Border teleworking: agreement in force since 2024 (cross-border guide)

Context

In a nutshell

• Protocol in force since 9 February, applicable from the beginning of January 2024.
• Teleworking allowed up to 25% of annual working time.
• No changes to the tax rules in force or to the status of the worker.
• The automatic exchange of salary data between the two States has been introduced.

Key facts

• What: Modification protocol on the imposition of teleworking.
• When: Effective February 9, 2024 (effective January).
• Where: Relations between Switzerland and Italy.
• Who: Federal Councillor Karin Keller-Sutter and Minister Giancarlo Giorgetti.
• Limit: Up to 25% of annual working time.
• Penalties: Up to 10,000 francs for serious intentional infringements.

The amending protocol governing the imposition of teleworking for frontier workers officially entered into force on 9 February. The agreement, applicable retroactively from the beginning of January 2024, defines in a lasting way the rules for those who reside in Italy and work for employers located in Switzerland. This agreement definitively resolves the situation of uncertainty created since the end of January 2023, when the transitional rules introduced during the pandemic had expired. The document was signed in June 2024 between Federal Councillor Karin Keller-Sutter and Italian Minister of Economy and Finance Giancarlo Giorgetti.

The legislative path

The final green light came from the Italian Parliament, which has

Operational details

The introduction of the 25% threshold for teleworking represents a turning point for the approximately 90,000 border workers who reside in Italy and work in Switzerland. Prior to this agreement, the absence of clear rules after the end of the pandemic derogations had created a regulatory vacuum that made it difficult to schedule remote work activities. Now, Swiss employers have a solid legal basis to manage their employees who reside across borders, being able to offer greater flexibility without fearing repercussions on the taxation of employee income.

Operational impacts for companies

The implementation of the new agreements entails an additional administrative burden for businesses, including small and medium-sized enterprises (SMEs). During the parliamentary debates, it was highlighted that the system of automatic and reciprocal exchange of information requires employers to accurately collect data relating to days worked in agile mode. This obligation implies a necessary adaptation of the company's IT systems to correctly track the share of teleworking. The law provides for specific penalties for non-compliance, limited however to intentional infringements. The basic fine is fixed at 1,000 francs, but can reach 10,000 francs in case of recidivism or particularly serious violations. Consulta il calcolatore stipendio to check how your gross salary translates after taxes, keeping

Recommended tools

For an updated estimate, use the net salary calculator and the CHF-EUR exchange comparator.

Key points

For frontier workers, telework management does not require substantial changes to their tax return, but requires greater attention in communicating with the employer. It is essential that every day of work carried out in agile mode is correctly recorded so that the company can comply with the data transmission obligations provided for by the new federal law. The cantonal tax authorities and the Federal Tax Administration (FTA) work in close synergy to ensure that the exchange of information takes place automatically and in a timely manner, avoiding double taxation or gaps in tax collection.

Compliance Procedures

Those wishing to benefit from teleworking must check with their employer the technical and organisational availability of the company to accept this modality, ensuring that the 25% limit is not exceeded during the calendar year. Accuracy in the collection of data is not only an obligation to the tax authority, but a protection for the worker himself, who is thus guaranteed the correct taxation of his income according to the regulations in force. For those who need to plan their family budget or assess the tax implications of their salary, it is useful to use professional tools that allow you to analyse the impact of withholding taxes. Check your net income through our simulator to get a clear view of the

Source: cdt.ch