Shopping outside of Switzerland saves residents 63% on food products

Is cross-border shopping actually worth it? A new Wise study reveals exactly how much Swiss residents can save on food, cosmetics, and luxury goods. 

Germany leads in cross-border shopping savings

Any wise shopper knows that to get the best deals, you need to shop around. In Switzerland, this means taking advantage of cross-border shopping - otherwise known as shopping tourism (Einkaufstourismus).

Wise, a financial services provider, has done some further digging on exactly which items are cheaper and where (so that you don’t have to!). The company compared product prices for groceries, drugstore items, sports shoes, electronics, and luxury goods in Switzerland, Germany, France, and Italy.

When comparing grocery prices in Switzerland vs Germany, France, and Italy, the results revealed that food items can be up to a whopping 63 percent cheaper abroad - sorry, Migros and Coop!

For example, a 250-gram packet of butter is roughly 63 percent less in Germany, a box of 10 eggs is around 63 percent less in France, and two kilograms of apples turn out to be 62 percent cheaper in Italy.

In total, Germany offers the biggest price savings on food, with average savings working out at around 40 percent, according to 20 Minuten. 

Is it cheaper to buy drugstore items abroad? 

Deals extend beyond the supermarket, with certain branded products also being cheaper to buy elsewhere. For example, a pair of Puma RS Surge Hairy Suede trainers is 28 percent cheaper in Italy, and a pair of Adidas Ultraboost 5 is 16 percent less in Italy, Germany and France.

When it comes to drugstore items like skincare, makeup or household products, the study found that many items actually cost around 13 percent more to buy abroad compared to in Switzerland. Germany is the exception, where drugstore products are roughly 17 percent cheaper. 

Wise revealed that when buying luxury items, the results can be mixed and savings can “be found sporadically”. For example, buying a Hermès Arçon Slim bag is roughly 7 percent cheaper (around 300 Swiss francs) when bought abroad and after Value Added Tax (VAT) is adjusted. An Omega Speedmaster Professional Moonwatch is around 200 francs less in Germany.

Why is shopping outside Switzerland so much cheaper?

The study by Wise also examined why prices are lower in neighbouring countries and found three reasons. The first reason is the “significantly higher price level in Switzerland”, explains 20 Minuten, with the price level index for an average shopping basket in Switzerland sitting at 184, whereas in Germany it is 109.

The gap between the two countries has been growing: 10 years ago, it was 176 in Switzerland and 107 in Germany.

Anyone working in Switzerland will also benefit from a strong Swiss franc, which has appreciated around 16 percent against the euro in the last five years. Essentially, Swiss francs can now buy you more when you shop abroad.

Lastly, Swiss shoppers can claim a full or partial VAT refund when shopping in Germany or other neighbouring EU countries. VAT on most general products in Germany, for example, is 19 percent, whereas in Switzerland it’s much lower at 8,1 percent. Residents bringing things back will benefit from paying the lower Swiss rate at the border.

If your total purchases are under 150 francs per person, per day, you do not have to pay Swiss VAT. The Federal Office for Customs and Border Security (BAZG) also recently updated its customs clearance app, QuickZoll, which can make things quicker at the border.