How to invest in Switzerland in 2024: Our complete guide

Table of contents

1. Why invest in Switzerland?
2. When to invest in Switzerland?
3. How to invest in Switzerland?
4. What are the best investments in Switzerland?
5. How much to start investing in Switzerland?
6. Summary
7. Our recommendations for platforms and services to invest in Switzerland

Why invest in Switzerland?

Switzerland is globally recognized for its economic, political, and social stability. Investing in this country means benefiting from a favorable tax environment, a robust banking sector, attractive interest rates, and a strong currency: the Swiss Franc. Switzerland also offers a growing real estate market and a variety of financial investment opportunities.

When to invest in Switzerland?

The best time to invest was yesterday, and the second best time is today. This rule also applies to investing in Switzerland. 2024 is particularly promising due to the post-pandemic economic recovery and favorable monetary policies.

Follow key indicators

Monitor exchange rate trends, interest rates, and market trends to choose the right time to invest. Time is the best remedy against volatility.

Evaluate your personal situation

Ensure that the money you invest is not needed for your immediate needs. Consider your risk tolerance and long-term goals. For the stock market, plan not to need the invested amounts for at least five years.

Invest at any age

Whether you are 18 or 50, investing in Switzerland is an opportunity to diversify and improve your wealth. So, where to start?

How to invest in Switzerland?

1. Convert your Euros to Swiss Francs

Before investing, you will of course need Swiss Francs.

Start by opening an online bank account in Switzerland (for example, Yuh). Then use a currency converter like ibani to transfer your euros into Swiss Francs. This is very important because bank conversion fees can reduce your investment performance. Choose ibani for market-rate currency exchange with a declining margin.

2. Learn about regulations

For French and international investors, learning about cross-border regulations and choosing the right financial partners are key elements. Bilateral agreements facilitate investments, but it is important to understand the tax and regulatory specifics of each country.

3. Choose the right financial experts

Switzerland, known for its economic stability, imposes certain restrictions on non-residents, and tax advantages vary according to double taxation agreements. Working with a specialized financial advisor is recommended if you want to optimize your investment strategies and minimize risks.

What are the best investments in Switzerland?

Investing in real estate

Swiss real estate is a safe bet thanks to market stability and high demand. Cities like Geneva, Basel, and Zurich offer interesting opportunities for investors. However, it's important to note that real estate can be expensive and presents some drawbacks such as high transaction fees and tenant management.

Advantages

• Low volatility

Disadvantages

• Selling can be slow
• High costs: Acquisition and significant down payment
• Taxes: Taxation on rental value
• Leverage risk: Loss if value decreases
• Difficulty in diversifying due to large investment
• Tenant management
• Low return: Often below 5%

Investing in the stock market

Stocks

Swiss stocks are attractive for their high return potential and liquidity, especially in banking, pharmaceutical, and technology sectors. It's important to diversify your portfolio to minimize risks and capital losses.

Advantages

• Attractive long-term returns: Average annual return of 6%
• Liquidity: Quick resale and access to funds in a few days
• Simplicity: You own stocks directly without complex intermediaries
• Transparency and control: Visibility on the companies you invest in
• Sustainability: Possibility to exclude unwanted sectors (weapons, pollution, etc.)

Disadvantages

• Volatility: Values fluctuate daily, hence the need to diversify the portfolio
• Short-term risk: Stock investment is preferable over a period of at least five years

ETFs

ETFs (Exchange Traded Funds) are popular for their diversification and low cost. They allow investment in various Swiss assets with simplified management. Thanks to their auto-cleansing function, they eliminate underperforming companies, making them an ideal choice for investors seeking a diversified and passive portfolio in Switzerland.

Advantages

• Attractive long-term returns
• Diversification: Wide range of assets in a single ETF
• Ownership: You own a share of a set of financial assets
• Reduced cost: Passive management resulting in lower fees than traditional funds

Disadvantages

• Complexity: Some ETFs use complex strategies like synthetic replication, making risk assessment difficult
• It is not possible to select or exclude specific stocks in an ETF, as it is a predefined basket of stocks

Bonds

Swiss bonds are known for their security and stability, making them a solid option for investors seeking regular income. However, current yields are relatively low.

Advantages

• Stability: Bonds are generally less volatile than other investments
• Low risk: Especially with Swiss government bonds, known for their safety

Disadvantages

• Long holding period: Often requires long holding periods and high minimum investments
• Low yields: Current bond yields are low

Investing in investment funds

Investment funds offer professional management and increased diversification, ideal for investors who prefer to delegate asset management. Beware of hidden fees that can reduce net returns.

