What is the difference between old and new frontiersmen in 2026?

Old frontier workers (already in service before 17 July 2023) are entitled to an exemption of €7,500 per year on a transitional basis until 31 December 2033. New frontier workers are entitled to a deductible of €10,000 per year, with no specified time limit. Both benefit from the exemption in the calculation of the Swiss source tax and the tax credit in the Italian 730. The greater exemption for new frontier workers translates into a reduction in the Italian tax base, with tax savings effects.

How it works the tax credit

The tax credit is reported in the EC framework of the Italian declaration 730. The amount corresponds to the Swiss taxes actually paid: source tax and AVS/AI/IPG contributions (5.3%), plus AD/AC (1.1%), LAINF (0.7–1.5%). The Revenue Agency compares the credit with the personal income tax due in Italy according to the progressive rates (23–43%). If the Swiss taxes exceed the Italian personal income tax, the frontier worker receives a refund; if they are insufficient, he pays an adjustment.

Is the source tax withheld only in Switzerland or even in Italy?

Income tax at source is only withheld in Switzerland. Italy does not apply a double withholding tax thanks to the Double Taxation Convention signed on 9 December 1976. The border worker completes the Italian 730 to recover the tax differences and obtain the tax credit, thus avoiding double taxation on the same income base.

Which health insurance should I choose as a border worker with G Leave?

The border worker with Permit G has the right of option between the Swiss health insurance (LAMal) and the Italian one. LAMal offers adult deductibles between CHF 300 and CHF 2,500. The choice depends on the personal situation, the annual premium costs, the need for medical coverage in Switzerland or Italy and the overall taxation. Many frontier workers choose LAMal for a wider coverage in Switzerland.

When does the transitional regime for old border workers expire?

The transitional regime for old frontier workers (exemption €7,500) is valid from 1 January 2024 to 31 December 2033 (10 years). After 2033, the deductible could return to €10,000 for all border crossers, or follow other regulatory updates not yet specified by official announcements. It is advisable to monitor any new bilateral Italy-Switzerland agreements in the years prior to 2033.

Frontier 2026: taxation, new agreement and exemption (cross-border guide)

Di Marco Ferrari · Published on 27 August 2026

Tax office workspace with cross-border taxation documents and CHF/EUR currency symbols

From 2024, the new Italy-Switzerland agreement reduces taxes for border workers: €7,500 exemption for the old, €10,000 for the new. Here's how it works.

Context

In brief

New tax agreement effective from January 1st, 2024: tax allowance and tax credit for cross-border workers
Tax allowance €7,500 for existing cross-border workers (before 17/7/2023), €10,000 for new ones
Source tax withheld only in Switzerland, tax credit recovered in Italy in section CE of the 730 return

Key facts

What: New Italy-Switzerland agreement on cross-border worker taxation with tax allowance and tax credit
When: Effective from January 1st, 2024 (Italian ratification: Law 83 of June 13, 2023)
Where: Ticino Canton and Italian cross-border province (Permit G)
Who: Cross-border workers with dependent employment income in Switzerland
Tax allowance: €7,500 annual for existing cross-border workers, €10,000 annual for new cross-border workers
Source tax: AVS/AI/IPG 5.3% employee, AD/AC 1.1%, LAINF 0.7–1.5%
Tax credit: Recovery in section CE of the Italian 730 tax return
Base convention: December 9, 1976 (double taxation)

The new Italy-Switzerland cross-border worker tax agreement, signed on December 23, 2020 and effective from January 1st, 2024, represents a significant reduction in the tax burden for those working in Ticino and residing in Italy. The Italian ratification, which occurred with Law 83 of June 13, 2023, consolidated the new rules on tax allowance, source tax, and tax credit. The Convention to avoid double taxation between the two countries, signed on December 9, 1976, remains the regulatory foundation, but the more recent agreement introduces more favorable mechanisms for cross-border workers.

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Operational details

Old cross-border worker scenario

A cross-border worker already in service benefits from an annual exemption of €7,500. The gross income earned in Switzerland is reduced by the exemption in the calculation of Swiss withholding tax. In Italy, the same income is subject to IRPEF according to progressive tax rates: 23% up to €28,000, 35% up to €50,000, 43% above €50,000. Without the tax credit, the cross-border worker would face double taxation on both sides (both Swiss and Italian). Thanks to the agreement, they recover through Schedule CE of the Italian tax return the Swiss taxes already paid, reducing the total tax burden and often obtaining significant refunds.

