Tax credit for border workers: calculation, limits and Italian declaration (cross-border guide)

Context

The New Frontier Agreement, signed on 23 December 2020, provides for the adoption of a tax credit for border families in Switzerland. This tax benefit is intended for couples or only people who have at least one cross-border child and who regularly use their home as a basis of income.

The tax credit is calculated as 100% of the amount of the exemption for old border workers (currently equal to 7500 euros), for each resident border worker child, up to a maximum of three children. The tax benefit applies annually and can be claimed for three consecutive years, or until 31 December 2026.

In order to benefit from the tax credit, border families must submit an annual tax return, where they declare the residence and tax base of the border children. In addition, couples must file a joint return, indicating the nature of the relationship and the tax base of the couple.

As far as the cantons are concerned, most of the cantons have already passed the law for the introduction of the tax credit. For example, the Ticino Confederation has already approved the law and will apply the provisions of the New Frontier Agreement as of 1 January 2021.

In summary, the New Frontier Agreement represents an important innovation in terms of tax policies and support for the frontier family in Switzerland. With the adoption of the tax credit, households

Operational details

The objective of the tax credit is to reduce the tax burden for border families, a disadvantaged category compared to families with Swiss citizenship. These border workers, who come mainly from non-EU countries, often have greater difficulty finding work, accessing training opportunities and social inclusion than their peers. The tax credit, established by the Canton of Ticino and then extended to all Cantons, aims to reduce this disparity.

To benefit from the tax credit, border families must submit the Italian declaration, an official form that requires information on income, expenses and benefits. The calculation of the tax credit depends on the declared income and the number of children. For example, border crossers with an income of less than 18,000 Swiss francs gross per person and up to 3 children can benefit from a tax credit equal to 50% of the declared income.

Concrete examples with real numbers

Most border families live in the Canton of Ticino, where the tax credit is more generous. For example, border households with an income of less than 18,000 gross Swiss francs per person and up to 3 children can benefit from a tax credit of 9,000 Swiss francs, equivalent to about 50% of the declared income.

Italian limits and declarations

Italian declarations must be submitted within

Useful tools for your case

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

Key points

Tax credit for border workers: calculation, limits and Italian declaration

Through an Italian declaration submitted by 30 June 2026, frontier workers and professionals can access a 25% tax discount on the tax credit for Swiss clothing and footwear purchased at the branches of the Swiss brand. This tax incentive was introduced in 2021 and replaced the border tax credit, which ended on 31 December 2033.

Calculation of the tax credit

To calculate the tax credit, the following parameters are considered:

• Net amount of purchases made at branches of the Swiss brand;
• Amount of the tax credit granted by the Federal Office of Transport, Tickets and Patents (UVTTB);
• Amount of tax credit due.

Tax Credit Limits

The allowance for frontier workers is 7500 euros per year, until 2033.

Relevant Swiss cantons and cities: Misano and Mendrisio (GR): The branch of the Swiss brand closest to the Italian border is in Misano and Mendrisio, in Grisons.

• Bausen and Trummen (LU): The nearest branch to the Italian border is in Trummen, Vaud.

Italian Declaration

To access the tax credit, border workers and professionals must submit an Italian declaration by 30 June 2026. The declaration must be completed using the appropriate form provided by the UVTTB and must be accompanied by a document of

For a precise net salary calculation, use our tax comparator: compare take-home pay between G and B permits with all 2026 deductions.