Cross-border shopping up among Swiss residents despite cut to tax-free limit

The number of people choosing to shop across Switzerland’s borders in neighbouring countries rose by 2,8 percent in 2025 as the Swiss franc strengthened against the euro.

Cross-border shopping increased 2,8 percent in 2025

Switzerland is often known for its high prices, which is why many residents choose to shop for groceries in neighbouring countries where items tend to cost less. In fact, in 2025, the number of people shopping in countries like Germany, France, Italy and Austria has increased, according to the Swiss Retail Federation and BAK Economics.

The number of card payments made in neighbouring countries increased by 2,8 percent in 2025 compared to 2024, according to 20 Minuten. BAK Economics attributes the increase partly due to the strengthening of the Swiss franc, which recently hit a record high against the euro. 

Other factors could include rising living costs in Switzerland, as things like health insurance premiums, rent prices and even some groceries are increasing in price. So much so that shopping is 50 percent more expensive in Swiss supermarkets,  on average, compared to the country’s neighbours.

Calls to reduce tax-free limit to 50 Swiss francs

In 2025, the Swiss government cut the tax-free limit on goods being imported into Switzerland from 300 to 150 Swiss francs per person. The move aimed to deter people from cross-border shopping and protect Swiss businesses. 

Dagmar Jenni from the Swiss Retail Federation believes that while this was “a step in the right direction”, the tax-free limit should be reduced even further to just 50 Swiss francs per person. If this were to be introduced then “cross-border shopping would then decrease by about a third” and would help to protect the Swiss economy.

However, the Swiss government already rejected a proposal to lower the tax-free limit to 50 Swiss francs, arguing that it would be difficult to enforce, too restrictive for consumers, and would reduce competition for Swiss businesses.