What is the difference between old and new border crossers in the calculation of the 2026 tax credit?

Old frontier workers (employed before 17 July 2023) have an exemption of €7,500 on Italian taxable income, on a transitional basis until 2033. New frontier workers (starting employment after 17 July 2023) benefit from a deductible of €10,000. Both apply the same personal income tax rates (23%, 35%, 43%) on residual income after deductible.

How do I calculate the tax credit to be included in the EC framework of the model 730?

The credit corresponds to the total amount of tax already paid in Switzerland (source tax, AVS/AI/IPG contributions at 5.3%, unemployment, accident insurance). Subtract the deductible from the Swiss gross income, apply the Italian personal income tax rate to the result to obtain the Italian tax due. If the Swiss total exceeds the Italian IRPEF, you are entitled to a refund; otherwise the credit offsets the tax.

By when do I need to file Form 730 to claim the 2026 tax credit?

The ordinary deadline is 31 May 2026 for direct submission to the Revenue Agency. If you use a CAF or accountant, the term extends until November 30, 2026 if submitted as a tax substitute. Keep Swiss tax documents for at least 5 years.

What happens if the tax paid in Switzerland is higher than the Italian personal income tax?

Italy recognizes the tax credit: if Swiss taxes exceed the IRPEF calculated in Italy, you are entitled to a refund for the difference. This is the main advantage of the new agreement for singles: it avoids double taxation and can generate a direct refund by September 2026 on the IBAN indicated in the declaration.

Is the G permit required to take advantage of the tax credit?

Yes. To access the tax credit scheme under the new 2024 agreement, the border worker must reside in Italy and work in Switzerland with a G permit. The copy of the residence and employment permit is mandatory documentation to be attached to the declaration in form 730.

2026 Tax Credit: Single Border Guide (cross-border guide)

Di Marco Ferrari · Published on 20 August 2026

Tax advisor reviewing income declaration for a single border worker with Ticino mountains in background

Single frontier workers: how to calculate the 2026 tax credit, €7,500-€10,000 deductible, IRPEF rates, compilation of the EC 730 framework and refunds by May.

Context

In a nutshell

From 1 January 2024 the new CH-IT agreement avoids double taxation on Swiss paychecks
Old frontier workers: deductible €7,500; new: €10,000 under the transitional regime until 2033
Income tax applied: 23% up to €28,000, 35% €28–€50k, 43% over €50k on residual income
EC Framework of the Italian 730 is the tool for declaring the tax credit

Key facts

What: Tax credit to avoid double taxation on income from cross-border employment
When: New agreement in force from 1 January 2024, 2026 tax returns 2025
Where: Form 730 EC framework at the Italian Revenue Agency
Who: Border workers with G or B permit residing in Italy, employed in Switzerland
Applicable deductible: €7,500 (old frontier workers before 17/7/2023), €10,000 (new)
Regulatory ratification: Law 83 of 13 June 2023 (Italy); CH-IT Convention of 9 December 1976

As of 1 January 2024, the new agreement between Switzerland and Italy introduced the tax credit as the main instrument to avoid double taxation of single border workers. Switzerland withholds the tax directly from the paycheck through the tax at source, while Italy recognises this payment through form 730, in the EC framework.

For the single border worker, the mechanism ensures that no tax is paid twice on the same income. The system works in parallel: income is taxed in Switzerland, declared in Italy, and the

Operational details

Comparison: double taxation avoided in the new regime

The main benefit introduced by the new 2024 agreement is the elimination of double taxation. In the previous regime, a single border worker paid: 1. Tax at source in Switzerland (withholding on paycheck) 2. Income tax in Italy on declared income, often without any recognized credit or with narrow margins

Today the system works with bilateral transparency: Switzerland taxes income at source, Italy declares it in 730 and automatically recognizes the credit for taxes already paid. For the single, this translates into concrete savings when the Swiss tax burden exceeds the Italian one.

