New Tax Regime for Frontier Workers from 2024

As of 2024, Article 6 of the Omnibus Decree introduces a new optional tax regime for frontier workers residing within 20 km of the Swiss border. This novelty concerns those who work as employees for a Swiss employer, but were previously not considered frontier workers, according to the new Italy-Switzerland Agreement of 2020, applicable from 1 January 2024.

Who can benefit? Workers residing in the districts listed in the Decree can opt for preferential taxation of 25% of the taxes paid in Switzerland on income from employment, with no tax credit. This allows for tax treatment similar to that of the ‘old frontier workers’.

Main requirements

- Employment in Switzerland between 31 December 2018 and 17 July 2023.

- Income taxed in Switzerland with withholding tax on 80% of the tax base.

- Residence in one of the districts listed in Annex 1 to the Omnibus Decree.

The option must be exercised in the tax return, with payment of the substitute tax by the deadline for the balance.

Our Staff remains at your disposal for any further information.