The Italian Ministry of Foreign Affairs announced on 10 February that the second protocol amending the 2020 Italy–Switzerland cross-border commuter agreement entered into force on 9 February 2026. The news was published by Bloomberg Tax on 12 February. The protocol finalises withholding-tax and information-exchange rules for some 80,000 daily commuters who live in Italy’s Lombardy and Piedmont regions but work in the Swiss cantons of Ticino, Grisons and Valais.
Key changes include a phased reduction of Swiss source-tax from 80 % to 60 % over three years and tighter data-sharing between Swiss cantonal tax offices and Italy’s Agenzia delle Entrate. The goal is to avoid double taxation while ensuring correct crediting of taxes in Italy. Employers must now report gross pay and Swiss taxes withheld via an upgraded electronic platform compatible with both countries’ payroll schemas.
For mobility managers the immediate action point is payroll configuration: Swiss entities employing Italian-resident staff must update withholding rates from 1 March 2026 and issue revised salary certificates. Commuters holding G-permits should be briefed on potential cash-flow changes, as Italian final settlements will only credit Swiss tax proven via the new real-time exchange.
![Italy–Switzerland Cross-Border Commuter Tax Protocol Takes Effect]()
For readers needing practical assistance with cross-border paperwork, VisaHQ’s Switzerland portal (https://www.visahq.com/switzerland/) offers quick, online help with residence permits, G-passes and other travel documents. Their step-by-step interface can relieve HR teams and commuters of the administrative burden while the new tax regime takes effect.
Companies seconding staff from Switzerland into Italy for short projects under 90 days should note that the protocol does not alter social-security rules but clarifies that days worked in Italy will count toward the 183-day tax-presence threshold when aggregated with border-commute days.
The agreement removes a long-standing irritant in bilateral relations and is expected to stabilise the talent pool for Ticino-based finance and life-science firms that rely on Italian software engineers, lab technicians and customer-service specialists.
Key changes include a phased reduction of Swiss source-tax from 80 % to 60 % over three years and tighter data-sharing between Swiss cantonal tax offices and Italy’s Agenzia delle Entrate. The goal is to avoid double taxation while ensuring correct crediting of taxes in Italy. Employers must now report gross pay and Swiss taxes withheld via an upgraded electronic platform compatible with both countries’ payroll schemas.
For mobility managers the immediate action point is payroll configuration: Swiss entities employing Italian-resident staff must update withholding rates from 1 March 2026 and issue revised salary certificates. Commuters holding G-permits should be briefed on potential cash-flow changes, as Italian final settlements will only credit Swiss tax proven via the new real-time exchange.
For readers needing practical assistance with cross-border paperwork, VisaHQ’s Switzerland portal (https://www.visahq.com/switzerland/) offers quick, online help with residence permits, G-passes and other travel documents. Their step-by-step interface can relieve HR teams and commuters of the administrative burden while the new tax regime takes effect.
Companies seconding staff from Switzerland into Italy for short projects under 90 days should note that the protocol does not alter social-security rules but clarifies that days worked in Italy will count toward the 183-day tax-presence threshold when aggregated with border-commute days.
The agreement removes a long-standing irritant in bilateral relations and is expected to stabilise the talent pool for Ticino-based finance and life-science firms that rely on Italian software engineers, lab technicians and customer-service specialists.