Calculation scenario: single border crossing with an income of €50,000

Assuming a single frontier worker ("old" category with deductible €7,500) with annual gross income from work equal to an equivalent of about €50,000, already taxed in Switzerland by source tax (including AVS/AI/IPG withholdings at 5.3%, unemployment and accident insurance contributions):

Step 1 – Deductible application : €50,000 − €7,500 = €42,500 taxable income in Italy

Step 2 – Income tax calculation by steps:

First echelon (€28,000 × 23%) = €6,440
Second tier ((€42,500 − €28,000) = €14,500 × 35%) = €5,075
Total calculated personal income tax: €11,515

Step 3 – Comparison with tax credit: If in Switzerland tax has already been paid at source, AVS and others

Useful tools for your case

To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.

Key points

Compiling the 730/2026 model: step-by-step procedure

The single frontier must compile the Italian 730 model for the 2025 tax year according to the deadlines set by INPS and Agenzia delle Entrate. Here are the concrete steps:

Step 1 – Document collection:

Official income certification from the Swiss employer (Certification of income from dependent work in Switzerland)
Receipts and tax returns already paid in Switzerland (withholding tax, AVS/AI/IPG contributions at 5.3%, injury contributions)
Copy of the G permit for residence and occupation
Italian tax code
IBAN for the refund, if due

Step 2 – Calculation of taxable income in Italy:

Gross income earned in Switzerland converted to euros (at the annual average exchange rate in force)
Deduction of the applicable exemption (€7,500 for old frontiersmen, €10,000 for new ones)
Final result = taxable income in Italy

Step 3 – Completion of the CE box of the 730 model: The CE box is dedicated to foreign-source income and tax credit to avoid double taxation. The single frontier must enter:

Gross income from dependent work from Swiss source
Total amount of withholding tax and contributions paid in Switzerland
Indication of the source country (Switzerland)
Amount of tax credit calculated (equal to the tax paid in Switzerland)

Step 4 – Telematic submission and conservation:

Telematic submission through CAF, accountant, or directly on the Agenzia delle Entrate website
Conservation of the copy of the declaration and Swiss supporting documents for at least 5 years
Verification of the receipt of receipt by the Agenzia

…

Frequently Asked Questions

What is the difference between old and new border crossers in the calculation of the 2026 tax credit?: Old frontier workers (employed before 17 July 2023) have an exemption of €7,500 on Italian taxable income, on a transitional basis until 2033. New frontier workers (starting employment after 17 July 2023) benefit from a deductible of €10,000. Both apply the same personal income tax rates (23%, 35%, 43%) on residual income after deductible.
How do I calculate the tax credit to be included in the EC framework of the model 730?: The credit corresponds to the total amount of tax already paid in Switzerland (source tax, AVS/AI/IPG contributions at 5.3%, unemployment, accident insurance). Subtract the deductible from the Swiss gross income, apply the Italian personal income tax rate to the result to obtain the Italian tax due. If the Swiss total exceeds the Italian IRPEF, you are entitled to a refund; otherwise the credit offsets the tax.
By when do I need to file Form 730 to claim the 2026 tax credit?: The ordinary deadline is 31 May 2026 for direct submission to the Revenue Agency. If you use a CAF or accountant, the term extends until November 30, 2026 if submitted as a tax substitute. Keep Swiss tax documents for at least 5 years.
What happens if the tax paid in Switzerland is higher than the Italian personal income tax?: Italy recognizes the tax credit: if Swiss taxes exceed the IRPEF calculated in Italy, you are entitled to a refund for the difference. This is the main advantage of the new agreement for singles: it avoids double taxation and can generate a direct refund by September 2026 on the IBAN indicated in the declaration.
Is the G permit required to take advantage of the tax credit?: Yes. To access the tax credit scheme under the new 2024 agreement, the border worker must reside in Italy and work in Switzerland with a G permit. The copy of the residence and employment permit is mandatory documentation to be attached to the declaration in form 730.