What changes with the new 2026 cross-border-workers law?

For new fiscal cross-border workers, Switzerland applies 80% of its ordinary withholding rate; Italy taxes the income with a credit for Swiss tax. The 80% is not a revenue split between the two countries. Old cross-border workers who qualify under Article 9 retain exclusive Swiss taxation of the covered salary. Their regime does not automatically end in 2033 or 2034: 2033 is the final tax year of Swiss compensation payments to Italy. ESTV: https://www.estv.admin.ch/dam/it/sd-web/Zbr5Jb-40aYm/int-laender-it-faktenblatt-faqs-it.pdf

Who counts as a new cross-border worker under the New Agreement?

A new fiscal frontier worker meets the agreement’s definition but does not qualify under Article 9 through eligible work during 31 December 2018–17 July 2023. The definition requires residence in a municipality on the official 20 km list, work in Ticino, Graubünden or Valais and return home in principle daily. Changing employer alone does not determine the regime. https://www.estv.admin.ch/dam/it/sd-web/Zbr5Jb-40aYm/int-laender-it-faktenblatt-faqs-it.pdf

Is the EUR 10,000 allowance cumulative with other deductions?

Yes, the EUR 10,000 allowance on Swiss income for new cross-border workers is cumulative with standard Italian IRPEF deductions (medical expenses, mortgage interest, restructuring bonuses) and with the foreign tax credit. However, it does not reduce INPS contributions owed in Italy and is not deductible from regional or municipal IRPEF surcharges.

How much more will I pay compared to the old regime?

For a new cross-border worker earning CHF 70,000 gross, the extra tax vs the old regime is typically EUR 1,500–3,000 per year (2–4% of gross). The gap narrows for low incomes thanks to the EUR 10,000 allowance and widens for high Italian municipal IRPEF rates. Use the simulator 'simulazione-tasse-nuovi-frontalieri' on frontaliereticino.ch for an individual figure.

What happens to old cross-border workers after 2033?

Old cross-border workers who qualify under Article 9 retain exclusive Swiss taxation of the covered salary. Their regime does not automatically end in 2033 or 2034: 2033 is the final tax year of Swiss compensation payments to Italy. ESTV: https://www.estv.admin.ch/dam/it/sd-web/Zbr5Jb-40aYm/int-laender-it-faktenblatt-faqs-it.pdf

Does the new law apply to workers outside Ticino too?

Yes. The 2020 New Agreement applies to Italian cross-border workers in every border canton (Ticino, Grisons, Valais). Those working in Grisons or Valais under the new regime face identical rules: Swiss withholding tax, Italian IRPEF with the EUR 10,000 allowance, foreign tax credit. Ticino remains the canton with the largest Italian cross-border-worker population (over 74,000 in 2025), followed by Basel-Stadt and Geneva for French-speakers.

Does anything change for 13th-month and bonuses of new cross-border workers?

No. The 13th month and performance bonuses are taxed like the rest of gross Swiss income: withholding tax at payment and included in the Italian IRPEF base for new cross-border workers. The EUR 10,000 allowance applies to the total annual income (salary + 13th + bonuses) and cannot be split by line item. In the 730/Redditi return you report the total annual gross received.

Are 2nd-pillar LPP contributions deductible in Italy?

Distinguish mandatory LPP contributions from voluntary buy-ins and 3a payments. Check current Italian instructions using the salary certificate; a Swiss deduction does not establish Italian deductibility. ESTV FAQ 5.3 excludes subsequent ordinary assessment (TOU) for fiscal frontier workers covered by the Italy–Switzerland agreement. Other categories must check eligibility and procedure with the tax authority. https://www.estv.admin.ch/dam/it/sd-web/Zbr5Jb-40aYm/int-laender-it-faktenblatt-faqs-it.pdf

New Cross Border Agreement 2026 (cross-border guide)

New Cross Border Agreement 2026 — free tools and expert guides for cross-border workers (frontalieri) between Switzerland and Italy. Compare salaries, tax, LAMal health insurance, pensions, and cost of living in Ticino. Updated 2026.

