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 March 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

Di Marco Ferrari · Published on 27 August 2026 · Updated on 25 September 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: March 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 March 9, 1976, remains the regulatory foundation, but the more recent agreement introduces more favorable mechanisms for cross-border workers.

Tax allowance for existing and new cross-border workers

For cross-border workers already holding status before July 17, 2023, the tax allowance is €7,500 per year, applied under transitional regime until December 31, 2033. For new cross-border workers (from July 17, 2023 onwards), the tax allowance increases to €10,000 per year, with no specified time limit. This amount represents the non-taxable income in Switzerland in calculating source tax and is considered in section CE of the Italian tax declaration for the tax credit.

How source tax and tax credit work

Source tax on employment income is withheld exclusively by Switzerland. The Swiss employer automatically remits tax based on mandatory contributions: AVS/AI/IPG at 5.3% charged to the employee, plus AD/AC at 1.1% (with cap CHF 148,200), LAINF between 0.7% and 1.5%. Italy, based on the Convention to avoid double taxation, does not apply additional withholding on the same income base. The cross-border worker recovers the excess tax burden through the tax credit in section CE of the tax return Italian (730). If Swiss taxes exceed Italian tax (IRPEF), they receive a refund; if they are insufficient, they pay a balance adjustment.

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, 33% 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.

Differences between old and new cross-border workers

The difference of €2,500 between the two exemptions (€7,500 vs €10,000) is not merely an administrative detail: it represents a reduction in the Italian taxable base calculable on average IRPEF rates (approximately 30–35%). For old cross-border workers, the transitional regime expires on 31 December 2033. After that date, the regulation could be subject to modifications, currently not specified in new communicated agreements. New cross-border workers, on the other hand, benefit from the €10,000 exemption without duration limits declared so far, offering greater regulatory stability.

Mandatory Swiss contributions and LAMal

In addition to withholding tax, the cross-border worker pays contributions AVS/AI/IPG at 5.3% of income, AD/AC at 1.1% (on income up to CHF 148,200), LAINF between 0.7% and 1.5%. The second pillar (LPP) varies between 7% and 18% depending on age from 25 years onwards. For health insurance (LAMal), the cross-border worker with Permit G has the right of choice: they can insure themselves in Switzerland with adult deductibles between CHF 300 and CHF 2,500, or in Italy. This choice impacts the total tax burden and health coverage.

Key points

How to fill out the 730 with the tax credit

The cross-border worker must complete the Italian tax return (730) reporting the gross foreign income (that declared in Switzerland before the exemption) in part E. In part CE, it indicates the tax credit, which corresponds to the Swiss taxes actually paid: withholding tax and AVS/AI/IPG contributions (5.3%), plus AD/AC (1.1%), LAINF (0.7–1.5%). It is not enough to simply indicate the deductible: it is necessary to document the entire income structure and support the credit with Swiss certifications.

Necessary documentation and critical deadlines

The essential documentation includes: Swiss income certificate (issued by the Swiss employer, similar to the Italian CUD), AVS/AI contribution account statement to verify the contributions paid, Swiss Steuererklärung declaration (optional if the withholdings cover the debt, but advisable to document the credit). The deadlines are: the Italian 730 must be presented by 30 June of the following year (for 2025 income, deadline 30 June 2026); the Swiss declaration, where mandatory, follows the Ticino cantonal times (usually March–April); Italian tax credit refunds typically arrive between 60–120 days after processing by the Revenue Agency.

Calculation tools and practical support

To estimate the actual tax burden with the applied deductible and the recovered tax credit, it is essential to use a simulation tool. The Ticino Frontaliere platform provides a calculator which allows you to enter the Swiss gross income, the cross-border worker category (old/new), the mandatory Swiss contributions (AVS, AD, LAINF, LPP) and generates a net estimate of the pay slip and the Italian tax debt/credit. For questions about the procedure, you can contact the Revenue Agency (offices in the provinces of Como, Varese, Lecco) or the affiliated CAFs. In Switzerland, the canton of Ticino (DFE – Department of Finance and Economy) and the Federal Tax Administration (AFC) provide support on Swiss contributions and declarations. A complementary tool is the permission comparator to check whether Permit G remains the optimal choice compared to Permit B of residence.

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 March 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.