What digital data does the Revenue Agency analyse?

The Revenue Agency uses the analysis of electronic payments (credit cards, apps), geolocation data, energy consumption and online transactions. These elements are crossed to verify whether the taxpayer's consumption habits correspond to the declared tax residence, monitoring the actual presence on the national territory.

What changes for old frontier workers from 2024?

For old frontier workers, or those who were such before 17 July 2023, an exemption of 7,500 euros and a transitional regime applicable from 2024 to 2033 are provided. Instead, the new frontier workers benefit from a deductible of 10,000 euros, in accordance with the New Frontier Agreement in force from 1 January 2024.

How is double taxation avoided?

Double taxation is avoided through the tax credit, which the taxpayer must indicate in the EC framework of the model 730 in Italy. Income tax is withheld at source in Switzerland, and Italy recognises the credit for taxes already paid, following the provisions of the Convention of 9 December 1976.

Verification of tax residence: the digital evidence of the ADE (cross-border guide)

Di Marco Ferrari · Published on 29 July 2026

How the Revenue Agency uses digital traces to verify the tax residence of taxpayers. Practical analysis and regulatory references.

Context

In a nutshell

The ADE analyzes digital traces to confirm tax residency.
Monitoring of electronic payments, geolocation and web data.
Need for documentary transparency to avoid disputes.

Key facts

What: Verification of tax residence through digital evidence.
When: Procedures in constant monitoring.
Where: Italy, with an impact on cross-border taxpayers.
Who: Revenue Agency (ADE).

The assessment of tax residence by the Revenue Agency (ADE) increasingly makes use of digital analysis tools. Today, technology makes it possible to cross streams of data that were difficult to trace in the past. The authorities' attention is focused on verifying the effective presence of the taxpayer on the national territory, comparing official declarations with digitally recorded consumption habits. This approach is part of the control strategies to prevent tax evasion and ensure the correct payment of taxes, in line with current regulations that define the criteria for tax residence. The traceability of payments and the use of connected devices offer assessment bodies a significant amount of information to validate or dispute the tax position declared by the citizen.

The role of digital data in control

The digital evidence collected includes credit card transactions,

Operational details

The analysis of tax residence requires special attention regarding income taxes. For workers, withholding tax is deducted only in Switzerland, while Italy avoids double taxation through the tax credit within the CE 730 framework. It is essential to remember that the New Cross-Border Workers Agreement, signed on December 23, 2020, has been in force since January 1, 2024, with Italian ratification through Law 83 of June 13, 2023. For old cross-border workers, defined as those who were already such before July 17, 2023, an exemption of 7,500 euros is provided, along with a transitional regime valid from 2024 to 2033, while for new cross-border workers, the allowance is set at 10,000 euros.

Comparison between tax and social security regimes

The Convention against double taxation between Italy and Switzerland, signed on December 9, 1976, remains the key normative pillar. Switzerland, not being an EU/EEA member, applies specific rules that taxpayers must be aware of. On the contribution side, the rates for employees in Switzerland include AVS/AI/IPG at 5.3% and AD/AC at 1.1% (with a maximum cap of 148,200 CHF). Additionally, LAINF varies between 0.7% and 1.5%, and LPP ranges from 7% to 18% depending on age group, starting from age 25. In Italy, IRPEF follows progressive brackets: 23% up to 28,000 euros, 35% between 28,001 and 50,000 euros, and 43% over 50,000 euros. It is crucial to monitor your salary calculator to understand the net impact of these deductions and maintain proper tax planning in case of audits, also using exchange rate comparison tools to manage income effectively. Caution when declaring income is the best defense against possible residence disputes.

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Key points

To properly manage their tax situation, individuals must adopt a rigorous documentation strategy. In case of an audit, taxpayers should be prepared to present evidence confirming their actual residence. This process involves systematically keeping bank statements, lease or property contracts, utility bills, and tax residence certificates issued by the relevant authorities. It is not only about fulfilling a requirement but about building a set of proofs that certify the absence of significant ties with Italian territory that could suggest a different tax residence from the one declared. Those working in Switzerland should ensure their situation aligns with the requirements of the New Border Workers Agreement, paying attention to the deadlines for filing taxes in Italy.

Practical procedures for the taxpayer

The procedure first involves verifying registration with the registry office and correctly managing the right of option for LAMal, the health insurance, which includes deductibles for adults between 300 and 2,500 CHF. It is essential to regularly consult the salary calculator to verify the accuracy of the withholding taxes applied at source, avoiding surprises during the annual declaration. If there are doubts about one's residence or how the 1976 Convention is applied, it is advisable to consult with professionals specialized in international taxation. Transparency with the Revenue Agency and maintaining clear documentation are key to navigating the complexities of the tax system smoothly. Keeping an updated record of activities, payments made, and official correspondence is a fundamental habit for every worker. To deepen understanding of tax calculation and management of gross and net income, it is recommended to use the salary calculator available on the portal.

Frequently Asked Questions

What digital data does the Revenue Agency analyse?: The Revenue Agency uses the analysis of electronic payments (credit cards, apps), geolocation data, energy consumption and online transactions. These elements are crossed to verify whether the taxpayer's consumption habits correspond to the declared tax residence, monitoring the actual presence on the national territory.
What changes for old frontier workers from 2024?: For old frontier workers, or those who were such before 17 July 2023, an exemption of 7,500 euros and a transitional regime applicable from 2024 to 2033 are provided. Instead, the new frontier workers benefit from a deductible of 10,000 euros, in accordance with the New Frontier Agreement in force from 1 January 2024.
How is double taxation avoided?: Double taxation is avoided through the tax credit, which the taxpayer must indicate in the EC framework of the model 730 in Italy. Income tax is withheld at source in Switzerland, and Italy recognises the credit for taxes already paid, following the provisions of the Convention of 9 December 1976.