How does the tax return work for Switzerland-Italy cross-border workers?

The tax return is an obligation for new cross-border workers and for other workers residing in Italy whose salary in Swiss francs is also taxed in Italy; 'old' cross-border workers under the transitional regime are taxed only in Switzerland. The goal is to regularize one's position with the Italian tax authorities, declaring income produced in the Canton of Ticino and avoiding double taxation thanks to bilateral agreements. The Modello 730 is due by September 30, 2026, and Redditi PF online by November 2, 2026.

When is it advisable to start collecting documents for the tax return for a Switzerland-Italy cross-border commuter?

It is advisable to start collecting documents as early as spring, to have enough time for filling out and tax planning.

What changes for cross-border commuters between the old and the new Switzerland-Italy tax agreements?

The 'old' cross-border workers (living within 20 km of the border and working in the cantons of Ticino, Graubünden or Valais between 31 December 2018 and 17 July 2023) remain under the transitional regime and are taxed exclusively in Switzerland. The 'new' cross-border commuters, on the other hand, face concurrent taxation: Switzerland applies a reduced withholding tax (80% of the ordinary tax) and Italy taxes the income above the 10,000-euro allowance, recognizing a credit for taxes already paid in Switzerland.

How is the tax credit for cross-border commuters calculated in Italy?

The Swiss gross income is converted into euros at the reference rate for the day each salary payment was received (if no rate was set, the monthly average); the 10,000-euro allowance is then deducted and the Italian gross income tax is calculated on the excess. The credit equals the final taxes paid in Switzerland, reduced in the same proportion in which the foreign income counts towards total income, and cannot exceed the IRPEF relating to the foreign income.

What are the essential documents for the tax return of Switzerland-Italy cross-border commuters?

Essential documents include the Lohnausweis (Swiss salary certificate), proof of withholding tax paid required by the the competent authority procedure, the employment contract, the latest pay slips and a copy of the work permit G. These documents are essential to correctly fill in Quadro C and Quadro G of the 730 (or Quadro RC and CE of Redditi PF).

Cross-Border Worker Tax Return: 730 Guide for Ticino

Di Marco Ferrari · Published on 23 February 2026 · Updated on 26 September 2026

Cross-border worker filling out the Italian 730 tax form with Swiss and Italian documents on a desk overlooking Bellinzona.

Form 730/2026 and Redditi PF: where to report your Swiss salary, how to calculate the tax credit, and what documents are needed. The complete guide for cross-border workers in Ticino.

Context

TL;DR

New cross-border workers must file Modello 730 or Redditi Persone Fisiche; 'old' cross-border workers under the transitional regime are taxed only in Switzerland.
New tax agreement distinguishes between 'old' and 'new' cross-border workers.
Swiss salary goes in Quadro C (730) or RC (Redditi PF); the tax credit in Quadro G (730) or CE (Redditi PF).
2026 deadlines (tax year 2025): Modello 730 by September 30, 2026; Redditi PF online by November 2, 2026.

Key facts

Deadline: September 30, 2026 for the 730; November 2, 2026 for filing Redditi PF online (October 31 falls on a Saturday).
Old workers (transitional regime): Swiss salary taxed exclusively in Switzerland.
Cross-border allowance: 10,000 euros since 2024 (previously 7,500 euros); only the excess is taxed in Italy.
New workers: Subject to concurrent taxation with a tax credit for taxes paid in Switzerland.
Form sections: Swiss salary in Quadro C (730) or RC (Redditi PF); tax credit in Quadro G (730) or CE (Redditi PF).
Tax credit: Italy grants a credit equal to the final taxes paid in Switzerland, reduced in proportion to the share of foreign income that is taxable in Italy.
Exchange rate: Bank of Italy reference rate for the day each salary payment was received (if no rate was set, the monthly average).
Penalties: 120% of the tax due (minimum 250 euros) for an omitted return; 70% of the additional tax for an inaccurate return.
Essential documents: Lohnausweis, withholding tax certificate, employment contract, payslips, G work permit.

The tax return deadline is approaching, and for the thousands of cross-border workers who cross the borders at Chiasso, Gaggiolo, or Ponte Tresa daily, a crucial fiscal appointment returns. Filing the Modello 730 (or Redditi Persone Fisiche) is not an option but an obligation for new cross-border workers and for other workers residing in Italy whose salary in Swiss francs is also taxed in Italy. The goal is singular: to regularize one's position with the Italian tax authorities by declaring income earned in Canton Ticino and, above all, avoiding double taxation thanks to bilateral agreements. The issue has become more complex with the new tax agreement, in force since July 17, 2023, which clearly distinguishes between "old" cross-border workers (living within 20 km of the border and working in the cantons of Ticino, Graubünden or Valais at any time between December 31, 2018 and July 17, 2023) and "new" ones. The former remain under the transitional regime: their salary is taxed exclusively in Switzerland and is not subject to IRPEF. The latter, however, are subject to concurrent taxation: Switzerland applies a reduced withholding tax (equal to 80% of the ordinary rate), and Italy taxes the income above the 10,000-euro allowance, granting a credit for taxes already paid in Ticino (Agenzia delle Entrate circular 25/E). This mechanism, designed to eliminate double taxation, requires careful and precise completion of the Italian tax form, particularly the sections for foreign income and the tax credit.

