New Tax Agreement 2024 | Frontaliere Ticino
New Tax Agreement 2024 — free tools and expert guides for cross-border workers (frontalieri) between Switzerland and Italy. Compare salaries, tax, LAMal health insurance, pensions, and cost of living in Ticino. Updated 2026.
Context
What changes with the new Italy-Switzerland fiscal agreement The new tax agreement between Italy and Switzerland, in force since 2024, introduces concurrent taxation: Switzerland levies withholding tax and Italy supplements with IRPEF. Source: Agreement of 23 December 2020, ratified by Law No. 83 of 17 July 2023 (Gazzetta Ufficiale).
Operational details
Comparison: 1974 agreement vs 2020 agreement | Aspect | 1974 Agreement | New 2020 Agreement | |---|---|---| | Taxation | Switzerland only (withholding tax) | Concurrent: Switzerland + Italy | | Italian IRPEF | Exempt | Due (with €10,000 allowance and tax credit) | | Fiscal rebates to municipalities | Yes (38.8% of withholding tax) | Phased out by 2033 | | Who is affected | All cross-border workers | Distinguishes old (pre-2024) and new workers | | Border distance | No limit | New: municipalities within 20 km of the border | | Reduced CH rate | No | Yes, 80% for new cross-border workers | ## How concurrent taxation works For new cross-border workers Switzerland retains 80% of the withholding tax. The remaining 20% is transferred to Italian border municipalities as fiscal rebates.
Key points
Transitional period and fiscal rebates The €10,000 allowance means the first €10,000 of income is exempt from Italian IRPEF. Additionally, taxes paid in Switzerland are deducted as a foreign tax credit. ## Frequently asked questions about the new fiscal agreement Does the new agreement apply to all cross-border workers? No. "Old cross-border workers" (employed in Switzerland before 17 July 2023) keep the previous regime until 2033. "New cross-border workers" (hired from 17 July 2023 onwards) are subject to concurrent taxation immediately. Do I have to pay taxes twice? No. The system provides a tax credit: withholding taxes paid in Switzerland are deducted from Italian IRPEF, avoiding double taxation. The net additional cost for new cross-border workers is typically limited to Italian regional and municipal surcharges. What are fiscal rebates (ristorni)? Fiscal rebates are the share of Swiss withholding tax (38.8%) that was returned to Italian border municipalities. Under the new agreement, rebates are gradually phased out between 2024 and 2033 (Source: Art. 9, Agreement of 23 December 2020). How does the new cross-border worker's payslip change? Swiss withholding tax is reduced to 80% of the standard rate. In return, the new cross-border worker must declare Swiss income in Italy and pay IRPEF (with a €10,000 allowance and credit for Swiss taxes). Net monthly pay is typically 5-8% lower than under the old regime. Sources: Italy-Switzerland Agreement of 23/12/2020; Law No. 83/2023; DL 113/2024 Art. 6; AdE Circular No. 25/2024.