How does double taxation work?

Double taxation is a problem that occurs when an individual is subject to two different tax systems. In this case, frontier workers are subject to both tax systems, which means they have to pay taxes in two different countries. The tax credit (EC framework of 730) is a system that avoids double taxation, so that border workers can apply for the tax credit in Italy for taxes already paid in Switzerland.

What is the amount of the deductible for frontier workers?

The deductible for frontier workers is €10,000.

When will the New Frontier Agreement come into force?

The New Frontier Agreement will enter into force from 1 January 2024.

Living in Saltrio and working in Ticino as a border worker: what changes? (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 9 August 2026

Set at source, new border agreement and double taxation: what it means for Ticino border crossers

Context

In a nutshell

Tax at source is ONLY withheld in Switzerland for frontier workers.
Italy avoids double taxation with the tax credit (EC framework of 730).
The New Frontier Agreement was signed on 23 December 2020 and will be in force from 1 January 2024.

Living in Saltrio and working in Ticino as a border worker: what changes?

Ticino is a popular place to stay for many frontier workers, thanks to its strategic geographical location and dynamic economy. However, frontier life can be complex, especially when it comes to taxes and contributions. In this article, we will explore the main novelties of the New Frontier Agreement and how these could affect frontier workers living in Saltrio and working in Ticino.

Tax at source

Tax at source is a tax that is withheld directly from the worker's salary. In Switzerland, the Tax at source is applied only to frontier workers, while in Italy it is not applied. This means that frontier workers living in Saltrio and working in Ticino may have to pay the Tax at source only in Switzerland.

Here is a concrete example: if a frontier worker lives in Saltrio and works in Ticino with a salary of CHF 60,000 per year, the Tax at source could be around CHF 7,000 per year (according to 2022 rates). However, since Italy avoids double taxation with the tax credit, the

Operational details

Key facts

What: New Frontier Agreement
When: 23 December 2020
Where: Switzerland
Who: Swiss and Italian governments
Amount: Not yet specified

The new Frontier Agreement, signed on 23 December 2020 by the Swiss and Italian Governments, introduces significant changes for cross-border workers residing in Switzerland and working in Italy. This agreement aims to simplify bureaucratic procedures and reduce costs for workers crossing the border between the two countries.

Key Changes

Right of residence: Border workers residing in Switzerland and working in Italy can enjoy a longer right of residence, up to 90 days, for each 12-month period.
Residence limits: Frontier workers can stay in Italy for a maximum of 183 days per year, provided they meet the residency requirements in Switzerland.
Labour law: Frontier workers can exercise labour law in Italy, provided they comply with the labour rules and regulations in force in the country.
Social contribution: Frontier workers are subject to social contribution in both Switzerland and Italy, depending on their residence and place of work.

Concrete examples

Example 1: A worker resides in Switzerland and works in Italy for 183 days per year. The worker may enjoy a right of residence of 90 days, based

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

Set to Source

The new law provides for the withholding tax to be withheld ONLY in Switzerland for frontier workers. This means that frontier workers will not have to pay the Tax at source in Italy.

To better understand this concept, let's imagine a concrete example. Suppose a frontier worker laughs in Saltrio and works in Ticino. Your employer in Switzerland will withhold Tax at source on your salary, but you will not need to pay additional tax in Italy. This means that the border worker will be able to keep more money for their own personal expenses or to save money.

Double Taxation

Italy avoids double taxation with the tax credit (EC framework of 730). This means that border crossers will be able to claim the tax credit in Italy for taxes already paid in Switzerland.

For example, if a frontier worker lives in Bellinzona and works in Ticino, they can claim the tax credit in Italy for taxes already paid in Switzerland. This means that it will be able to reduce its tax debt in Italy.

New Frontier Agreement

The New Frontier Agreement was signed on 23 December 2020 and will be in force from 1 January 2024. This agreement provides for new rules for border crossers, including Tax at source and double taxation.

The New Frontier Agreement has been signed to simplify the tax rules for frontier workers. This agreement provides that border crossers can benefit from a reduction in

Evaluating a Ticino job offer? Simulate your net payslip: enter gross salary, marital status and municipality for a detailed breakdown.

Frequently Asked Questions

How does double taxation work?: Double taxation is a problem that occurs when an individual is subject to two different tax systems. In this case, frontier workers are subject to both tax systems, which means they have to pay taxes in two different countries. The tax credit (EC framework of 730) is a system that avoids double taxation, so that border workers can apply for the tax credit in Italy for taxes already paid in Switzerland.
What is the amount of the deductible for frontier workers?: The deductible for frontier workers is €10,000.
When will the New Frontier Agreement come into force?: The New Frontier Agreement will enter into force from 1 January 2024.