If you’re a fan of crossing the border to get the best value for money, 2026 could be one of the best years for Switzerland’s currency in the Eurozone in recent years.
That is a result of a new exchange rate analysis carried out by a financial services provider Wise.
It found that the already strong franc has appreciated by around 16 percent against the euro in the past five years, further widening the price gap with European states.
This means, of course, that if you spend your francs in the European Union, you will have a significantly higher purchasing power than in Switzerland. Clearly, however, the same is not true the other way around: converting euros into francs will leave you at a loss.
The current exchange rate is 1.08 euros for 1 franc, or .93 Swiss cents for 1 euro.
What does this mean in practice?
Concretely, the cost of some food in neighbouring countries Germany, France, and Italy is up to 63 percent lower than the same products are in Switzerland, Wise reported.
These products are particularly inexpensive abroad:
- Butter (250g) is around 63 percent cheaper in Germany than in Switzerland
- 10-pack of eggs is about 63 percent cheaper in France
- 2 kg of Gala apples cost 62 percent less in Italy
Overall, Germany offers the greatest savings on food for Swiss consumers: they can save an average of around 40 percent there, Wise figures reveal.
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Also according to the analysis, groceries in Germany are on average around 40 percent cheaper than in Switzerland.
This means that buying food abroad is ultimately quite a bit cheaper for Swiss consumers, even with the duty-free allowance being halved from 300 to 150 francs per person from January 2025.
So when it comes to the price of food, surrounding countries offer much better deals for Swiss consumers.
What about luxury items?
For luxury goods, price advantages can only be found sporadically, and not across the board
Hermès Arçon Slim bag, for instance, is around 7 percent cheaper abroad, which, including the Value Added Tax (VAT), corresponds to a saving of approximately 300 francs.
Omega Speedmaster Professional Moonwatch is approximately 200 francs cheaper in Germany after the VAT adjustment.
However, not all consumer goods are cheaper abroad – electronics certainly aren’t.
In fact, you can purchase most electronics in Switzerland for less money than elsewhere in Europe.
The reason is that, at 8.1 percent, the Value Added Tax (VAT) that is added to prices of all products sold in Switzerland, is much lower than in other countries.
As a comparison, the average standard VAT in the European Union is 21 percent, with some countries even exceeding this figure.
