How does double taxation work?

Double taxation applies when Switzerland and Italy both impose tax on the income of a frontier worker.

What is the Italy-Switzerland double taxation convention?

The agreement was signed on 9 December 1976 and provides for Switzerland and Italy to avoid double taxation on the income of border workers.

Moving to Luino by border crossing: pros and cons (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 28 July 2026

Setting at source, double taxation and exemption for frontier workers.

Context

In a nutshell

The new Frontier Agreement was signed on 23 December 2020 and will enter into force on 1 January 2024.
The Italy-Switzerland double taxation agreement was signed on 9 December 1976.
Switzerland is not a member of the EU/EEA.

Moving to Luino by border crossing: pros and cons

Luino is a municipality located in the province of Varese, Lombardy, near the border with Switzerland. Moving to Luino by frontier can be an attractive choice for those who work in Switzerland and want to enjoy a higher quality of life and greater ease of movement. However, there are also some aspects to consider before making a decision.

Pro

Switzerland and Italy have signed the Frontier Agreement, which provides for a deductible of €10,000 for frontier workers.
Luino is a municipality with good infrastructure, including a train station and a highway to Switzerland.
The area offers a variety of recreational activities, such as Lake Maggiore and the surrounding hills.
Switzerland is not a member of the EU/EEA, which means it is not subject to the same tax and labour rules as the EU.

Against

Border workers must be nationals of one of the EU or EEA countries and have an employment contract with an employer in one of these countries.
The €10,000 deductible may be considered a limited amount for some frontier workers.
Switzerland

Operational details

Practical analysis

The border worker who decides to move to Luino as a border worker must carefully consider the tax consequences of his choice. First of all, you need to take into account the tax at source in Switzerland, which may vary depending on your economic position and the type of income you earn. In addition, it must consider double taxation with the tax credit, which can be claimed using the CE framework of 730.

The €10,000 deductible is valid for new frontier workers, but it is important to note that this deductible does not apply to all types of incomes. For example, it does not apply to employee income, but it does apply to self-employment income. It is therefore important to consult the table of exempt income to know the limits of application of the deductible.

In addition, the border agent must also consider the Italy-Switzerland double taxation convention signed on 9 December 1976. This convention provides that income from employment and self-employment is subject to taxation in both countries, but that the country of residence of the worker must grant a tax credit to avoid double taxation.

Here's a concrete example of how the €10,000 deductible works. Suppose a frontier worker earns €40,000 a year working as a self-employed entrepreneur in Switzerland. In this case, it is not subject to the €10,000 deductible, as its business is subject to taxation in

Useful tools to protect your net income

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

Key points

Action

The borderman should contact his tax advisor to discuss the implications of source tax and double taxation.
The border agent must also consider the €10,000 deductible and the Italy-Switzerland double taxation agreement.
The border agent must check if he is subject to double taxation and if he is entitled to a deductible.

Concrete examples

For example, a frontier worker who lives in Lugano and works in Luino could be subject to double taxation on property tax. If your income is €50,000, you may be subject to a tax of 2% in Switzerland and another 2% in Italy, for a total of €3,000.

Deductible and agreement

The €10,000 deductible can help reduce double taxation, but the border agent must check if he is entitled to this deductible. For example, if your income is €20,000, you may be subject to double taxation of €1,000, but you may also be eligible for the deductible.

The Italy-Switzerland double taxation convention can also help reduce double taxation. For example, if the frontier worker is resident in Switzerland and works in Italy, he may be subject to double taxation of €2,000, but the convention could help him reduce this tax to €1,000.

Operational Checklists

To avoid double taxation, the border crossing must:

Contact your tax advisor to discuss the implications

First day as a cross-border worker? Our practical guide walks you from cantonal registration to your first paycheck.

Frequently Asked Questions

What is the deductible to which the frontier worker is entitled?: The deductible is €10,000.
How does double taxation work?: Double taxation applies when Switzerland and Italy both impose tax on the income of a frontier worker.
What is the Italy-Switzerland double taxation convention?: The agreement was signed on 9 December 1976 and provides for Switzerland and Italy to avoid double taxation on the income of border workers.