New cross-border worker scenario

A cross-border worker who started employment from 17 July 2023 onwards is entitled to an annual exemption of €10,000, €2,500 more than for old cross-border workers. This higher exemption reduces the Italian taxable base proportionally. Like the old cross-border worker, they recover the tax credit in the 730 form by reporting the Swiss taxes paid. The advantage of the higher exemption remains unchanged during the 2024–2033 period and beyond, with no time limitations communicated so far.

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Key points

Come compilare il 730 con il credito d'imposta

Il frontaliere deve compilare la dichiarazione dei redditi italiana (730) riportando il reddito lordo estero (quello dichiarato in Svizzera prima della franchigia) nel quadro E. Nel quadro CE, indica il credito d'imposta, che corrisponde alle imposte svizzere effettivamente versate: imposta alla fonte e contributi AVS/AI/IPG (5.3%), più AD/AC (1.1%), LAINF (0.7–1.5%). Non è sufficiente indicare solo la franchigia: è necessario documentare l'intera struttura reddituale e supportare il credito con certificazioni svizzere.

Documentazione necessaria e scadenze critiche

La documentazione essenziale include: certificato di reddito svizzero (emesso dal datore di lavoro svizzero, simile al CUD italiano), estratto conto contributivo AVS/AI per verificare i contributi versati, dichiarazione svizzera Steuererklärung (facoltativa se le ritenute coprono il debito, ma consigliabile per documentare il credito). Le scadenze sono: il 730 italiano va presentato entro il 30 giugno dell'anno seguente (per il reddito 2025, scadenza 30 giugno 2026); la dichiarazione svizzera, ove obbligatoria, segue i tempi cantonali ticinesi (solitamente marzo–aprile); i ristorni del credito d'imposta italiano arrivano in genere tra 60–120 giorni dopo l'elaborazione dell'Agenzia delle Entrate.

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Frequently Asked Questions

What is the difference between old and new frontiersmen in 2026?: Old frontier workers (already in service before 17 July 2023) are entitled to an exemption of €7,500 per year on a transitional basis until 31 December 2033. New frontier workers are entitled to a deductible of €10,000 per year, with no specified time limit. Both benefit from the exemption in the calculation of the Swiss source tax and the tax credit in the Italian 730. The greater exemption for new frontier workers translates into a reduction in the Italian tax base, with tax savings effects.
How it works the tax credit: The tax credit is reported in the EC framework of the Italian declaration 730. The amount corresponds to the Swiss taxes actually paid: source tax and AVS/AI/IPG contributions (5.3%), plus AD/AC (1.1%), LAINF (0.7–1.5%). The Revenue Agency compares the credit with the personal income tax due in Italy according to the progressive rates (23–43%). If the Swiss taxes exceed the Italian personal income tax, the frontier worker receives a refund; if they are insufficient, he pays an adjustment.
Is the source tax withheld only in Switzerland or even in Italy?: Income tax at source is only withheld in Switzerland. Italy does not apply a double withholding tax thanks to the Double Taxation Convention signed on 9 December 1976. The border worker completes the Italian 730 to recover the tax differences and obtain the tax credit, thus avoiding double taxation on the same income base.
Which health insurance should I choose as a border worker with G Leave?: The border worker with Permit G has the right of option between the Swiss health insurance (LAMal) and the Italian one. LAMal offers adult deductibles between CHF 300 and CHF 2,500. The choice depends on the personal situation, the annual premium costs, the need for medical coverage in Switzerland or Italy and the overall taxation. Many frontier workers choose LAMal for a wider coverage in Switzerland.
When does the transitional regime for old border workers expire?: The transitional regime for old frontier workers (exemption €7,500) is valid from 1 January 2024 to 31 December 2033 (10 years). After 2033, the deductible could return to €10,000 for all border crossers, or follow other regulatory updates not yet specified by official announcements. It is advisable to monitor any new bilateral Italy-Switzerland agreements in the years prior to 2033.