Teleworking for border workers: new smart working rules (cross-border guide)

Context

In a nutshell

• Smart working maximum 25% of the time so as not to lose status
• Teleworking hours considered as carried out in Switzerland
• Maximum 45 days per year of non-return to home
• Validity for those living within 20 km of the border

Key facts

• What: New teleworking and home return rules
• When: Law 217/2025 published in January 2026
• Where: Ticino, Graubünden, Valais (CH); Lombardy, Piedmont, VdA, Bolzano (IT)
• Who: Cross-border employees
• Amount: Limit 25% of working hours

Law 217/2025, published in the Official Gazette in January 2026, implemented the protocol signed in 2024 that modifies the previous 2020 agreement between Italy and Switzerland. This legislation introduces significant changes for employees operating between the two countries, precisely defining the limits within which it is possible to carry out work from home without altering their legal and tax position.

# Territorial scope

The new provisions do not apply to all workers, but are limited to those residing within 20 km of the state border. As far as the Swiss territory is concerned, the border area includes the Cantons of Ticino, Graubünden and Valais. On the Italian side, the agreement applies to the Regions of Lombardy, Piedmont, Valle d 'Aosta and the Autonomous Province of Bolzano. Those who operate within these perimeters can now benefit from the flexibility

Operational details

Tax and operational implications

The main innovation of the new agreement lies in the tax treatment of teleworking hours. According to the regulations, the hours worked remotely, as long as they are within the 25% threshold, are considered in all respects as being carried out in Switzerland. This means that the salaries and other remuneration received for the activity carried out at home in Italy remain taxable in Switzerland, avoiding the worker having to change their tax regime or lose the benefits linked to border status.

Scenario analysis: the 25% limit

To understand the practical application of this threshold, it is useful to analyse a concrete case predicted by the source. An Italian worker with a full-time contract at a Swiss company who decides to do smart working one day a week is perfectly within the limit of 25% of working time. In this scenario, the employee does not lose the status of border worker and the entire salary continues to be subject to Swiss source tax, without the domiciliary activity shifting taxability to Italy.

In addition to smart working, the protocol update introduces an important exception for professional reasons. The worker may now not return daily to his domicile in the State of residence for a maximum period of 45 days during a calendar year. It is important to point out that in this

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

Practical Guide to the Application

For workers intending to take advantage of these new telework opportunities, it is necessary to follow some organizational steps to ensure compliance with fiscal and contractual requirements. Since the 25% limit is calculated on an annual basis, time management becomes the key element to avoid compromising the status of frontaliere.

Checklist for Monitoring Telework

• Verify membership in the frontier area (within 20 km of the border).
• Calculate the total annual working hours planned by the contract.
• Define with the Swiss employer the maximum number of hours or days of smart working, ensuring it does not exceed 25% of the total.
• Maintain a precise record of days not returning home to avoid exceeding the 45 annual days allowed.
• Exclude from the count of 45 days sick leave and vacation periods.

The adoption of these precautions avoids the Agenzia delle Entrate or Swiss authorities contesting the frontaliere status. Once the 25% threshold is exceeded, the activity carried out in Italy may no longer be considered as a service provided in Switzerland, with potential repercussions on the taxation of income. It is therefore advisable that the worker coordinates the smart working agreement with the HR office of the company to formalize the execution mode of the service.

For those who wish to plan the impact of these work hours on their pay slip or verify how the payroll tax affects the net monthly income, it is useful to use precise calculation tools. Knowing exactly how much remains in task after Swiss deductions allows better organization of costs related to telework, such as electricity at home or internet connection. For a detailed calculation of the net salary, you can use our calculator.

Source: pmi.it