How do rebates to Italian border municipalities work? (cross-border guide)
Answered with official sources — Tax and withholding
Updated 11 August 2026
Answer
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% source: 23/12/2020 Agreement art. 9. Canton Ticino collects, transfers to the Confederation which remits to the Italian MEF, which distributes across 180 municipalities by number of cross-border residents. Municipalities use rebates for infrastructure, transport and social works. For «new» cross-border workers there is no rebate: Italy taxes directly. The beneficiary list is Annex 1 of Decree 10 October 2023 source: DM 10/10/2023, Italian MEF.
Official sources
Other questions on this topic
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- Where can I find a complete, up-to-date guide to cross-border worker taxation for 2026?
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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.