Calculation of border taxes over 20 km: rules and simulations (cross-border guide)
Since 2024, border crossers over 20 km from the border have undergone tax changes: no concessions, IRPEF impact, tax credit and simulations.
Contesto
In short - From 2024 the taxation for those who work over 20 km from the border changes - The benefits for border workers no longer apply in many cases - Income is taxed in Switzerland with a tax credit in Italy - Different exemptions are provided for old and new border workers ## Key facts - What : New tax rules for border workers over 20 km from the border - When: From 1 January 2024 - Where: Switzerland, Italy (border regions) - Who: Border workers resident over 20 km, Swiss and Italian tax authorities - Amount: €10,000 new border workers, exemption €7,500 old border workers On 1 January 2024 marks a turning point for the taxation of Italian border workers who work in Switzerland and reside over 20 km from the border. With the entry into force of the new Frontier Agreement, signed on 23 December 2020 and ratified by Italy with Law 83 of 13 June 2023, the rules on tax benefits and calculation change. The new provisions apply to workers who do not fall within 20 km of the Swiss border, excluding them from some facilities historically provided for traditional border workers. ### What changes with the new tax regime Border workers who reside beyond 20 km no longer benefit from the specific benefits reserved for those who live closer to the border. In particular, for these workers the normal income tax at source applies in Switzerland, without the
Dettagli operativi
Practical analysis: what it means for cross-border workers living over 20 km away The entry into force of the new Cross-border Agreement has a concrete impact on the taxation of Italian workers residing more than 20 km from the Swiss border. The main change concerns the loss of historic tax benefits, with immediate effects on payslips, tax returns, and fiscal management between Italy and Switzerland. ### Impact on payslip and net income From 2024, cross-border workers living over 20 km from the border are subject to withholding tax at source in Switzerland, which is the only direct taxation on employment income. In Italy, double taxation is avoided thanks to the tax credit recognized via the CE section of the 730 tax return. However, after the applicable exemptions (€7,500 for old, €10,000 for new), IRPEF is applied according to ordinary Italian tax rates. This may lead to an increase in effective taxation compared to the past, especially for those earning incomes above the indicated thresholds. ### Hypothetical simulation If a new cross-border worker from 2024 has taxable income in Switzerland, the first €10,000 are exempt. On amounts exceeding this, ordinary IRPEF rates apply: 23% up to €28,000, 35% between €28,001 and €50,000, 43% above €50,000. The amount already paid in Switzerland is deducted as a tax credit. Differences between Swiss and Italian taxation may result in balances to be paid to the Italian tax authorities. Find out how the tax return works in Italy for cross-border workers ### Social security and insurance contributions In addition to direct taxation, cross-border workers living over 20 km continue to pay AVS/AI/IPG contributions (5.3%), AD/AC (1.1% up to CHF 148,200), LAINF (0.7–1.5%), and LPP (from 7 to 18% depending on age). Mandatory heal...
Punti chiave
Procedure for Tax Calculation and Requirements 2024 For cross-border workers residing more than 20 km from the Swiss border, calculating taxes and managing fiscal obligations requires careful attention to a series of steps, especially after the changes introduced in 2024. ### Step-by-step: How to Proceed 1. Check the actual distance from the border: if it is more than 20 km, you fall under the new regime. 2. Gather documentation regarding income earned in Switzerland, including certification of withholding taxes. 3. Complete your Italian tax declaration using section CE of the 730 form, to claim the tax credit. 4. Apply the relevant exemptions: €7,500 for old cross-border workers (transitional regime 2024–2033), €10,000 for new ones. 5. Calculate the IRPEF due on amounts exceeding the exemption, using the ordinary rates (23%, 35%, 43%). 6. Deduct from the total IRPEF the tax credit paid in Switzerland. Use the salary/tax calculator for a personalized simulation ### Deadlines and Documents to Submit Deadlines for the tax declaration follow the Italian fiscal calendar. It is essential to keep all documentation regarding Swiss withholdings and contributions paid (AVS/AI/IPG, AD/AC, LAINF, LPP), as well as documents related to LAMal. See the complete guide to the cost of living for cross-border workers ### Useful Tools To facilitate tax calculation and assess the impact on net income, you can use the salary and tax calculator available on the website. This tool allows you to simulate different situations, taking into account exemptions, IRPEF rates, and mandatory contributions. Simulate your fiscal situation now with the Frontaliere Ticino calculator
Punti chiave
[{"q":"How is the income of border workers over 20 km from the border taxed?","a":"Income from work of border workers over 20 km from the border is taxed exclusively in Switzerland with a withholding tax. In Italy, double taxation is avoided through the EC 730 tax credit; ordinary personal income tax is applied to sums exceeding the deductible."},{"q":"What are the deductibles and exemptions provided for by the new Frontier Agreement?","a":"For old frontier workers (already before 17 July 2023) an exemption of €7,500 is provided for the transitional period 2024-2033. For new frontier workers, the deductible is €10,000. Beyond these thresholds, income is subject to personal income tax according to Italian rates."},{"q":"What contributions and insurance are mandatory for border workers over 20 km?","a":"For all border workers, AVS/AI/IPG contributions (5.3% borne by the employee), AD/AC (1.1% up to CHF 148'200), LAINF (0.7-1.5%), LPP (7–18% depending on age) and LAMal health insurance with an annual deductible between CHF 300 and 2'500 are mandatory."}]
Frequently Asked Questions
- How is the income of border workers over 20 km from the border taxed?
- Income from work of border workers over 20 km from the border is taxed exclusively in Switzerland with a withholding tax. In Italy, double taxation is avoided through the EC 730 tax credit; ordinary personal income tax is applied to sums exceeding the deductible.
- What are the deductibles and exemptions provided for by the new Frontier Agreement?
- For old frontier workers (already before 17 July 2023) an exemption of €7,500 is provided for the transitional period 2024-2033. For new frontier workers, the deductible is €10,000. Beyond these thresholds, income is subject to personal income tax according to Italian rates.
- What contributions and insurance are mandatory for border workers over 20 km?
- For all border workers, AVS/AI/IPG contributions (5.3% borne by the employee), AD/AC (1.1% up to CHF 148'200), LAINF (0.7-1.5%), LPP (7–18% depending on age) and LAMal health insurance with an annual deductible between CHF 300 and 2'500 are mandatory.