Cross-border retraining 2026: focus on the family (cross-border guide)

Context

In brief

• New Agreement from 1 January 2024: tax benefits for cross-border commuters who retrain
• Exemption €7,500 (old) or €10,000 (new) reduces the withholding tax burden
• Tax ONLY in Switzerland; Italy avoids double taxation with 730 credit
• Cross-border commuters G with children: KVG choice and simplified INPS-AHV coordination

Key Facts

• What: Professional retraining with tax benefits aimed at cross-border commuters with children
• When: New Agreement effective from 1 January 2024 (signed 23 December 2020)
• Where: Work in Ticino (Chiasso, Mendrisio, Lugano), residence Italy border
• Who: Cross-border commuters Permit G; Revenue Agency, AFC/ESTV, INPS, SECO coordinate
• Exemption: €7,500 (cross-border commuters from 17 July 2023) or €10,000 (new)
• Rates: AHV/IV/EO 5.3%, ALV/CA 1.1%, UVG 0.7–1.5%, BVG 7–18%

The New Cross-Border Commuter Agreement, which came into force on 1 January 2024, redesigns the tax regime for those who work in Switzerland and reside in Italy. For cross-border commuters with children who invest in education in 2026, this translates into concrete benefits: withholding tax reductions and simplification of Italian-Swiss coordination.

The key rule: withholding tax is ONLY withheld by Switzerland. Italy avoids double taxation thanks to the tax credit in the 730 form, where the cross-border commuter declares the Swiss net. "Old" cross-border commuters (already such as on 17 July 2023) are entitled to €7,500 annual exemption until 2033; "new" cross-border commuters access €10,000.

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Operational details

The cross-border worker who retrains must update his Italian tax return. The procedure is managed through the 730 model, which has a dedicated section (EC framework) for foreign income.

The EC declaration: a concrete procedure

1. Obtains salary certificate from Swiss payslip (tax withholding brochure) 2. Converts the SVG net to EUR at the average annual exchange rate of the fiscal year 3. Declares in the EC framework the "income from foreign employment" 4. The Revenue Agency calculates the IRPEF by scaling: 23% up to €28,000, 35% from €28,001 to €50,000, 43% over €50,000 5. Apply the tax credit (Swiss withholding tax already paid); if higher than the IRPEF due, the cross-border commuter obtains a refund; otherwise, he pays an adjustment

With the requalification that raises the salary, the IRPEF burden increases nominally, but the tax credit almost always compensates for it — especially if Switzerland has applied progressive rates. The Italy-Switzerland double taxation agreement of 9 December 1976 establishes that if the cross-border worker has paid more tax in Switzerland than he should in Italy, the surplus is refunded as a "refund" within a few months after the submission of the 730.

Increased income: how double contributions work

A critical aspect of retraining: it increases contributions to BOTH systems. In Switzerland, the employer pays AHV (approx. 5.3% gross), ALV/AC 1.1%, UVG 0.7–1.5%, and the employee pays BVG (7–18% depending on age, from the age of 25 onwards). These contributions build up the Swiss pension pension — the largest part of the future cross-border commuter's pension.

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Key points

Step-by-step checklist: how to concretely proceed in 2026

1. Check your status as a cross-border commuter Check whether you are "old" (already a cross-border commuter on 17 July 2023, €7,500 exemption) or "new" (€10,000 exemption). This info can be found on your SEM Administrative Decision or in the Permit G file. Download the document and keep it handy.

2. Choose the recognized retraining course Federal vocational education and training (apprenticeships, CAS courses, DAS) is automatically admitted. For private courses, check SECO recognition. Document the course: title, duration, provider, start and end date.

3. Simulate the tax impact before signing up Use the calcolatore di stipendio netto: enter current gross, estimated post-course increase, number of children → find out your expected net, Swiss withholding tax, Italian rebate/adjustment. Repeat the simulation with the expected final salary.

4. Tell the employer Inform about the course of study and the start date. If the course causes a work break, grant the study permit. If you increase the hours/tasks during the course, the employer must update the salary slip.

5. Gather documents for 730 Swiss pay slips (all months of the tax year), Swiss tax certificate, certificate of attendance of the course, copy of the G permit, possibly certificates of dependent children.

6. Declare new income in 730 By 31 May of the following year, rely on an accountant specialising in cross-border commuters (not all CAFs are familiar with the EC framework). It declares the Swiss net converted into EUR, highlights the tax credit, reports the increase in income due to requalification.

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