Currency planning: CHF income against foreign-currency assets
If you earn in CHF but hold assets or obligations abroad, plan the currency match before the product. Match short-term obligations (home-country mortgage, school fees) with same-currency cash, keep long-term investments globally diversified and unhedged on the equity side, and use a low-cost FX provider (Wise, Revolut, Interactive Brokers) instead of retail bank rates.
Overview
FX losses on retail bank transfers and unhedged short-term obligations quietly cost expats thousands of francs a year. A simple set of rules removes most of the waste without complex hedging.
Structuring currency exposure
- 1
List currency mismatches
Income (mostly CHF), assets (CHF, EUR, USD, GBP, home currency), obligations (CHF rent, CHF tax, EUR/USD mortgage, school fees, family support). Mark each row as long or short the currency.
- 2
Match short-term obligations
If you owe EUR 50,000 in school fees over 4 years, hold EUR cash or short EUR bonds for that amount. Currency matching beats hedging for known nominal obligations.
- 3
Keep equity globally diversified, unhedged
Currency is part of equity diversification - a global ETF carries USD, EUR, JPY and EM exposure naturally. Hedging equity to CHF adds cost and tracking error without consistent benefit.
- 4
Hedge bonds back to CHF
Foreign-currency bond returns are dominated by FX moves for a Swiss-CHF investor. CHF-hedged share classes (often labelled CHF Hedged or HCHF) restore the role of bonds as portfolio ballast.
- 5
Use low-cost FX providers
Wise (formerly TransferWise), Revolut, IBKR and some neobanks (Yuh, Neon) offer near-interbank rates. Traditional Swiss banks often add 1.5-3% spread plus a fixed fee - costly on regular transfers.
- 6
Plan home-country accounts
Keep at least one home-country account open after moving - many countries require it for tax refunds, pension payments and property transactions. Confirm the bank accepts non-resident clients.
Frequently asked questions
Should I keep my foreign mortgage after moving to Switzerland?+
Often yes, especially if rented out and self-financing. Match the mortgage currency with the rental income currency and report the property and income in your Swiss return (exempt with progression in most treaties).
Are FX gains taxable in Switzerland?+
For private investors, FX gains on personal investments are part of the general capital-gains treatment - usually tax-free if you are not classified as a professional trader. FX losses are correspondingly not deductible.
What's the cheapest way to move money out of Switzerland?+
Wise and Interactive Brokers usually beat traditional banks on EUR/USD/GBP transfers - typical saving is 1-2% of the amount. For larger amounts (CHF 100,000+) negotiate the FX spread directly with your bank's relationship manager.
Should I worry about CHF strengthening?+
A long-term Swiss resident with most spending in CHF is less exposed than it feels: CHF strength reduces the CHF value of foreign assets but also reduces import prices and the cost of travel. Match currency to spending and the risk shrinks.