Swiss customs duty-free purchases: limits and consequences for border crossers (cross-border guide)

Context

In a nutshell

• The duty-free allowance for purchases in Switzerland has been increased to €10,000 for new border crossers.
• Old frontiers have an exemption of €7,500 until 2033.
• The declaration of goods purchased in Switzerland is mandatory for border guards.

Swiss customs duty-free purchases: limits and consequences for border crossers

The customs exemption for purchases in Switzerland is a very important topic for Ticino border workers. As of 1 January 2023, the duty-free allowance for new border crossers has been increased to €10,000. This means that they can purchase goods in Switzerland up to a value of €10,000 without having to pay customs taxes.

However, old frontiers have an exemption of €7,500 until 2033. This means that they can purchase goods in Switzerland up to a value of €7,500 without having to pay customs taxes.

The declaration of goods purchased in Switzerland is mandatory for border crossers. This means that they must declare all assets they have purchased in Switzerland, regardless of their value. The declaration must be submitted by 31 March of the year following the purchase.

Concrete example

Let's imagine that you are a frontier worker living in Bellinzona and you bought a €8,000 watch in Switzerland. In this case, we should not pay customs taxes because the purchase is less than the €10,000 duty-free allowance.

However, if we had

Operational details

The duty-free allowance for purchases in Switzerland has been increased to €10,000 for new border crossers. This means that border guards can buy goods in Switzerland up to €10,000 without having to pay customs taxes. Old border crossers, on the other hand, have an exemption of €7,500 until 2033.

This amendment entered into force on 1 January 2023, based on the Swiss-EU Customs Agreement of 2014. The duty-free allowance is a benefit for border guards who reside in Switzerland and purchase goods in Switzerland for personal use.

For example, a frontier worker who lives in Lugano and buys a second-hand car in Switzerland with a value of €8,000 will not have to pay customs taxes, since the car is purchased within the customs exemption of €10,000. However, if you were to buy a car with a value of €12,000, you would have to pay customs taxes on the excess of €2,000.

Old border crossers, on the other hand, have an exemption of €7,500 until 2033. This means that if a frontier worker purchased an asset in Switzerland before 2023 and the value of the asset is less than €7,500, he will not have to pay customs taxes even if the value of the asset exceeds the €10,000 duty-free allowance.

Here is an operational checklist for border crossers buying goods in Switzerland:

• Check if you are subject to the customs exemption or not
• Check if the goods purchased are within the €10,000 duty-free allowance
• Check if the property purchased is for personal use

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Key points

Duty-free purchases Switzerland: limits and consequences for border crossers Are you a border crosser wishing to purchase goods in Switzerland? It is important to know that the declaration of goods purchased in Switzerland is mandatory. This means that border guards must declare all goods purchased in Switzerland at the time of import. In case of omission or misrepresentation, border crossers may be subject to tax penalties. # ## Duty-Free Limits Duty-free is an import limit that is not subject to taxes or duties. In Switzerland, the duty-free allowance is set at 300 Swiss francs (CHF) for border crossings. This means that border crossers can import goods up to a value of CHF 300 without having to pay any taxes or duties. For example, if a border worker buys a 200 CHF watch and a pair of 100 CHF shoes in Switzerland, they will not be subject to taxes or duties because the total amount does not exceed the 300 CHF duty-free allowance. # ## The consequences of the customs exemption exceeded However, if border crossers exceed the customs exemption, they will have to pay the related taxes and duties. For example, if a border worker buys a 500 CHF watch and a pair of 100 CHF shoes in Switzerland, they will have to pay taxes and duties related to the value of 200 CHF (500 CHF - 300 CHF). According to the Swiss Federal Law of 30 April 1998 (LFD), border crossers who exceed the duty-free allowance are subject to a tariff of To avoid exceeding the duty-free allowance and having to pay taxes or duties, border guards must: Check the value of goods purchased in Switzerland Check whether the value of goods purchased in Switzerland exceeds the duty-free allowance Calculate the import tariff of 10% on the higher value of the duty-free allowance Declare goods purchased in Switzerland at the time of importation ## # Conclusions The Swiss duty-free allowance is an import limit that is not subject to taxes or duties. Border guards wishing to purchase goods in Switzerland must follow the same rules and procedures for customs relief. Border crossings that exceed the duty-free allowance are subject to an import tariff of 10% on the higher value of the duty-free allowance. To avoid exceeding the duty-free allowance and having to pay taxes or duties, border guards must check the value of goods purchased in Switzerland, check whether the value of goods purchased in Switzerland exceeds the duty-free allowance and calculate the import tariff of 10% on the higher value of the duty-free allowance.