Operational details

The core of the tax return for a cross-border worker is two sections. In the 730, the Swiss salary goes in Quadro C (lines C1-C3, code 4 "border zones") and the credit in Quadro G (line G4); in Redditi PF, the salary goes in Quadro RC (code 4, with the exempt portion in line RC5) and the credit in Quadro CE - Tax credit for income earned abroad (730/2026 instructions). This is where data from the Swiss salary certificate, the so-called Lohnausweis, must be entered. The main challenge lies in the correct conversion of income from Swiss francs to euros and in the calculation of the tax credit.

Calculating the tax credit

To avoid paying taxes twice on the same income, Italy grants a credit equal to the final taxes paid in Switzerland. The calculation is not trivial. First, you must convert the gross Swiss income into euros: the official instructions require the reference rate for the day each salary payment was received (or the nearest preceding day; if no rate was set, the monthly average), available on the Bank of Italy website. The 10,000-euro allowance is then deducted, and the gross Italian income tax (IRPEF) is calculated on the excess. Because the foreign income only partly counts towards total income, the Swiss tax is reduced in the same proportion. The tax credit cannot exceed the portion of IRPEF related to the foreign income.

📊 Practical example (new cross-border worker):

Gross annual income in Ticino: 70,000 CHF
Withholding tax paid in Ticino (hypothetical reduced rate): 5,600 CHF
CHF/EUR exchange rate (hypothetical, kept constant all year for simplicity): 1.05
Income in euros: €66,667
Cross-border allowance: €10,000, income taxable in Italy: €56,667
Swiss tax in euros: €5,333, reduced proportionally (56,667/66,667) to €4,533
Gross IRPEF on €56,667 using the 2025 brackets (23%, 35%, 43%): €17,007

The cross-border worker can deduct a maximum credit of €4,533 from the due IRPEF.

⚠️ Essential Documents:

The Lohnausweis (Salary Certificate) issued by the Ticino employer.
Documentation proving withholding taxes paid, following the procedure of the competent authority.
Employment contract and recent payslips.
Copy of the G work permit.

Key points

The deadline for filing the Modello 730 is September 30, 2026; Redditi PF can be filed online until November 2, 2026. Missing this appointment or making mistakes can be costly: an omitted return carries a penalty of 120% of the tax due (minimum 250 euros), an inaccurate return 70% of the additional tax (art. 27 of Legislative Decree 173/2024). The most common errors involve using an incorrect exchange rate, failing to declare other income (real estate, financial), or an inaccurate calculation of the tax credit.

Tips to avoid mistakes

💡 Rely on an expert: A CAF or an accountant specializing in Italian-Swiss international taxation is an investment, not a cost. They know the specifics of the Lohnausweis and the circulars from the Italian Revenue Agency. 💡 Keep everything: Keep the documentation for the period required by the applicable rules; for the foreign-tax credit, verify the documents requested by the Revenue Agency. 💡 Plan ahead: Don't wait until September. Collect your Swiss documents in the spring and make an initial estimate of what you owe. Having a clear picture of your salary and deductions is fundamental for proper tax planning. Even before filling out the 730, understanding the impact of Swiss and Italian taxes on your final net pay can make a significant difference. For this reason, tools like our net salary calculator become a valuable ally for accurately simulating your situation.

Source: Italian Revenue Agency (730/2026 and Redditi PF 2026 instructions, circular 25/E of August 18, 2023), 2020 Italy-Switzerland cross-border workers agreement (Law 83/2023), Legislative Decree 173/2024; Agenzia delle Entrate, Quadro G. Data checked on September 24, 2026.

Frequently Asked Questions

How does the tax return work for Switzerland-Italy cross-border workers?: The tax return is an obligation for new cross-border workers and for other workers residing in Italy whose salary in Swiss francs is also taxed in Italy; 'old' cross-border workers under the transitional regime are taxed only in Switzerland. The goal is to regularize one's position with the Italian tax authorities, declaring income produced in the Canton of Ticino and avoiding double taxation thanks to bilateral agreements. The Modello 730 is due by September 30, 2026, and Redditi PF online by November 2, 2026.
When is it advisable to start collecting documents for the tax return for a Switzerland-Italy cross-border commuter?: It is advisable to start collecting documents as early as spring, to have enough time for filling out and tax planning.
What changes for cross-border commuters between the old and the new Switzerland-Italy tax agreements?: The 'old' cross-border workers (living within 20 km of the border and working in the cantons of Ticino, Graubünden or Valais between 31 December 2018 and 17 July 2023) remain under the transitional regime and are taxed exclusively in Switzerland. The 'new' cross-border commuters, on the other hand, face concurrent taxation: Switzerland applies a reduced withholding tax (80% of the ordinary tax) and Italy taxes the income above the 10,000-euro allowance, recognizing a credit for taxes already paid in Switzerland.
How is the tax credit for cross-border commuters calculated in Italy?: The Swiss gross income is converted into euros at the reference rate for the day each salary payment was received (if no rate was set, the monthly average); the 10,000-euro allowance is then deducted and the Italian gross income tax is calculated on the excess. The credit equals the final taxes paid in Switzerland, reduced in the same proportion in which the foreign income counts towards total income, and cannot exceed the IRPEF relating to the foreign income.
What are the essential documents for the tax return of Switzerland-Italy cross-border commuters?: Essential documents include the Lohnausweis (Swiss salary certificate), proof of withholding tax paid required by the the competent authority procedure, the employment contract, the latest pay slips and a copy of the work permit G. These documents are essential to correctly fill in Quadro C and Quadro G of the 730 (or Quadro RC and CE of Redditi PF).