How does the €10,000 IRPEF exemption work for cross-border workers?
Answered with official sources — Tax and withholding
Answer
The exemption comes from art. 1 para. 175 of Italian Law 147/2013, with the limit set by art. 4 of Law 83/2023: the exempt share of employment income earned abroad in a border zone or neighbouring country, continuously and as the sole object of the employment relationship, is €10,000 source: Normattiva, Law 83/2023 art. 4; from 2027 Legislative Decree 117/2026 art. 217. The amount applies from tax year 2024; it was €7,500 before. It covers all cross-border workers, not only those working in Switzerland, but it matters only if the income is taxed in Italy. With several incomes the total exempt share stays €10,000. In section RC enter code 4 in column 1 and the exempt share in line RC5 column 1 source: Agenzia Entrate, Redditi PF 2026 instructions.
Official sources
5- normattiva.itwww.normattiva.it/uri-res/N2Ls?urn:nir:stato:legge:2023-06-13;83
- agenziaentrate.gov.itwww.agenziaentrate.gov.it/portale/documents/20143/5476618/Circolare+Smart+working+e+Frontalieri+18+ago+2023.pdf/988122df-912b-afd1-8942-c2b20f0ab64c
- gazzettaufficiale.itwww.gazzettaufficiale.it/eli/gu/2026/07/03/152/so/26/sg/pdf
- agenziaentrate.gov.itwww.agenziaentrate.gov.it/portale/documents/d/guest/pf1_istruzioni_2026_agg-28-05-2026
- infoprecompilata.agenziaentrate.gov.itinfoprecompilata.agenziaentrate.gov.it/portale/quadro-rc
Other questions on this topic
- Where can I find a complete, up-to-date guide to cross-border worker taxation for 2026?
The Italy-Switzerland Agreement of 23/12/2020, in force since 17/07/2023, applicable from 1 January 2024 and ratified by Italian Law 83/2023, sets out two regimes: 'old' cross-border workers (Italian residents who meet art. 9, having…
- Does getting married or having children change the taxes I pay as a cross-border worker?
Yes, but the effect depends on your regime. For 'old' cross-border workers (taxed only in Switzerland), marital status and children affect which withholding-tax table the employer applies (single-earner married, dual-earner married, with dependent children).
- What are the 2026 withholding tax rates in Ticino?
Canton Ticino publishes yearly withholding-tax tables for singles (A), married single-earner (B), married dual-earner (C), single-parent (H) and minors with multiple employers (L). Rates are progressive and include cantonal, municipal and federal direct tax (IFD).
- How does withholding tax change for cross-border workers in Ticino from 2026?
The CH-IT cross-border agreement of 23/12/2020 entered into force on 17/07/2023 and has applied since 1 January 2024; Italy ratified it with Law 13 June 2023 No. 83. «New» cross-border workers are those covered by art. 2 of the Agreement who do not fall under art. 9.
- What is the tax difference between «old» and «new» cross-border workers?
The watershed is 17 July 2023, the Agreement's entry into force. «Old» workers (employed in Ticino, Grigioni or Valais on 17/07/2023, or between 31/12/2018 and that date, and residing in a municipality on the official list) remain taxed…
- How do rebates to Italian border municipalities work?
The 2020 Agreement provides that each of the cantons of Grigioni, Ticino and Valais pays 40% of the gross tax on art. 9 cross-border workers, for tax years up to the one ending on 31/12/2033.
- Is the Swiss 13th-month bonus included in the Italian tax return?
Yes. For the new cross-border worker the 13th-month bonus is employment income under TUIR art. 51 and must be added to the IRPEF tax base in section RC.
- Does the 20 km distance from the border affect my cross-border tax status?
The status requires residence in a municipality on the official list, whose territory falls at least partly within the 20 km zone, work in the cantons of GR, TI or VS, and returning home in principle daily, with a tolerance of 45 days a year for work reasons.