What is the difference between the tax limit of 25% and the social security limit of 49.9%?

The 25% limit is used to establish where employees' income should be taxed for frontier workers, preventing short periods of smart working from modifying the tax power. The limit of 49.9%, on the other hand, concerns exclusively the applicable legislation on social security, governed by European Regulations no. 883/2004 and no. 987/2009, allowing you to maintain your registration with Swiss social security.

What happens if I exceed the 25% teleworking threshold?

If teleworking exceeds 25% but remains below 49.9%, the border worker continues to be subject to Swiss social security, as long as they hold the A1 certification. From a fiscal point of view, the situation changes as the 25% limit is set to maintain border status and taxing power. You need to check with your employer about the specific implications on income taxation.

How can I keep my Swiss pension by working from home?

In order to maintain Swiss social security by working from home, teleworking in the State of residence must remain below 50% (the practical limit is 49.9%) and the conditions of the Framework Agreement based on Article 16 of Regulation (EC) No 883/2004 must be met. It is essential that the A1 certification is issued, which attests to the applicable social security legislation.

Frontier teleworking: tax and social security limits (cross-border guide)

Di Marco Ferrari · Published on 29 July 2026

Italy-Switzerland frontier workers: teleworking follows two distinct thresholds. Find out how tax 25% and social security 49.9% affect taxes and contributions.

Context

In a nutshell

Tax threshold of 25% for teleworking from home.
Social security limit of 49.9%.
A1 certification is required for cross-border teleworking.
Rules based on the Agreement of 23 December 2020.

Key facts

What: Teleworking limits for border workers
When: From 1 January 2024
Where: Italy and Switzerland
Who: Frontier workers and employers
Amount: 25% (tax) and 49.9% (pension)

The Borders Agreement signed on 23 December 2020, which entered into force in 2023, established a new regulatory framework for cross-border workers. One of the most complex issues concerns the management of teleworking, which today follows two different thresholds: a fiscal one, set at 25%, and a social security one, which reaches 49.9%. These percentages are not interchangeable and serve separate legal purposes. For the period between 1 January 2024 and the entry into force of the Protocol, the limit of 25% teleworking from home in the State of residence allows the status of border worker to be maintained. In this threshold, days worked from home are considered, for tax purposes, as carried out at the headquarters of the Swiss employer. It is a legal fiction aimed at keeping the distribution of taxing power between the two countries unchanged.

The distinction between tax and social security

Many workers make the mistake of thinking that exceeding the tax threshold leads to

Operational details

The practical analysis of the two thresholds reveals that managing smart working requires constant monitoring of working days. While the fiscal limit of 25% aims to prevent short periods of remote work from altering tax authority powers, the limit of 49.9% addresses the need to define the applicable social security legislation. In practical terms, exceeding the fiscal threshold does not necessarily mean switching to Italian social security. If the worker remains below 49.9%, they can continue to be insured in Switzerland, ensuring the continuity of contributions paid to Swiss social security entities. This flexibility, introduced to modernize the labor market, requires strict management by companies and consultants.

…

Key points

The management of remote work requires a methodical approach, especially regarding the necessary documentation. The first step for every cross-border worker is to verify, with their employer, the actual percentage of work performed from home. This calculation must be precise, as even minimal exceeding of the established thresholds can have significant consequences. Once the smart working quota is defined, it is necessary to ensure that the A1 certificate has been correctly requested and issued, thus guaranteeing the validity of the applicable social security legislation. The procedure should not be underestimated: compliance with European directives is the only way to avoid tax or social security disputes. For those in uncertain situations, it is advisable to compare their payslip with current regulations, using the analysis tools provided for cross-border workers. If the fiscal threshold of 25% is exceeded, the worker must promptly consult the competent authorities to understand the implications for their total tax burden.

…

Frequently Asked Questions

What is the difference between the tax limit of 25% and the social security limit of 49.9%?: The 25% limit is used to establish where employees' income should be taxed for frontier workers, preventing short periods of smart working from modifying the tax power. The limit of 49.9%, on the other hand, concerns exclusively the applicable legislation on social security, governed by European Regulations no. 883/2004 and no. 987/2009, allowing you to maintain your registration with Swiss social security.
What happens if I exceed the 25% teleworking threshold?: If teleworking exceeds 25% but remains below 49.9%, the border worker continues to be subject to Swiss social security, as long as they hold the A1 certification. From a fiscal point of view, the situation changes as the 25% limit is set to maintain border status and taxing power. You need to check with your employer about the specific implications on income taxation.
How can I keep my Swiss pension by working from home?: In order to maintain Swiss social security by working from home, teleworking in the State of residence must remain below 50% (the practical limit is 49.9%) and the conditions of the Framework Agreement based on Article 16 of Regulation (EC) No 883/2004 must be met. It is essential that the A1 certification is issued, which attests to the applicable social security legislation.