Receiving a 13th salary and a year-end bonus in Swiss francs is a common situation for many people who earn their income in CHF. However, in order to use these funds in euros, they must be converted—a process that may appear simple but can involve hidden challenges related to costs, timing, and regulations.
This guide provides a clear and professional overview to help you manage this step effectively and make the most of every franc you earn.
Taxation and fiscal impact on the 13th salary and bonuses
The 13th salary and year-end bonuses are considered employment income and are generally subject to taxation at source in the country where the income is earned. The amount withheld typically depends on factors such as total income, family situation, and local tax regulations. When income is earned in one currency but used in another, it is important to understand how taxation and reporting obligations may apply. Properly declaring income and any applicable tax credits is essential to avoid potential issues such as double taxation. Tax regulations can vary depending on individual circumstances, so it is advisable to remain informed and consult official guidance when necessary.How CHF to EUR conversion works: methods and timing
Conversion options
The main ones are:
- Traditional banks: these institutions generally apply fixed transaction fees (for example €5–10 per operation) and exchange rate spreads between 1% and 2%, which can significantly reduce the amount received.
- Physical exchange offices: usually the least convenient option from a cost perspective. The spread can exceed 3% and fixed commissions are common.
- Online currency exchange services, such as Moneyswapp.com: these specialized platforms offer much lower spreads (around 0.2%–0.5%) and often no fixed fees, making the conversion more convenient.
- Multi-currency accounts: some banks and fintech providers offer accounts that allow you to hold balances in Swiss francs and convert them into euros when the exchange rate becomes favorable, enabling a more strategic management of funds.
Timing
It is often beneficial to plan the conversion by monitoring the CHF/EUR exchange rate in the weeks before converting your funds in order to maximize the value obtained. Exchange rates fluctuate constantly, so keeping an eye on market movements can help identify more favorable moments for conversion.
For this reason, following dedicated market analysis—such as our Currency Watch updates—can help you better understand exchange rate trends and identify potentially advantageous moments to convert.
Costs and fees to consider
Currency conversion is almost always accompanied by hidden costs that can significantly affect the final amount received. The most important ones include:
- Bank fees and exchange rate spreads: within traditional financial services, fixed transaction fees of €5–10 may apply, while the exchange rate spread can range between 1% and 2%. This means that for every 5,000 CHF converted, between €50 and €100 could be lost purely due to costs. Online exchange platforms, on the other hand, typically offer much more competitive spreads—around 0.2%–0.5%—and often no fixed fees.
- Credit and prepaid card costs: using cards for withdrawals or payments in foreign currencies may involve additional fees, typically between 1.5% and 2%, sometimes combined with ATM withdrawal charges.
To reduce these costs, it is generally advisable to use transparent online services or multi-currency accounts that allow you to choose the timing of conversions with lower overall fees.
Recommended strategies for converting year-end bonuses and 13th salaries
Adopting a strategic approach can help maximize the euro value of your 13th salary and year-end bonus, taking into account market conditions and conversion costs.
First of all, it is important to monitor the CHF/EUR exchange rate, as even small fluctuations can translate into significant differences in the final amount received. For example, moving from an exchange rate of 1 CHF = 1.06 EUR to 1.08 EUR means gaining about €20 more for every 1,000 CHF converted.
While waiting for a more favorable rate, it may be useful to rely on accounts or services that allow you to hold funds in CHF without converting them immediately.
When the moment to convert arrives, choosing low-cost online platforms or multi-currency accounts can help avoid high spreads and fixed transaction fees.
Another good practice is to concentrate the conversion into a few key moments (for example a single conversion for the 13th salary or for the bonus), reducing the cumulative impact of fixed transaction fees.
Practical numerical examples
To better understand the impact of different conversion choices, here are two concrete examples:
Example 1: Converting a 13th salary of 5,000 CHF
Suppose you need to convert a 13th salary of 5,000 CHF, with a real market exchange rate (before fees and spreads) of 1 CHF = 1.075 EUR.
With a traditional bank applying a fixed fee of €10 and a spread of 1.5%, the final amount received would be approximately €5,315 after costs.
Using an online currency exchange platform with a spread of about 0.25 % and no fixed fees, the final amount could be around €5.363.
The net difference would therefore be approximately €48. While this may seem modest for a single operation, it can become significant when repeated multiple times throughout the year.
Example 2: Year-end bonus of 10,000 CHF using a multi-currency account
With a multi-currency account, it is possible to hold the funds in CHF and choose to convert them at a more favorable moment.
For example, if the exchange rate improves from 1.06 EUR per CHF to 1.08 EUR per CHF, converting immediately at 1.06 would generate €10,600, while waiting for the rate to reach 1.08 would result in €10,800.
The €200 difference represents additional value obtained simply by timing the conversion more strategically.
With this guide, readers now have practical tools and advice to convert their 13th salary and year-end bonus more effectively, reducing costs and exchange losses while maximizing the net value of their income in CHF.
For any currency exchange needs, rely on the fast and convenient service of Moneyswapp.com, a trusted solution for managing CHF to EUR conversions.
You can also explore our net salary calculator, a useful tool for anyone evaluating a job offer with income in Swiss francs.