What is the tax difference between «old» and «new» cross-border workers?
Answered with official sources — Tax and withholding
Updated 11 August 2026
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 between 31/12/2018 and 17/07/2023 and residing within 20 km of the border) remain taxed only in Switzerland; Canton Ticino pays 38.8% of the revenue back to Italian border municipalities every year until 2033 source: Agreement art. 9 transitional. «New» workers pay Swiss withholding but declare full income in Italy with a foreign tax credit up to 80%. They apply the IRPEF exemption (€10,000 in 2026) and the healthcare deduction (€3,000) source: Italian Law 13/06/2023 No. 83 art. 3. Effective rates differ substantially.
Official sources
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Other questions on this topic
- 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?
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 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).
- How do I compute the tax credit on Swiss tax already paid?
Italian TUIR art. 165 and the CH-IT Convention of 1976 govern the foreign-tax credit. The new cross-border worker adds to the IRPEF tax base the Swiss gross income converted at the yearly ECB average rate, applies IRPEF and regional…
- Are Swiss 2nd pillar buy-ins deductible in Italy?
Voluntary buy-ins to the Swiss 2nd pillar (LPP Einkauf) are only partially deductible for the new cross-border worker: Italian TUIR art. 10 does not expressly allow LPP contributions exceeding the mandatory minimum as deductible charges.
- What is the €3,000 flat healthcare deduction for cross-border workers?
Italian budget law 2024 art. 1 para. 175 and L. 83/2023 art. 5 allow new cross-border workers to deduct a flat €3,000 from taxable income for mandatory Swiss health contributions (LAMal and LAINF).
- Which sections of Italian Redditi PF 2026 must a new cross-border worker fill?
The new cross-border worker must fill at least: section RC (foreign employment income, code 4), section CE I-A (foreign tax credit), section RW (tax monitoring of Swiss bank accounts and 2nd pillar over €15,000), section RP for deductions…
- How does the €10,000 IRPEF exemption work for new cross-border workers?
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. The exemption was €10,000 in 2024 and is confirmed for tax year 2026. It cannot be combined with the inbound-workers regime.
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.