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

The 2020 Italy-Switzerland agreement (in force since 2024) ends fiscal exclusivity for new cross-border workers (hired from 17/07/2023): Switzerland keeps 80% of withholding tax revenue and Italy levies IRPEF with a EUR 10,000 allowance plus a foreign tax credit. Old cross-border workers stay under the pre-2024 regime until 2033. Fiscal ristorni to border municipalities are phased out.

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

Under the New Italy-Switzerland Agreement, a new cross-border worker is anyone hired on or after 17 July 2023 by a Swiss employer, residing in an Italian municipality within 20 km of the border, and returning home at least weekly. Transfers to a new Swiss employer after that date also qualify as new cross-border workers, even if the previous role began earlier.

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?

From 2034 the transitional regime ends and all cross-border workers are taxed under the New Agreement rules: Swiss withholding tax up to 80% and Italian IRPEF with the EUR 10,000 allowance and foreign tax credit. Anyone still in service will switch automatically. The fiscal ristorni to border municipalities will have been fully phased out by then.

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?

Yes. Mandatory LPP contributions withheld on the Swiss payslip are already excluded from the Swiss taxable base and must also be excluded from the income declared in Italy: report Swiss gross salary net of LPP, LAINF and AVS/AI/IPG. Voluntary 3rd-pillar-A contributions are not deductible in Italy per AdE circular 25/2024, but remain deductible in Switzerland in the Taxation Ordinaire Ultérieure (TOU) up to CHF 7,258 per year.

New Cross Border Agreement 2026 | Frontaliere Ticino

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: April 2026

By Frontaliere Ticino Editorial Team · Cross-border tax & pension specialists

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

The "new cross-border worker law" is the new Italy-Switzerland tax agreement signed in 2020, ratified in 2023 and effective from 17 July 2023, fully applied from 1 January 2024. It replaces the 1974 agreement under which workers were taxed exclusively in Switzerland, with 38.8% revenue returned to Italian border municipalities. The new framework creates two regimes: transitional for old frontalieri (valid until 2033) and permanent for new frontalieri, with concurrent Italy-Switzerland taxation.

What changes concretely in 2026

In 2026 the new regime is in its third full year, procedures are consolidated and updated tables reflect all adjustments agreed in the Italy-Switzerland bilateral commission. Key changes for new frontalieri vs 2024: clarification that the €10,000 allowance remains; the 45-day threshold for remote work from Italy is now codified as "permitted telework" without loss of status; new rules on tax credit for local and church taxes. For old frontalieri: no material change, the pre-2024 regime is guaranteed until 2033.

Tax table 2024 vs 2025 vs 2026 — typical salary

Take a new single frontaliere with CHF 70,000 gross in Ticino. 2024: Swiss withholding ~CHF 8,400, Italian IRPEF on Swiss gross minus €10,000 allowance ~€14,500, tax credit ~€9,000 → residual IRPEF ~€5,500, net annual ~€52,000. 2025: same parameters, net ~€52,200. 2026: with codified 45-day telework threshold, no net change if within threshold. An old frontaliere with identical gross keeps net ~€58,000 (Switzerland-only until 2033).

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

New frontalieri: (1) keep withholding tax certificate and annual Lohnausweis; (2) obtain Italian fiscal residence certificate from your Comune; (3) declare in Italy with section CE correctly filled for tax credit; (4) track telework days from Italy (max 45/year); (5) consider voluntary Pillar 3a as a tax deduction. Old frontalieri: (1) verify pre-2024 status is recognised; (2) keep contract documents proving hire date before 17/07/2023; (3) plan the 2033 transition. To simulate your specific case use the 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?: The 2020 Italy-Switzerland agreement (in force since 2024) ends fiscal exclusivity for new cross-border workers (hired from 17/07/2023): Switzerland keeps 80% of withholding tax revenue and Italy levies IRPEF with a EUR 10,000 allowance plus a foreign tax credit. Old cross-border workers stay under the pre-2024 regime until 2033. Fiscal ristorni to border municipalities are phased out.
Who counts as a new cross-border worker under the New Agreement?: Under the New Italy-Switzerland Agreement, a new cross-border worker is anyone hired on or after 17 July 2023 by a Swiss employer, residing in an Italian municipality within 20 km of the border, and returning home at least weekly. Transfers to a new Swiss employer after that date also qualify as new cross-border workers, even if the previous role began earlier.
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?: From 2034 the transitional regime ends and all cross-border workers are taxed under the New Agreement rules: Swiss withholding tax up to 80% and Italian IRPEF with the EUR 10,000 allowance and foreign tax credit. Anyone still in service will switch automatically. The fiscal ristorni to border municipalities will have been fully phased out by then.