If I work in Ticino and reside in Italy, do I have to present the 730 even if I earn little?

If your gross income is less than the new agreements deductible (€10,000 for new frontier workers, €7,500 for old ones, until 2033), you are not obliged. However, it is advisable to still present the 730 to document your status and access possible refreshments. The Stg from the Swiss employer is essential and must arrive by March 31.

How do I avoid double taxation between Switzerland and Italy?

There is no 'double taxation' in the common sense. The Swiss source tax is paid in a paycheck, then recognized by tax credit in the EC framework of Italian 730. The Convention of 9 December 1976 regulates this mechanism. If the Swiss tax exceeds the Italian IRPEF, you receive a refund from the Revenue Agency.

What is the difference between old and new border for deductions?

From 1 January 2024 (new agreement, Law 83/2023), old frontier workers (registered before 17 July 2023) have an exemption of €7,500 per year tax-free, the new €10,000, until 31 December 2033. It is an exemption from the Italian tax base, not a 'deduction' of expenses. Excess income is not taxed in Italy during the transitional regime.

When do I get refreshed from 730?

If the 730 is submitted by 30 June (for 2025 income: by June 2026), the Agency sends the result and any refill by August-September of the same year. The refund is automatically credited to your Italian account. It is not taxable in Italy: it is a restatement of your tax due, not an additional income.

Can I choose whether to insure in Switzerland (LAMal) or Italy (CMI) as a frontier?

Yes. With permission G you have the right of option. LAMal is deductible from Swiss taxes (federal and cantonal), Italian CMI reduces the taxable income IRPEF. The choice depends on your income and desired coverage. See the [comparatore assicurazione malattia frontalieri](nav:health) for a personalized assessment.

Border deductions 2026: tax credit and deductibles (cross-border guide)

Di Marco Ferrari · Published on 3 September 2026

Cross-border worker tax documents, euros and Swiss francs, calculator and Ticino-Italy border view

Swiss source tax, Italian tax credit, new agreement with deductibles: complete guide for border workers Ticino-Italy 2024-2033.

Context

In brief

Withholding tax only in Switzerland; tax credit in Italy (quadro CE of the 730)
New cross-border agreement effective from 1 January 2024; allowances €7,500–€10,000
Transitional regime 2024-2033 for reduced taxation in Italy

Key facts

What: Tax credit and allowances for CH-Italy cross-border workers
When: New agreement from 1 January 2024 (signed 23 December 2020)
Where: Cross-border workers Ticino-Italy (Lugano, Mendrisio, Chiasso, Bellinzona)
Who: Permit G (employed workers)
Base convention: 9 December 1976

For cross-border workers who work in Switzerland and reside in Italy, taxation is not double but coordinated. The withholding tax is withheld by the Swiss employer in the pay slip, then Italy recognizes it through a tax credit in the quadro CE of the 730. The result: a single taxation.

The new cross-border agreement, effective from 1 January 2024 (ratified by Italy with Law 83/2023), introduces decisive allowances. Old cross-border workers (registered before 17 July 2023) have €7,500 annually tax-free in the transitional regime 2024-2033. New cross-border workers: €10,000. The income below the allowance is not taxed in Italy during this period.

The withholding tax is withheld ONLY by the Swiss employer. To this are added the contributions: AVS (pension and disability, 5.3% charged to the employee), AD/AC (unemployment, 1.1% up to CHF 148,200), LAINF (work accidents, 0.7–1.5%), LPP (supplementary pension, 7–18% according to age, from 25 years).

In Italy: IRPEF 23% up to €28,000, 35% from €28,001 to €50,000, 43% beyond. The Swiss tax credit reduces this rate.

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Operational details

The new agreement: allowances and transitional regime

The new agreement changes details: allowances are the main novelty. If you are an old cross-border worker (registered before July 17, 2023), your annual income up to €7,500 will not be taxed in Italy from January 1, 2024, to December 31, 2033. If you are a new cross-border worker, the threshold increases to €10,000.

This is not a "deduction" (like medical expenses or mortgage deductibility): it is an exemption from the taxable base. Practical example: gross Swiss income CHF 55,000 (approximately €51,700 at the average exchange rate). As an old cross-border worker, you calculate IRPEF only on €51,700 – €7,500 = €44,200. As a new one, only on €51,700 – €10,000 = €41,700. The difference is significant if your income is low or medium.

