How does the €10,000 IRPEF exemption work for new cross-border workers?
Answered with official sources — Tax and withholding
Updated 11 August 2026
Answer
Italian Law 13/06/2023 No. 83 art. 4 excludes the first €10,000 of Swiss employment income from the IRPEF tax base for «new» cross-border workers source: Normattiva, L. 83/2023. The exemption was €10,000 in 2024 and is confirmed for tax year 2026 source: Agenzia Entrate Circular 4/E 2024. It cannot be combined with the inbound-workers regime. It applies only once even if the taxpayer has multiple Swiss employers. In the tax return it is reported in box RC on the foreign-income line (code 9); the RedditiPF 2026 software applies it automatically when country code is CH. The exemption stacks with the €3,000 flat healthcare deduction.
Official sources
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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 1 January 2024 and ratified by Italian Law 83/2023, sets out two regimes: 'old' cross-border workers (Italian residents already working in Switzerland before 17/07/2023) remain…
- 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?
From 1 January 2024 the new CH-IT cross-border agreement signed 23/12/2020 and ratified by Italian Law 13 June 2023 No. 83 is in force.
- 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 between 31/12/2018 and 17/07/2023 and residing within 20 km of the border) remain taxed only in Switzerland; Canton…
- How do rebates to Italian border municipalities work?
The 1974 CH-IT Agreement and the 2020 Agreement provide that Switzerland remits to Italian border municipalities (Lombardy, Piemonte) a share of withholding tax on «old» cross-border workers: 38.8% for 2024-2033, then 0%.
- Is the Swiss 13th-month bonus included in the Italian tax return?
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- Does the 20 km distance from the border affect my cross-border tax status?
The tax status of 'cross-border worker' requires residing in an Italian municipality whose territory falls, even partly, within 20 km as the crow flies from the Swiss border, plus returning to one's residence daily (or at least regularly).
The information on this page is for guidance only and does not replace personal advice from an accountant, lawyer or union office. Tax, social-security and permit rules change frequently: always verify with the official sources linked in each answer.