.

Communication to the employer: The first step is to inform your employer in writing (email, formal letter). The email must include precise departure and return dates, the remote work location (or at least the geographical region if the final destination is still uncertain), and a declaration of continuity of work activity. This communication is not a request for authorization—the right to remote work depends on the contract and company policies—but a notification of compliance. The commuter must keep the reply or receipt email, as it proves that the communication was made.

Verification of LAMal coverage: Contact your Swiss health insurance provider and explicitly ask if the policy covers medical treatments in the third country of destination. Obtain the response in writing (email). If coverage is complete, no further action is needed. If it is partial or excluded, consider purchasing supplementary travel insurance before departure. This insurance covers gaps in LAMal and usually includes emergency medical evacuation services.

No prior communication to tax authorities: Contrary to what it might seem, there is NO obligation to notify the Italian Revenue Agency ('Agenzia delle Entrate') or the Swiss Federal Tax Administration ('AFC') in advance that you will be working remotely abroad for a few vacation days. The cross-border tax regime is stable and self-sufficient: the situation remains covered by ordinary rules.

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Frequently Asked Questions

If I work remotely from a third country, in which country will I pay the tax?: Tax at source is withheld exclusively from Switzerland, where the employer is domiciled. Italy avoids double taxation through the tax credit in the EC framework of the tax return (form 730). The income declared in Italy is net of the deductible of €7,500 (old frontier workers) or €10,000 (new frontier workers), and the Italian tax applied is reduced by the Swiss tax credit already paid. You will not pay taxes in the third country from which you work remotely.
Do I stay covered by LAMal if I work remotely abroad?: Yes, the LAMal continues to apply, but the coverage conditions in third countries may be limited compared to Switzerland and Italy. Before you leave, contact your insurance to check for specific coverage in the country where you'll be working. The LAMal deductible (CHF 300-2,500) remains applicable in any case. If coverage is insufficient, consider supplemental travel insurance to cover gaps.
Do I need to communicate something to the Swiss or Italian tax authorities before working remotely abroad?: There is no requirement for prior notification to the AFC (Switzerland) or the Revenue Agency (Italy) for short periods of remote work abroad during the holidays. However, YOU MUST notify your employer for contractual and management matters, in writing, with the precise dates of departure and return. The tax situation remains covered by the ordinary border regime.
How do I declare income if I have worked a few days remotely abroad?: In the Italian 730 of the following year, declare ALL gross income received by Switzerland in the CE framework, regardless of where you worked from. It also shows the Swiss tax paid at source (from the single CU certificate) as a tax credit in the EC framework. The reporting software will automatically calculate the Italian tax, reducing the taxable amount for the deductible (€7,500 or €10,000) and deducting the foreign tax credit.
Does the New Frontier Agreement from 2024 suit me with respect to the past?: Yes, the New Agreement in force from 1 January 2024 is beneficial. The deductible of €7,500 (old border guards) or €10,000 (new border guards) reduces the Italian taxable amount, lowering the overall tax. The transitional regime until 2033 keeps this protection stable. Use the payroll calculator to compare your current net to pre-agreement estimates and assess the personal benefit.