Grenzgänger schweiz steuern 2026: rules and obligations

Context

Summary

• Withholding tax deducted in Switzerland
• New Agreement in force since January 1, 2024
• Distinction between old and new cross-border workers
• Tax credit in Italy via section CE

Key Facts

• What: Income tax on employment earnings
• When: From January 1, 2024 with the new agreement
• Where: Canton of Ticino and Switzerland
• Who: Federal Tax Administration
• For Article 9 of the Agreement, “old frontier workers” are people who met the tax requirements and worked in Graubünden, Ticino or Valais on 17 July 2023 or during the period from 31 December 2018 through 17 July 2023. Article 9 keeps covered employment income taxable exclusively at source in Switzerland; other workers follow the ordinary regime, with ordinary taxation in Italy, a credit for Swiss tax and Swiss withholding at 80% of the ordinary rates. The €10,000 figure in Article 4 of Italian Law No. 83/2023 is only the income limit referred to in Article 1(175) of Law No. 147/2013; it is not a general allowance for new frontier workers. Sources: ESTV factsheet (Italian) · Agreement, Art. 9 · Law No. 83/2023, Art. 4.

The tax landscape for those working across the border presents well-defined rules established by the competent authorities. Withholding tax on employment income for cross-border workers is deducted in Switzerland, thus avoiding double taxation thanks to the mechanisms provided and the use of section CE of the 730 tax return model in Italy. The management of tax rates and deductions is directly handled by federal and cantonal laws, administered by the Swiss Federal Tax Administration FTA at the federal level and by the competent cantonal administrations, without any intervention by unauthorized bodies such as the FSIO or FSO.

The regulatory framework

Currenly, the Double Taxation Convention between Italy and Switzerland was signed on March 9, 1976. Subsequently, the New Agreement for cross-border workers was signed on December 23, 2020 and officially entered into force on January 1, 2024, with Italian ratification taking place via Law 83 of June 13, 2023. This regulatory evolution has redefined the tax perimeter for thousands of workers who cross border checkpoints such as Brogeda every day to go to the Canton of Ticino, clearly distinguishing between the position of those who started before or after the watershed date of July 17, 2023.

Practical and operational scenarios

For a worker residing in Como who commutes daily to Lugano, the economic impact varies based on status. The €10,000 limit is not a general allowance: Article 4 of Italian Law No. 83/2023 applies it only to the income referred to in Article 1(175) of Law No. 147/2013. The withholding tax applied by the Swiss authorities is declared in Italy using the 730 model, entering the data in section CE to obtain the tax credit and avoid double taxation. Workers active in border municipalities such as Mendrisio or Chiasso must annually verify the certifications issued by their Swiss employer to complete their tax return by the Italian tax deadlines.

Operational details

The application of deductions on Swiss payslips involves specific statutory rates and contributions. Regarding social security and insurance in Switzerland, we find AVS, AI, and IPG contributions set at 5.3 percent borne by the employee, the AD/AC unemployment insurance at 1.1 percent with a ceiling of one hundred forty-eight thousand two hundred francs, LAA accident coverage ranging between 0.7 and 1.5 percent, and LPP occupational pension contributions varying from 7 to 18 percent based on the age bracket starting from 25 years.

Analyzing a practical case in Lugano, an employee with a monthly gross salary of five thousand francs incurs ordinary social security deductions of approximately six hundred francs. On the Italian taxation front, IRPEF income tax rates are structured into three main brackets: 23 percent up to twenty-eight thousand euros, 33 percent for the portion between twenty-eight thousand and one and fifty thousand euros, and 43 percent for incomes exceeding fifty thousand euros.

Differences between old and new cross-border workers

Current regulations, governed by the bilateral agreement ratified on July 17, 2023, and entered into force on January 1, 2024, establish different regimes depending on the start date of employment in Switzerland. Workers who were already cross-border commuters before July 17, 2023, in cantons such as Ticino, Graubünden, or Valais benefit from a transitional regime lasting from 2024 to 2033, as well as a specific exemption of seven thousand five hundred euros and exclusive taxation in Switzerland with the return of forty percent of the taxes to Italian municipalities of residence, such as Mendrisio or Porlezza.

The €10,000 threshold in Article 4 of Italian Law No. 83/2023 applies 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 neither a general allowance nor an exemption from Swiss withholding tax. The new Agreement regime has applied since 1 January 2024. To verify the overall impact on one's net income and compare the tax situation, the tax calculator represents a useful tool to simulate deductions and plan one's contribution and tax position between the two States.

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

Managing tax compliance requires careful attention to deadlines and procedures established by the Italian Revenue Agency and Swiss authorities. Cross-border workers residing in Italian municipalities such as Como or Varese who work in Lugano or Mendrisio must correctly declare the income earned in Switzerland within their Italian tax return, utilizing the tax credit to definitively eliminate the risk of double taxation on the same employment income. At the same time, regarding healthcare, workers with a G permit retain the right of option for LAMal health insurance coverage within three months of employment, with adult deductibles ranging between three hundred and two thousand five hundred Swiss francs, distinctly differing from any concept of a health tax.

Compliance and periodic checks

To properly manage one's economic and social security position, it is essential to regularly monitor the documentation issued by the Swiss employer and verify the payments made to INPS and the competent authorities, including contributions to the second pillar LPP. It is advisable to periodically review your pay slip to check the items related to withholding taxes at source and mandatory social contributions such as AVS, AI, and IPG.

To optimize the management of cross-border income, for example by converting a net monthly salary of five thousand Swiss francs earned in Chiasso, it is appropriate to carefully evaluate the transaction costs and exchange rates applied by credit institutions. To delve deeper into financial planning and check the available options for currency exchange and cross-border income management, you can consult the currency exchange comparator to optimize financial flows between Swiss francs and euros.

Article 1(237–238) of Italian Law No. 213/2023 does not apply indiscriminately to all cross-border workers. It covers: (a) Italian residents who work and stay in Switzerland and use the Italian SSN; (b) frontier workers under Article 9(1) of the Italy–Switzerland Agreement whose income is taxable only in Switzerland and who exercised the legal right to choose health insurance; and (c) dependants of those two categories. Paragraph 238 sets a progressive 3–6% share of net Swiss salary, with a €30 minimum and an ordinary €200 maximum for each month worked from 2024. The cap may be doubled in cases of omitted payment or omitted communication specified in Article 1(100) of Law No. 207/2024. The Region of residence sets the rates and procedure each year.