Tax Credit | Frontaliere Ticino
Tax Credit — free tools and expert guides for cross-border workers (frontalieri) between Switzerland and Italy. Compare salaries, tax, LAMal health insurance, pensions, and cost of living in Ticino. Updated 2026.
By Frontaliere Ticino Editorial Team · Cross-border tax & pension specialists
The tax credit calculator determines the foreign tax credit (Art. 165 TUIR) applicable in the Italian tax return, avoiding double taxation on Swiss employment income.
Under the 2024 New Agreement, Italy taxes new cross-border workers' income with an EUR 10,000 franchise and recognises a credit for Swiss withholding tax paid, up to the amount of Italian tax due.
The Art. 165 TUIR mechanism works by allowing Italian-resident cross-border workers to offset Swiss withholding tax against their Italian liability, preventing double taxation. The calculator shows the exact recoverable amount and distinguishes between old agreement workers with full credit and new agreement workers subject to the EUR 10,000 franchise.
This page is part of Frontaliere Ticino, the reference platform for cross-border workers between Switzerland (Canton Ticino) and Italy. Find practical tools, updated data, and verified information.
Content is designed to help cross-border workers make informed decisions about taxation, pensions, transportation, cost of living, and administrative procedures.
Frequently asked questions
- How does the tax credit for cross-border workers work?
- The tax credit avoids double taxation: taxes paid in Switzerland (withholding tax) are deducted from Italian IRPEF in Section CE of the tax return. The credit is limited to the Italian tax share corresponding to the foreign income. According to Elena Colombo, international tax accountant: 'It is essential to keep the Swiss salary certificate (Lohnausweis) as proof of the withholding tax paid'.
- What is the difference in tax credit between old and new cross-border workers?
- Old cross-border workers (before July 2023) pay only in Switzerland and do not declare in Italy, so they don't use the tax credit. New cross-border workers pay 80% of taxes in Switzerland and declare in Italy with a €10,000 exemption, using the tax credit for Swiss tax paid.
- In which section of the tax return is the tax credit declared?
- The tax credit for taxes paid abroad is declared in Section CE (Quadro CE) of the Modello Redditi PF (Individual Income Tax Return). You report the income produced abroad and the definitive foreign tax paid.
- Can the tax credit exceed the IRPEF due?
- No, the tax credit cannot exceed the IRPEF share proportional to the foreign income. If the Swiss tax is higher than the IRPEF share, the difference is not refundable but can be carried forward in the next 8 tax returns.
- Do I need to convert the Swiss tax from CHF to EUR?
- Yes, the withholding tax paid in CHF must be converted to EUR using the annual average exchange rate published by the Agenzia delle Entrate. For 2025 the indicative average rate is approximately 0.94 EUR per CHF.