How do you avoid double taxation for border workers?

Double taxation is avoided through the tax credit mechanism. Border workers pay taxes at source in Switzerland, and this amount is subsequently deducted from the taxes due in Italy, indicating the income in the EC framework of the Italian tax return.

What changes for 'new frontier workers' from 2024?

The new frontier workers, defined as such under the new Agreement that entered into force on 1 January 2024, enjoy a tax exemption of 10,000 euros. This regime differs from the transitional one reserved for 'old frontier workers' (active before 17 July 2023), who benefit from a deductible of 7,500 euros until 2033.

What Swiss contributions are deductible from gross income?

For the purposes of income tax reporting in Italy, it is usually possible to subtract from the gross income received in Switzerland the mandatory social security contributions paid, such as the AVS, the AI, the IPG, the AD and the LPP contributions, as they are mandatory by law.

Foreign income: how to manage taxation (cross-border guide)

Di Valerie Linc · Published on 13 July 2026

Practical guide on tax controls for income produced abroad and rules to avoid double taxation between Italy and Switzerland.

Context

In a nutshell

Income from work in Switzerland follows specific tax rules.
Italy avoids double taxation through the tax credit.
The New Frontier Agreement is in force from 1 January 2024.

Key facts

What: Taxation of foreign income and tax credit.
When: Effective January 1, 2024 (new agreement).
Where: Italy-Switzerland Report.
Who: Revenue Agency and Swiss authorities.
Amount: Deductible of 10,000 euros for new frontier workers.

The management of income produced abroad, with particular reference to the context of frontier workers between Italy and Switzerland, is subject to precise regulations defined by international agreements. The fundamental pillar of this system is the Convention to avoid double taxation, signed on 9 December 1976 between the two countries. With the entry into force, on 1 January 2024, of the new Agreement on the taxation of frontier workers, ratified in Italy with Law 83 of 13 June 2023, the regulatory framework has been updated to reflect the current dynamics of the cross-border labour market.

Taxation mechanisms

The key principle states that income tax at source on employees' income is only withheld in Switzerland. To prevent the same income from being taxed in Italy, the system provides for the recognition of the tax credit. This mechanism allows the taxpayer to

Operational details

Practical Implications and Procedures

Proper management of the tax position requires a clear understanding of the rates and the necessary documentation. In Switzerland, withholdings include not only direct taxes, but also mandatory social security contributions such as AVS/AI/IPG, set at 5.3% at the employee's expense, and unemployment insurance (AD/AC) at 1.1% up to a ceiling of CHF 148,200. Added to these are the LAINF, which varies between 0.7% and 1.5%, and the LPP occupational pension, which varies between 7% and 18% according to age group.

For the Italian taxpayer, the transition from the previous regime to the current one entails the need to carefully monitor their Swiss paycheck to verify the correct application of withholdings. It is essential to keep the annual salary certificates or pay slips, as they constitute the indispensable documentary evidence to apply for the tax credit in the Italian tax return. In the event of discrepancies between what is declared in Italy and what is actually paid in Switzerland, the Revenue Agency may activate control procedures. The distinction between Italian personal income tax rates, which range from 23% for income up to 28,000 euros, to 35% up to 50,000 euros, up to 43% for the upper echelons, makes it crucial to correctly calculate the tax credit due. Calcola le tue imposte to have a clear picture of the residual tax burden. This is not a

Useful tools for your case

To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.

Frequently Asked Questions

How do you avoid double taxation for border workers?: Double taxation is avoided through the tax credit mechanism. Border workers pay taxes at source in Switzerland, and this amount is subsequently deducted from the taxes due in Italy, indicating the income in the EC framework of the Italian tax return.
What changes for 'new frontier workers' from 2024?: The new frontier workers, defined as such under the new Agreement that entered into force on 1 January 2024, enjoy a tax exemption of 10,000 euros. This regime differs from the transitional one reserved for 'old frontier workers' (active before 17 July 2023), who benefit from a deductible of 7,500 euros until 2033.
What Swiss contributions are deductible from gross income?: For the purposes of income tax reporting in Italy, it is usually possible to subtract from the gross income received in Switzerland the mandatory social security contributions paid, such as the AVS, the AI, the IPG, the AD and the LPP contributions, as they are mandatory by law.