Last updated: 23 April 2026

By Frontaliere Ticino Editorial Team

The new 2026 cross-border worker law — timeline and key points

Old-worker status requires work as a tax cross-border worker in Ticino, Graubünden or Valais between 31 December 2018 and 17 July 2023, residence in a municipality in the 20 km border zone and, in principle, daily return home. Swiss employment income remains taxable exclusively in Switzerland. The 2033 deadline ends the 40% compensation paid by Switzerland to Italy, not exclusive Swiss taxation. For new workers meeting the agreement’s residence and return requirements, Switzerland levies 80% of the ordinary withholding tax and Italy taxes the income with credit for Swiss tax. The 80% is not an allocation of income between countries. Residence outside the qualifying municipality zone does not automatically qualify for the reduced Swiss rate. Source: FTA agreement and FAQ.

What changes concretely in 2026

The agreement’s 45-day annual limit concerns nights without returning home for professional reasons, not a general telework allowance. Exceeding it loses tax cross-border status for that year. Remote-work rules must be checked separately. Source: FTA agreement and FAQ.

Tax table 2024 vs 2025 vs 2026 — typical salary

A net-pay comparison needs gross salary, social contributions, family circumstances, municipality of residence and documented tax status. An eligible old worker does not switch regimes in 2034. Compare years using identical inputs and each year’s applicable rates, without assuming an automatic saving from the hire date. Source: FTA agreement and FAQ.

Salary impact — worked example with two children

A new frontaliere, married, two children, CHF 80,000 gross, table C2: Ticino withholding ~CHF 4,800 (6%), social deductions CHF 12,000, Swiss net ~CHF 63,200. In Italy: taxable income ~€74,000 (0.95 exchange), minus €10,000 allowance and family deductions → gross IRPEF ~€16,000, tax credit ~€5,000 → residual IRPEF ~€11,000. Final annual net in euros ~€55,000. An old frontaliere with same parameters ~€63,000 net.

What to do now — checklist for new and old frontalieri

Keep contracts, salary certificates, tax records and evidence of residence and return home. Check historic status over 31 December 2018–17 July 2023; the latest contract date alone is insufficient. New workers should verify Italian filing and tax-credit requirements with an adviser. There is no automatic regime switch to plan for in 2033. Source: FTA agreement and FAQ. new-regime tax simulator

Sources: Swiss Federal Law on Cross-Border Taxation · Italian Revenue Agency circulars 2024-2026 · 2020 Italy-Switzerland tax agreement.

Frequently asked questions

What changes with the new 2026 cross-border-workers law?: For new fiscal cross-border workers, Switzerland applies 80% of its ordinary withholding rate; Italy taxes the income with a credit for Swiss tax. The 80% is not a revenue split between the two countries. Old cross-border workers who qualify under Article 9 retain exclusive Swiss taxation of the covered salary. Their regime does not automatically end in 2033 or 2034: 2033 is the final tax year of Swiss compensation payments to Italy. ESTV: https://www.estv.admin.ch/dam/it/sd-web/Zbr5Jb-40aYm/int-laender-it-faktenblatt-faqs-it.pdf
Who counts as a new cross-border worker under the New Agreement?: A new fiscal frontier worker meets the agreement’s definition but does not qualify under Article 9 through eligible work during 31 December 2018–17 July 2023. The definition requires residence in a municipality on the official 20 km list, work in Ticino, Graubünden or Valais and return home in principle daily. Changing employer alone does not determine the regime. https://www.estv.admin.ch/dam/it/sd-web/Zbr5Jb-40aYm/int-laender-it-faktenblatt-faqs-it.pdf
Is the EUR 10,000 allowance cumulative with other deductions?: Yes, the EUR 10,000 allowance on Swiss income for new cross-border workers is cumulative with standard Italian IRPEF deductions (medical expenses, mortgage interest, restructuring bonuses) and with the foreign tax credit. However, it does not reduce INPS contributions owed in Italy and is not deductible from regional or municipal IRPEF surcharges.
How much more will I pay compared to the old regime?: For a new cross-border worker earning CHF 70,000 gross, the extra tax vs the old regime is typically EUR 1,500–3,000 per year (2–4% of gross). The gap narrows for low incomes thanks to the EUR 10,000 allowance and widens for high Italian municipal IRPEF rates. Use the simulator 'simulazione-tasse-nuovi-frontalieri' on frontaliereticino.ch for an individual figure.
What happens to old cross-border workers after 2033?: Old cross-border workers who qualify under Article 9 retain exclusive Swiss taxation of the covered salary. Their regime does not automatically end in 2033 or 2034: 2033 is the final tax year of Swiss compensation payments to Italy. ESTV: https://www.estv.admin.ch/dam/it/sd-web/Zbr5Jb-40aYm/int-laender-it-faktenblatt-faqs-it.pdf