Smart Working for Cross-Border Workers: New Rules for 2026

Context

TL;DR

• The tax rules on smart working for cross-border workers became permanent in 2026
• Since 1 January 2024, cross-border workers may work from their home in Italy for up to 25% of their working time without losing cross-border worker tax status
• Above 25%, the cross-border worker status under the tax agreement changes and taxation must be checked case by case

Key facts

• Tax limit: 25% of working time from home in Italy (protocol amending the cross-border workers agreement, in force since 9 February 2026 and applicable since 1 January 2024)
• Tax regime change: above 25% the cross-border worker status under the agreement changes; taxation must be checked case by case
• Permit required: G permit for cross-border workers
• Annual workdays: 220 working days per year
• Remote workdays: about 55 days (25%)
• Social security: a threshold separate from tax: below 25% the ordinary rules of Regulation (EC) No 883/2004 apply (insurance in the employer's state); between 25% and 49.9% the worker stays insured in Switzerland only with an A1 certificate requested by the employer under the multilateral framework agreement on cross-border telework (for Italy since 1 January 2024)
• Tax implications: above 25%, verify the tax treatment case by case
• Employer responsibility: in Ticino, if employment ends during the year, certify on the worker's request the telework days already worked (art. 5a of the Ticino withholding tax regulation); telework days are not among the data of the automatic exchange with Italy (art. 7 of the 2020 agreement)
• Tracking system: recommended to document remote workdays

Smart Working for Cross-Border Workers: What's Changing in 2026

In recent years, the topic of smart working for cross-border workers has taken center stage in the economic discussions between Italy and Switzerland. On 9 February 2026 the protocol amending the 2020 agreement on the taxation of cross-border workers entered into force (ratified in Italy by Law No. 217 of 29 December 2025): the home-office rules applied provisionally since 1 January 2024 are now permanent.

Under the protocol, cross-border workers can work up to 25% of their working time from their home in Italy without any change to the applicable tax rules or to their cross-border worker status. The 40% often quoted applied only to the transitional arrangement from 1 February to 31 December 2023, for contracts that provided for it: since 2024 the threshold is 25%. Working from home beyond 25% changes the cross-border worker status under the agreement, with tax consequences to be checked case by case.

The new rules apply to workers holding a G permit, who daily cross borders like Brogeda, Gaggiolo, and Ponte Tresa but seek greater workplace flexibility. For instance, a cross-border worker with 220 working days per year can work from home for about 55 days (25%) without altering their tax regime. Beyond this threshold, the tax consequences should be checked case by case.

Operational details

Practical and Tax Implications: What You Need to Know

For cross-border workers opting for smart working, it's essential to adhere to a few key rules. The 25% tax threshold is calculated annually, so keeping a detailed record of workdays spent in Italy and Switzerland is crucial. This helps prevent discrepancies during potential tax audits by Italian or Swiss authorities.

Neither the protocol nor the 2020 agreement requires the employer to report individual telework days to the Italian tax authorities: the automatic exchange of information under art. 7 of the agreement runs between tax authorities, from the canton to the Agenzia delle Entrate, and covers personal details, gross salary, social contributions and withholding tax. In Ticino, however, if employment ends during the year and the worker asks, the employer must certify the telework days already worked that year (art. 5a of the Ticino withholding tax regulation). A reliable tracking system, shared with the employer, helps avoid bureaucratic disputes. If the 25% tax threshold is exceeded, the tax treatment must be reviewed; social security contributions follow the separate framework-agreement threshold instead: they move to the Italian system from 50% telework, or already from 25% if the employer has not requested an A1 certificate.

A practical example clarifies the situation: Andrea, a resident of Varese, works for a company in Lugano. If Andrea works from home one day a week (about 20% of working time), he stays below the 25% tax threshold, about 55 days out of 220; two days a week (40%) would exceed it. Additionally, it's advisable to check the impact on INPS social security contributions and on taxation in Italy.

Key points

Practical Tips for Cross-Border Workers in Smart Working

💡 To avoid tax issues, it's essential to use a system to track workdays. This could include digital tools provided by your employer or a simple personal logbook. Additionally, always check your net salary to assess the impact of any tax changes.

⚠️ Keep in mind that exceeding the 25% tax threshold could result in higher taxation; social insurance, including pension and health coverage, changes only beyond the social security thresholds (25% without an A1 certificate, 50% with the framework agreement). For a detailed analysis of your situation, consult our paycheck simulator and health insurance comparison tool.

Finally, remember that regulations may vary depending on your municipality of residence. Use our interactive border municipality map to discover the applicable tax rates in your area. Stay informed on these critical topics by following our analyses and guides on Frontaliere Ticino.

Sources: Swiss Federal Council, press release of 13 February 2026 on the entry into force of the protocol (https://www.admin.ch/en/newnsb/KIyFJwwqspqaOcHDaT7u0); Fisco Oggi (Agenzia delle Entrate), ratification by Law No. 217 of 29 December 2025 (https://www.fiscooggi.it/portale/-/accordo-frontalieri-italia-svizzera-ratificato-l-aggiornamento-sul-telelavoro); Italian Ministry of Economy and Finance, release of 28 November 2023 on the 25% rule and the 2023 transitional arrangement (https://www.mef.gov.it/inevidenza/Frontalieri-accordo-Italia-Svizzera-telelavoro-fino-al-25-dal-1-gennaio-2024/); FSIO, Telework (https://www.bsv.admin.ch/de/telearbeit); text of the amending protocol (https://www.newsd.admin.ch/newsd/message/attachments/88035.pdf); Canton Ticino, DFE, press release of 13 January 2025 on the certificate of telework days (https://www4.ti.ch/tich/area-media/comunicati/dettaglio-comunicato?NEWS_ID=247871); Ticino tax administration, automatic exchange of information (https://www4.ti.ch/fileadmin/DFE/DC/DOC-IF/nuovo_accordo/Scambio_automatico_di_informazioni_CH-I.pdf).