How to open an account in Switzerland as a cross-border worker?

This article will guide you through the steps of opening an account, the available banks, the necessary documents, and the tax obligations to comply with.

Why open a bank account in Switzerland as a cross-border worker?

Opening a bank account in Switzerland is almost a requirement for a cross-border worker wishing to work in the country. Indeed, it is rare for Swiss companies to cover the costs related to the Swiss franc to euro conversion when salaries are paid. Most employers prefer to pay salaries directly in the local currency, i.e., in Swiss francs (CHF). This means you need to have a CHF account to avoid complications. However, we will see later that there is another more advantageous alternative available to receive your salary without a Swiss bank account.

However, it is important to know that in Switzerland, it is legal for a company to pay a salary in a currency other than the Swiss franc, such as the euro or the dollar. The Federal Council confirmed this practice in a statement, even if, as previously mentioned, salaries are generally paid in CHF.

Indeed, if you are paid in euros or another currency, you could be exposed to exchange rate fluctuations, which may affect the real value of your salary.

Which types of banks to choose for opening an account in Switzerland?

You have two main options: traditional Swiss banks and online banks (neo-banks).

Each has its advantages and disadvantages, and the choice will depend on your specific needs. 

Traditional Swiss banks

Traditional banks such as UBS, PostFinance, BCGE are well-established and offer a wide range of services. They are ideal for those seeking security and a comprehensive range of services, from account management to investment and credit solutions. However, these banks often have higher management fees compared to online banks. It is therefore important to compare banking fees carefully before committing.

Online banks (neo-banks)

Neo-banks, on the other hand, offer a modern and flexible alternative. You can open an account entirely online, often without having to go to a branch, which makes the process quick and easy. Additionally, their fees are generally lower than those of traditional banks. However, not all neo-banks allow you to receive Swiss salaries, mainly because they lack a local IBAN, which can be an issue for cross-border workers. It is therefore essential to check each bank’s conditions before making your choice.

The different types of banks in Switzerland: a variety of services

In Switzerland, there are several types of banks, each with specific services adapted to different needs.

• Cantonal banks, such as the Banque Cantonale de Genève (BCGE) or the Banque Cantonale Vaudoise (BCV), are public institutions offering local banking services, mainly to the inhabitants of their canton.
• Private banks, such as Pictet or Lombard Odier, specialize in wealth management and premium financial services.
• Major commercial banks, such as UBS, which offer a wide range of services to individuals and businesses.
• Cooperative banks, like Raiffeisen, focus on community services and local customers.

Steps to open a bank account in Switzerland

The process of opening a bank account in Switzerland is relatively straightforward, whether with a traditional bank or online. However, certain documents are essential.

Necessary documents for opening an account in Switzerland as a cross-border worker

To open a bank account in Switzerland, banks require the following documents:

• A valid form of identification (passport or ID card)
• Proof of address dating back less than 3 months
• A Swiss work permit (often the G permit for cross-border workers)
• Proof of income (such as an employment contract or pay slips)

Some banks may also request bank statements to assess your financial situation. 

Opening process in a traditional Swiss bank 

Opening an account with a traditional Swiss bank generally requires an appointment at a branch. During this appointment, you will need to provide all required documents and discuss the various options available. After your application is approved, you will receive your banking information, including your CHF IBAN, which will allow you to receive your salary once provided to your employer.

Opening an account online 

If you prefer a more flexible solution, some online banks allow you to open an account remotely. The process is simple: just fill out an online form, upload the required documents, and once approved, you will receive your banking details. This saves you from having to travel to a branch and lets you manage your finances more efficiently. 

Tax obligations related to opening an account in Switzerland

Opening an account in Switzerland also entails tax obligations, particularly with regard to the French authorities. As a French resident, you must declare any foreign account on your annual tax return. In fact, you will need to fill in Cerfa form No. 3916. This declaration must be made every year, under penalty of fines of up to 1,500 euros per undeclared account.

Transparency and exchange of tax information

Switzerland and France have established an automatic exchange of tax information. This means that your Swiss bank regularly sends information about your accounts and transactions to the French tax authorities. It is therefore crucial to ensure that your account complies with tax regulations to avoid any unpleasant surprises.

How much does it cost to open and maintain a bank account in Switzerland?

The management fees for a checking account in Switzerland vary depending on the bank and the services offered.

Monthly management fees

Management fees often range between 10 and 30 CHF per month, depending on the bank and included options (such as a debit card, international transfers, etc.). Some banks charge additional fees if a minimum balance is not maintained.

Online banks generally offer lower fees compared to traditional banks. 

Withdrawal and transfer fees

ATM withdrawals from your own bank’s ATMs are usually free. However, fees may apply if you withdraw money from another bank’s ATM. Additionally, international transfers, especially to euro accounts, can incur variable (often high) fees, which should be checked with each bank.

It is therefore essential to compare not only management fees but also withdrawal, transfer fees, and the options included with your account.

Can a cross-border worker receive their salary without having a bank account in Switzerland?

An interesting alternative for cross-border workers: the digital exchange office

As a Swiss cross-border worker, you can receive your salary directly in euros without having to open a Swiss account. By going through a digital exchange office like Ben S. Digital Change, your salary, which is first paid in Swiss francs into the platform’s account, will be converted into euros before being transferred to your euro bank account. This solution allows you to save on the banking fees associated with managing a bank account in Switzerland while benefiting from a Swiss franc to euro conversion at a favorable rate.

Ben S. Digital Change offers competitive and transparent exchange rates, which makes it cheaper to convert your income received in Swiss francs into euros, thereby avoiding the high fees often associated with currency conversions at traditional banks. This represents a practical and cost-effective solution for cross-border workers, enabling them to optimize the management of their salary.