What is the tax difference between «old» and «new» cross-border workers?
Answered with official sources — Tax and withholding
Answer
The watershed is 17 July 2023, the Agreement's entry into force source: Fedlex SR 0.642.045.43. «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 only in Switzerland; each of the cantons of Ticino, Grigioni and Valais pays Italy 40% of the gross tax on these workers, through tax year 2033 source: Agreement art. 9. «New» workers pay at most 80% of the ordinary Swiss withholding tax and declare the income in Italy, with a credit for the Swiss tax up to the proportional IRPEF share. They apply the €10,000 IRPEF exemption source: Law 83/2023 art. 4; from 2027 Legislative Decree 117/2026 art. 217. Effective rates differ substantially.
Official sources
2Other questions on this topic
- 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.
- How do I compute the tax credit on Swiss tax already paid?
Italian TUIR art. 165 (from 2027 art. 185 Legislative Decree 117/2026) and the CH-IT Convention of 1976 govern the foreign-tax credit.
- Are Swiss 2nd pillar buy-ins deductible in Italy?
The Italian tax treatment of a Swiss 2nd-pillar buy-in or voluntary contribution is not automatic: it must be checked against the type of contribution, tax year and supporting documents; a voluntary buy-in should not be treated as…
- Is there a €3,000 flat healthcare deduction for cross-border workers?
No, it does not appear in the rules on cross-border workers. Art. 5 of Italian Law 83/2023 (from 2027 art. 218 Legislative Decree 117/2026) concerns mandatory contributions to sector early-retirement schemes, deductible in the documented amount.
- Which sections of Italian Redditi PF 2026 must a new cross-border worker fill?
The new cross-border worker fills at least section RC (foreign employment income, code 4, with the exempt share in line RC5) and section CE (foreign tax credit).
- How does the €10,000 IRPEF exemption work for cross-border workers?
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…