New taxation of frontier workers Italy Switzerland: what changes
15 Jun , 2022 - Fiduciaria Lago
Già da alcuni anni si parlava di una possibile revisione delle condizioni che regolano ad oggi i contratti dei lavoratori frontalieri tra Italia e Svizzera e le relative disposizioni fiscali. L’ultimo accordo, infatti, risale al 1974 e necessitava di essere sottoposto a nuova valutazione.
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:
- Obbligo di effettuare la dichiarazione dei redditi in Italia e pagare l’imposta IRPEF sul reddito svizzero
- Diritto al credito d’imposta per quanto già versato in Svizzera e a franchigia fiscale di Euro 7.500
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.
Frontalieri che cominceranno a lavorare in Svizzera dopo l’entrata in vigore del nuovo accordo (previsto per il 1° gennaio 2023):
- Trattamento fiscale concorrenziale tra Italia e Svizzera simile a quanto già oggi previsto per i frontalieri che non vivono nei Comuni di frontiera: imposta alla fonte calcolata nella misura dell’80% e dichiarazione in Italia del reddito netto percepito togliendo l’imposta alla fonte pagata in Svizzera.
- 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.
