14 ways to use b-sharpe for your currency exchange in 2022

b-sharpe offers a 100% online currency exchange service. Converting your salary, investing in property, sending money to your child studying abroad… Here are the 14 most popular ways our customers use our service (and their benefits)!

Convert your salary at the best rate

#1 Converting your salary (paid in Swiss francs) into euros

Individuals paid in Swiss francs (most of whom have a CHF account) use the b-sharpe currency exchange service (with no monthly fees) to convert their salary into euros every month to cover their day-to-day expenses.

In practice, here’s how an individual can adjust their salary using b-sharpe:

1. The employer pays your salary into your Swiss bank account in CHF.
2. Please transfer the amount in CHF that you wish to exchange for euros to b-sharpe’s CHF account.
3. b-sharpe converts the currency and transfers (free of charge) the euros to your euro account in France or elsewhere.

#2 Receive your salary directly in euros

If you want to save time, or if you don’t have a Swiss franc bank account in Switzerland, your employer can pay your salary directly into b-sharpe’s Swiss franc account.

In practice, this is how it works:

1. The employer pays the full salary into b-sharpe’s CHF account.
2. b-sharpe converts all CHF into euros and transfers them (free of charge) to your euro account in France or elsewhere.

Buying, selling or managing property in foreign currencies

#3 Changing your personal contribution

When buying a flat or a house in France, Portugal, Israel or elsewhere, prospective owners usually have a deposit. In some cases, this deposit is in a different currency to that of the property being purchased: it is therefore essential to exchange currency. 

This generally involves substantial sums of money. The most common scenario we encounter at b-sharpe is the purchase of a property in euros in an EU country by someone who lives in Switzerland or whose income is in Swiss francs.

In practice, here’s how to adjust your personal contribution when financing a property:

1. You transfer the amount to be exchanged (e.g. in CHF) to a b-sharpe CHF account.
2. b-sharpe converts the amount into euros using the EUR/CHF exchange rate, and transfers the euros either to your account (in France, for example) or directly to your solicitor. As there are no monthly fees, b-sharpe can be used for a single transaction at no extra cost.

Good to know: You can lock in the exchange rate before the conversion by contacting our customer service team!

#4 Taxing capital gains realised on the sale of a property

You are selling a property and the sale is being conducted in a currency that isn’t necessarily the one you need. You therefore wish to exchange this money, either to purchase another property or because you need cash in a different currency. 

The most common scenario we encounter at b-sharpe is as follows: the sale of a property in Switzerland and the use of the proceeds from the sale to purchase a property in France, Portugal or another European Union country.

In practice, this is how it works:

1. When the property is sold, the solicitor will transfer the money into your account.
2. If there is a mortgage, the bank recovers the outstanding principal and any other amounts due to settle the loan.
3. You transfer the capital gains (e.g. in CHF) to b-sharpe’s CHF account to convert them into euros.
4. b-sharpe converts Swiss francs into euros and transfers the money to your euro account. As there are no monthly fees, b-sharpe can be used for a single transaction at no extra cost.

#5 Repaying a mortgage in foreign currency

Do you have a foreign currency mortgage with a bank in Switzerland, France or another European Union country? Would you like to pay off this mortgage using savings held in a different currency, such as euros? As the mortgage is in Swiss francs, you will need to convert those euros into Swiss francs in order to repay the mortgage.

The repayment of a foreign-currency mortgage works as follows (in the case of a property in France):

1 – The sale of the flat is to be settled in euros. The buyers are to pay the amount at the solicitor’s office.

• Case 1: There is a mortgage or a lender’s lien (PPD). The solicitor is required to transfer the funds to the bank as soon as the sale is completed. In this case, you have no option to exchange the money yourself, as the funds do not even pass through your account.
  
• Case 2: The guarantee takes the form of a deposit (accounting for 80% of loans). In this case, the solicitor must transfer the money to one of your accounts, regardless of whether that account is with the lending bank or not. In most cases, the bank will strongly encourage you to carry out the exchange at its own branch, but you are under no obligation to do so.

2 – You provide the solicitor with a bank account in euros into which the proceeds of the sale are to be paid.

3 – You make a transfer to b-sharpe’s euro account.

4 – b-sharpe converts your euros into Swiss francs and transfers the Swiss francs to the account you have provided.

5 – You repay the loan to your bank.

Taxation and tax refunds

#6 Converting the amount of tax refunded as part of a claim for a tax adjustment

If you work in Geneva, you are subject to tax at source (tax is deducted directly from your salary each month). Before 31 March, you can apply for a tax adjustment in respect of the previous year’s income tax.

This adjustment can be made, for example, under the quasi-resident status (a specific status that allows eligible foreign resident or cross-border taxpayers to benefit from more favourable tax rates and deductions), or in a more standard context (adjustment linked to the tax scale, the buy-back of a 2nd pillar pension or the subscription to a 3rd pillar pension, for example). 

