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COST OF LIVING

The rules Swiss cross-border shoppers in France and Italy should know

If you live in Swiss regions of Geneva, Vaud, Jura, Neuchâtel or Ticino you probably shop in France or Italy more or less regularly. Here are the rules you should know about.

Published: 11 January 2022 13:46 CET
Updated: 26 January 2022 12:34 CET
These groceries are much cheaper across the border. Photo by Maria Lin Kim on Unsplash
These groceries are much cheaper across the border. Photo by Maria Lin Kim on Unsplash

Due to lower prices and greater variety, Swiss residents have been shopping in border regions of France for decades.

But if you think shopping in France got more complicated during the pandemic, consider this: “It’s not easy to go shopping in France, when you live in Geneva. At each passage through customs, there are checks. In the other direction too, there are many hassles, since the French francs are no longer accepted in Geneva stores”.

Confused? Don’t be — this is just a blast from the past, specifically from May 31st, 1968, about cross-border shopping on RTS public broadcasting.

The video included in this report shows that while cross-border shopping was as popular half a century ago as it is now, the process was much more complex and involved, for instance, a border guard asking drivers to open their wallets.

The situation is much simpler in January 2022. According to French Embassy in Switzerland, people living within a radius of 30km from the French border and travelling to France for less than 24 hours, are exempted from the obligation to show proof of vaccination or a negative test result required from ‘regular’ tourists.

However, once you are in France and want to get a bite to eat or a drink, you must show your Covid certificate (‘pass sanitaire’) to enter, the same way you would in Switzerland. Swiss certificate is accepted across the border, and vice-versa.

Please note that all the rules outlined in this article pertain to people who permanently reside in Switzerland, regardless of their nationality.

So if you have a UK (or any other) passport but live in Switzerland, these regulations apply to you.

READ MORE: 13 things that are actually ‘cheaper’ in Switzerland

Swiss customs rules

When bringing goods into Switzerland, whether from France or another border country, you will need to pay VAT if the amount exceeds 300 francs. 

While border checks are rare, those who make a habit of exceeding this amount – even if it is for goods for personal use – run the risk of falling foul of the authorities. 

There are several different rules in place for bringing in different items, including meats, cheeses and alcohol. 

The limits for each of these items can be found here. 

Keep in mind that while the 300-franc limit applies now, Switzerland looks set to reduce this to 50 francs in the future – although final approval of this is pending. 

READ MORE: Tax change: Switzerland to introduce 50 franc limit on cross-border shopping

What about French customs?

Swiss residents are entitled to tax free shopping in France, as Switzerland is a non-EU country. 

The rules state you must be at least 16 years of age and be visiting France for a period of less than six months.

French Customs is not responsible for reimbursing the VAT paid on purchases made in France. Only the retailer from whom you purchased the goods can do so, according to the French Customs site.

To qualify, the total amount of your purchases, inclusive of all taxes, must be greater than €100. They must have been bought in the same shop and on the same day. At the time of purchase, the retailer will give you a VAT refund form, which must be signed by both the retailer and you.

More information about how to claim your refund can be found here.

What about shopping in Italy?

Ticino residents are used to hop across the border for money-saving shopping sprees, but they will have to wait until at least January 31st to resume this activity.

That’s because since December 16th and until the end of this month, anyone crossing the border into Italy must meet certain requirements, according to the Federal Department of Foreign Affairs.

  • Complete the Digital Passenger Locator Form
  • Present a Digital COVID Certificate or other equivalent certification which attests the full vaccination or full recovery from coronavirus in the past six months
  • Present a PCR test (carried out within 48 hours) or antigenic swab test (carried out within 24 hours) prior to entry into Italy, with negative test result.

Obviously, these conditions, with no exemption for border residents, don’t make it worthwhile to cross into Italy with the mere purpose of shopping.

READ MORE: What are the current rules for Swiss cross-border shopping in Germany?

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For members

HEALTH

EXPLAINED: Which Swiss health insurance deductible makes most sense?