The Italian ratification was Law 83 of June 13, 2023. The effective date is January 1, 2024. The regime is transitional: it expires on December 31, 2033 (ten years). After this date, the allowances can be renegotiated between the two countries.

Hypothetical scenario: comparison old vs new cross-border worker

Imagine a cross-border worker with an annual gross salary of CHF 55,000. Withholding tax + AVS/AI/AD/AC represents approximately CHF 12,000 (average exchange rate EUR 11,300).

Case 1: Old cross-border worker — IRPEF on (€51,700 – €7,500) = €44,200. Rate 23% = €10,166 due in Italy. Tax credit EUR 11,300 > EUR 10,166 → refund of approximately EUR 1,100–1,200.

Case 2: New cross-border worker — IRPEF on (€51,700 – €10,000) = €41,700. Rate 23% = €9,591. Tax credit EUR 11,300 > EUR 9,591 → more generous refund, approximately EUR 1,700–1,800.

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Key points

How to fill out the 730 as a cross-border commuter

If you work in Switzerland and live in Italy, you must submit the Italian 730 by June 30 of the following year (for 2025 income: deadline June 30, 2026). If your income is fully covered by the exemption (e.g., €8,000 gross as a new cross-border commuter), you are not technically required to do so, but it is advisable to submit it anyway to document your status as a cross-border commuter and access any potential refunds.

Required documents:

1. Certificate of tax liability (Stg) from the Swiss employer — by March 31 of the following year. It must detail: gross income, tax withholdings for canton and municipality, AVS/AI/AD/AC/LAINF contributions, LPP contribution (if applicable). If you work in Ticino (Lugano, Mendrisio, Bellinzona, Locarno), the document specifies the applicable Ticino cantonal rate.

2. Proof of residence in Italy — self-certification of the residential address (province Varese, Como, or another border province depending on your Italian municipality). Some CAFs also require a cadastral survey.

3. Model 730 (not Redditi PF) — filled out with: employment income (gross Swiss income indicated in the Stg); CE section (tax credits, Swiss withholding tax paid, automatically completed by the CAF); application of exemption (if old/new cross-border commuter). Some CAFs still have non-standardized forms for this function (it is a 2024 novelty), so check with your CAF that they are aware of the new agreement.

Step-by-step towards the refund

Step 1 — Receive the Stg from the employer by March 31. If delayed, ask the HR department of your company in Switzerland.

Step 2 — Convert the Swiss tax amount to EUR using the average ECB exchange rate for the fiscal year (not the daily rate: the Agency uses an official exchange rate).

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Frequently Asked Questions

If I work in Ticino and reside in Italy, do I have to present the 730 even if I earn little?: If your gross income is less than the new agreements deductible (€10,000 for new frontier workers, €7,500 for old ones, until 2033), you are not obliged. However, it is advisable to still present the 730 to document your status and access possible refreshments. The Stg from the Swiss employer is essential and must arrive by March 31.
How do I avoid double taxation between Switzerland and Italy?: There is no 'double taxation' in the common sense. The Swiss source tax is paid in a paycheck, then recognized by tax credit in the EC framework of Italian 730. The Convention of 9 December 1976 regulates this mechanism. If the Swiss tax exceeds the Italian IRPEF, you receive a refund from the Revenue Agency.
What is the difference between old and new border for deductions?: From 1 January 2024 (new agreement, Law 83/2023), old frontier workers (registered before 17 July 2023) have an exemption of €7,500 per year tax-free, the new €10,000, until 31 December 2033. It is an exemption from the Italian tax base, not a 'deduction' of expenses. Excess income is not taxed in Italy during the transitional regime.
When do I get refreshed from 730?: If the 730 is submitted by 30 June (for 2025 income: by June 2026), the Agency sends the result and any refill by August-September of the same year. The refund is automatically credited to your Italian account. It is not taxable in Italy: it is a restatement of your tax due, not an additional income.
Can I choose whether to insure in Switzerland (LAMal) or Italy (CMI) as a frontier?: Yes. With permission G you have the right of option. LAMal is deductible from Swiss taxes (federal and cantonal), Italian CMI reduces the taxable income IRPEF. The choice depends on your income and desired coverage. See the [comparatore assicurazione malattia frontalieri](nav:health) for a personalized assessment.