Cross-border retraining 2026: focus on the family

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.

Salary in Ticino is subject to compulsory deductions: AHV/IV/EO 5.3%, AD/AC 1.1%, UVG 0.7–1.5%, BVG 7–18% depending on age. These reductions feed into the Swiss pension (AHV) and the supplementary fund (BVG), which are then coordinated with the Italian INPS for the final calculation of the pension.

Retraining Scenario: The Net Impact on Payroll

A cross-border commuter who increases his salary by CHF +12,000/year (20% increase) through retraining sees a net increase of around CHF +3,500 per year after taxation, thanks to the exemption. This gain is not eroded by double taxation — the New Agreement guarantees this. At the same time, he accumulates CHF +4,400 in AHV-BVG, which means a higher pension pension at the age of 65.

Dependent children amplify the advantage: the Italian IRPEF grants deductions for each child (about €1,050 each if minors), and the final rebate or adjustment settles in favor of the family.

Role of the KVG in the redevelopment decision

An often forgotten aspect: the cross-border commuter G permit has diritto d'opzione tra LAMal svizzera and Italian insurance. With the retraining and increase in income, this choice becomes strategic. If the cross-border commuter opts for KVG Switzerland (with a deductible EUR 300–2,500), the premiums are deducted from the Swiss gross salary — and further reduce the withholding tax. If he stays in Italy (INPS-coordinated insurance with EEA), the premiums are paid separately, but he accesses Italian benefits (maternity, unemployment, family allowances).

The requalification is therefore not just a salary boost, but an opportunity to optimize the insurance mix: LAMal for health protection, LPP for retirement, and INPS coordination for family benefits.

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, 33% 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 March 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.

In Italy, on the basis of the income declared in 730, the cross-border worker pays INPS contributions at the end of the year. According to the 1976 Italian-Swiss Convention, those who work in Switzerland pay ONLY AHV (not INPS). However, the coordination between the two systems calculates the final pension as a "weighted sum" of the years in the Swiss system and in the Italian system.

With retraining, the salary increases, AHV contributions increase, and by the time of retirement, the cross-border commuter will have a higher capital accumulated in BVG and a more generous AHV pension.

Dependent children: the additional deductions that matter

If the cross-border worker has minor children, the Italian IRPEF grants additional deductions: deduction for dependent spouse (about €800), deductions for children (about €1,050 per minor child). These deductions apply directly to the calculated IRPEF and are not proportional to income. This means that if a cross-border commuter with two children has IRPEF of €8,000 gross, family deductions of about €2,100 reduce it to €5,900 net due.

With retraining, income increases (and therefore nominal income tax rises), but the amount of deductions remains stable. As a result, the net gain from retraining is amplified: the family benefits proportionally more than it pays in taxes. This effect is one of the least communicated advantages of the New Cross-Border Worker Agreement for parents.

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.

7. Wait for the outcome: rebate or adjustment If the Swiss tax was higher than the Italian tax due, you will receive a refund by bank transfer (usually 3–6 months after submission). If, on the other hand, Italy calculates a debt that is higher than the credit, it pays an adjustment via the F24 form.

The resources available to learn more

Frontaliere Ticino's guida al 730 e dichiarazione frontalieri explains the EC framework step by step with examples. To simulate the pension impact of retraining (how much your BVG fund grows), see the AVS-LPP-INPS e coordinamento section.

Next step: Use the calcolatore di stipendio netto today to visualize the concrete benefit of your retraining in 2026. If the estimated net is positive, proceed with confidence and contact an accountant specializing in cross-border commuters for the detailed plan of the 730 declaration.