If you are a foreigner, understanding Switzerland’s health insurance system may not be easy. And figuring out which ‘out of pocket’ option you should choose can be a real brain twister.

Published: 12 May 2023 11:49 CEST
EXPLAINED: Which Swiss health insurance deductible makes most sense?

If you come from a European, or any other country with a nationalised health care service, then you will find Switzerland’s scheme vastly different.

The same applies to the United States as well. 

Even if you do understand the basics of the Swiss system, including the difference between the obligatory insurance — KVG in German, and LaMal in French and Italian — and the complementary policies, you may still have trouble wrapping your head around the out-of-pocket expenses (the so-called franchise) that you will have to pay yourself.

The deductible

It is not unusual for various policies, such as car or home insurance, to include a deductible — the amount you will have to pay yourself before the insurance starts covering incurred costs. But it is usually a fixed amount, determined by the insurance company.

Not so with the Swiss health insurance.

When you take out a policy, you will have to choose the amount of your annual franchise — ranging from the lowest, 300 francs, to the highest, which is 2,500 francs. (There are various other amounts in between as well, but these two are the most common).

Whichever amount you choose, you will have to pay it yourself before you can claim benefits from the insurance provider.

Highest versus lowest

At first glimpse, the 300-franc deductible is a more attractive option, because it means you will reach the franchise threshold quicker.

However, opting for this amount means that your monthly premiums will be quite a bit higher than if you choose the highest deductible, that is, 2,500 francs.

As an example, if you select the latter option, your monthly premium may be 300 francs or even less. With the former one, it could go up to 450 francs or more. (Keep in mind, though, that this is only a rough estimate of costs; the actual amount depends on your age and your canton of residence).

READ ALSO: Why do Swiss healthcare premiums vary so much per canton?

These amounts, by the way, apply to adults only. For children up to the age of 18, they go from 100 to 600 francs a month.

So which amount should you choose?

The rule is: the higher the deductible, the cheaper the premiums, and vice-versa.

However, before you base your decision on this statement alone, there are two important things to take into account: your health and finances.

People who are young and healthy, and who never or rarely get sick, visit doctors, take medications, or need medical treatments in general, most commonly choose the highest franchise, which means they will be paying lower premiums.

On the other hand, if you are older (which implies, statistically, that you are more likely to seek medical help), or if you have chronic health problems requiring medications and frequent doctor visits, then you are better off with the lower franchise.

That’s the health factor. In terms of finances, having the high deductible means that if all of a sudden you need medical help, you will have to pay 2,500 francs out of your own pocket before insurance steps in.

Which deductible you choose will depend on health and money. Photo: Claudio Schwarz on Unsplash

But that is not all.

Before you do the math to calculate which deductible makes most sense to you, also consider the cost of co-insurance.

What exactly is this?

It is the money you pay out of pocket towards health insurance costs — 10 percent in total.

In other words, after you use up your franchise, you still have to pay 10 percent of the cost for medical treatment (though different rules apply to children, accidents, and maternity).

The co-insurance cost is capped at 700 francs a year, meaning that even if you have frequent, and costly, medical procedures, you will not be charged the 10-percent co-pay after you reach the 700-franc mark.

So when you sit down to figure out which franchise makes most financial sense for you, this is the thing to remember:

If you choose the highest, that is, the 2,500-franc deductible, add to it the 700-franc co-insurance cost. This means that on top of your monthly premiums, you should put aside 3,200 francs a year per adult, to be used toward health costs.

Conversely, if you have a 300-franc deductible, and add the 700-franc co-pay, then you should have 1,000 francs available each year to pay for out-of-pocket medical expenses.

When can you change your deductible — if you decide to do so?

You can switch to a lower deductible at the beginning of the calendar year.

However, you must inform your health insurer of the change in writing by November 30th of the previous year.

The same applies to a higher deductible — it will take effect at the beginning of the calendar year. Here, the deadline for informing the insurance provider is December 31st.

If you don’t notify the insurers of either change by those dates, it will be assumed that your current deductible remains as is.

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