Advantages

• Diversification: Reduces risk by spreading investment across several assets
• Liquidity: Ability to sell and recover funds in a few days
• Returns: Passive funds can outperform active funds, according to Warren Buffett

Disadvantages

• Hidden fees: Complex structures leading to unexpected costs
• Questionable sustainability: Lack of control over specific investments, even in so-called "sustainable" funds

Investing in the Swiss Franc

The Swiss Franc is a safe haven currency, appreciated for its stability. Placing or keeping money in Swiss Francs can be a strategy to protect your wealth against the volatility of other currencies.

Placing money in Switzerland

Swiss bank accounts offer security and confidentiality. Using ibani to convert your euros into Swiss Francs and place them in your Swiss account allows you to avoid high bank transaction fees. You benefit from the stability of the Swiss Franc, a more reliable currency than the euro.

Investing in gold and silver

Precious metals are traditional investments in Switzerland, offering protection against inflation and portfolio diversification. However, they do not generate direct returns and involve storage costs.

Advantages

• Longevity: Historically stable value
• Security: Physical bars are safer than paper investments

Disadvantages

• Costs: Storage and insurance fees
• No real return: No income generation, depends on price increase
• Environmental and social impact: Often harmful extraction

Investing in cryptocurrencies

Switzerland, particularly the Zug region, is a hub for cryptocurrencies and blockchain technologies. Investing in cryptocurrencies in Switzerland can offer innovative and potentially lucrative opportunities, although the market is extremely volatile. Platforms like Mt Pelerin facilitate the purchase and management of cryptocurrencies, providing secure and regulated access to this emerging market.

Advantages

• Ease: Fast transactions with few regulatory constraints
• Security: Decentralized networks increasing security compared to traditional banking models
• Resilience: Cryptocurrencies can benefit from economic and political instability

Disadvantages

• High volatility: Extremely fluctuating market
• No real return: Like precious metals, they only depend on price increase

How much to start investing in Switzerland?

When starting to invest, there is no fixed amount to invest. It all depends on your means. In Switzerland, you can start with a minimum of CHF 500 to CHF 2,000. This amount allows you to buy a few shares and diversify your portfolio, thereby reducing risks. Contrary to popular belief, you do not need to be "rich" to invest.

Tips for beginners

• Diversify: Avoid putting all your money in a single company. Invest in a few local and foreign companies or a few ETFs to reduce your risk exposure.
• Invest gradually: Start with an amount you are ready to invest long-term. You can always increase your investments over time, in correlation with your income.
• Plan long-term: Stock market investments are more effective over a period of at least five years. This compensates for market fluctuations and maximizes returns.
• Use financial tools: Platforms like ibani for currency conversion and Mt Pelerin for cryptocurrency purchase can simplify and optimize your investments in Switzerland and significantly reduce your fees.

Warning: Past performance of markets and financial instruments is not an indicator of future performance.

Summary

Investing in Switzerland offers numerous opportunities thanks to the stability of the Swiss economy and market diversity. Here are some recommendations based on your goals and investment horizon.

Short term

For short-term investments, Swiss bonds and Swiss Franc bank accounts are safe options with quick liquidity. These investments secure your capital and provide quick access to funds if necessary.

Medium term

For a few years, stock market investments and ETFs can offer interesting returns while diversifying risks. Consider using currency conversion services like ibani to minimize transfer fees between your accounts.

Long term

For a long-term horizon, real estate and shares of large Swiss companies are solid choices. Investing in Swiss real estate can offer stable and secure growth, while shares of large companies like Nestlé or Novartis offer good growth potential.

Our recommendations for platforms and services to invest in Switzerland

• ibani: Use ibani to convert your euros into Swiss Francs at a lower cost before placing them in a Swiss bank account. This allows you to avoid exorbitant bank conversion fees and optimize your investments.
• Online Bank: Use a Swiss online bank without account maintenance fees to easily open and manage a Swiss Franc account from abroad.
• Mt Pelerin: For investors interested in cryptocurrencies, Mt Pelerin offers a secure platform to buy and manage your digital assets.
• Trading App: Use a dedicated trading app in Switzerland to access a wide range of financial services, including trading and asset management.
• Financial Advisors: Working with a financial advisor specialized in cross-border investments can help you optimize your strategies and minimize risks.

By informing yourself about the economic situation, choosing the right tools and best platforms, you will increase your chances of successful investments in Switzerland and seize the best opportunities to maximize and secure your investments. So, are you ready to invest in Switzerland?