Sistemi tassazione

New taxation of frontier workers Italy Switzerland: what changes

New taxation of frontier workers Italy Switzerland: what changes

15 Jun , 2022 - Fiduciaria Lago

Nuova tassazione lavoratori frontalieri Italia Svizzera: ecco cosa cambia

For some years there has been talk of a possible revision of the conditions that currently regulate the contracts of frontier workers between Italy and Switzerland and the related tax provisions. The last agreement, in fact, dates back to 1974 and needed to be re-evaluated. The new bill was born above all with the intention of clarifying.

The new bill was created above all with the intention of clarifying and regulating some unclear aspects relating, in particular, to the definition of frontier worker and the conditions relating to income taxation between the two countries.

So let's see what are the main differences between the two agreements and what changes from 2023 for cross-border commuters.

Old bilateral agreement from 1974:

Frontier workers who reside in the border Municipalities and return to Italy every day:

  • Taxation limited to withholding taxes in Switzerland only
  • Tax free income from work in Italy

Frontier workers who do not live in the border Municipalities or who do not have a daily return:

  • Obligation to file a tax return in Italy and pay IRPEF tax on Swiss income
  • Right to a tax credit for what has already been paid in Switzerland and a tax exemption of Euro 7,500 
Nuova Tassazione Lavoratori Frontalieri
Nuova Tassazione Lavoratori Frontalieri

New agreement on the taxation of frontier workers

Frontier workers residing in the border municipalities with daily return who worked in Switzerland even for just a few days between 1 January 2019 and 31 December 2022:

  • They do not undergo any changes but maintain the same benefits provided for by the old bilateral agreement until retirement, even in the event of a change of job and any periods of unemployment.

Cross-border workers who will start working in Switzerland after the entry into force of the new agreement (planned for 1 January 2023):

  • Competitive tax treatment between Italy and Switzerland similar to what is already envisaged today for frontier workers who do not live in border municipalities: withholding tax calculated at 80% and declaration in Italy of the net income received by deducting the withholding tax paid in Swiss.
  • Deductible of Euro 7,500 (with a request still in progress to bring it to Euro 10,000).

Contact us for questions, insights or to receive an personalized advice on your tax position as a cross-border commuter.

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