Depending on the circumstances, a request for a correction may result in a significant refund of tax paid. In some cases, the full amount of tax is even refunded.

In practice:

1. Please submit your request for a correction to the Cantonal Tax Office.
2. The Cantonal Tax Office will refund the amount to your account in Swiss francs.
3. Please transfer the money to the b-sharpe account.
4. b-sharpe converts the currency into euros and transfers the money to a euro account in the country of your choice.

Moving abroad, studying, and settling in Switzerland (or another country)

#7 Having local currency to hand when moving to Switzerland

Expatriates moving to Switzerland generally need Swiss francs to cover their initial living expenses. In some cases, they may also need larger sums of money, for example to buy a car upon arrival.

As they are coming from abroad, these expats will need Swiss francs. If they use their home bank, they will be charged substantial currency exchange fees. It is therefore advisable to compare currency exchange services, particularly those offering an online service.

How do you go about switching funds when you move to Switzerland:

1. A few days before you arrive, please register with b-sharpe.
2. When you arrive in Switzerland, transfer the GBP you wish to exchange for Swiss francs to a b-sharpe account (in pounds sterling, for example).
3. b-sharpe converts British pounds into Swiss francs and transfers them to your CHF account at your Swiss bank.

#8 Sending money to your child studying abroad

Has your child moved abroad to study? Congratulations! Many parents send money to their children who are studying abroad, whether to cover tuition fees or daily expenses such as rent or food.

Here are the steps to follow to transfer funds to your child who is studying abroad:

1. Sign up on b-sharpe.
2. Transfer the amount you wish to convert to the b-sharpe account and let b-sharpe know which currency you would like to receive.
3. Once we have received your payment, b-sharpe will convert the currency and transfer the funds to the specified account. If you need to pay tuition fees, simply provide b-sharpe with the school’s bank details (IBAN or account number), and b-sharpe will take care of everything!

Withdrawal and repatriation of 2nd or 3rd pillar funds

#9 Changing your pension

Some employees of Swiss companies decide to retire in a country other than Switzerland. These individuals will receive all or part of their AVS pension in CHF and will need to exchange the currency for expenses in the country where they are retiring. 

Furthermore, if the second pillar is taken in the form of a pension, the same will apply. This therefore raises the issue of exchanging these Swiss francs into the local currency. As a pensioner, how can one repatriate their AVS/LPP pension in order to exchange it into a currency other than CHF?

1. Once you have received your pension in CHF into your Swiss bank account, please transfer the funds to b-sharpe’s CHF account.
2. Once the money has been received, b-sharpe converts it into euros.
3. b-sharpe transfers euros free of charge to a euro account at a bank in France or in another European Union country (the conversion may be made into a different currency and the transfer to another country depending on the pensioner’s needs and place of residence. In this case, transfer fees are reduced – international SWIFT transfer).

#10 Converting funds transferred from a 2nd or 3rd pillar scheme

When they retire, some pensioners will choose to receive their second-pillar pension as a lump sum rather than an annuity. In this case, if the pensioner lives outside Switzerland, they will also need to convert the Swiss francs from this retirement lump sum into another currency. This requirement is exactly the same for a third-pillar pension that the pensioner may have built up during their working life.

How can I repatriate and convert my 2nd or 3rd pillar pension into a currency other than the Swiss franc?

1. The pension fund or insurance company will transfer the money to a Swiss franc account
2. Once you have received the funds, please transfer the Swiss francs to be exchanged to b-sharpe’s Swiss franc account.
3. Once we have received your money, b-sharpe converts the Swiss francs into euros and transfers them to your euro account (the transaction can also be carried out in another currency, to another account, or in another country).

Inheritance received from abroad

#11 Changing the amount received as part of an inheritance

In some cases, you may receive an inheritance following the death of a family member living abroad (assuming the amount is in a currency other than the one you normally use).

In this case, using a service such as b-sharpe can be particularly useful, as it allows you to receive payments into your multi-currency account, thereby preventing funds in one currency from being paid into an account denominated in another currency.

Here is how the process works for an inheritance received from abroad, using the example of a person living in Switzerland who receives an inheritance from a European Union country:

1. The inheritance is paid into the heir’s account in euros.
2. The beneficiary transfers the amount they wish to exchange into Swiss francs to b-sharpe’s account.
3. b-sharpe converts euros to Swiss francs.
4. b-sharpe transfers the amount of the converted inheritance to the beneficiary’s CHF account free of charge.

Buying a vehicle abroad in a different currency

#12 Buying a vehicle (car, motorbike) abroad

It is becoming increasingly worthwhile to buy a car through an import scheme. If the buyer does not use an importer, they will have to handle the currency exchange themselves to pay the seller. As the sums involved are substantial, exchange fees can be significantly high, and using a financial intermediary such as b-sharpe will enable you to make substantial savings.

Here is how a currency exchange transaction might work when buying a vehicle abroad (in the case of someone living in Switzerland who buys a car in Austria to be paid for in euros):

1. The buyer contacts b-sharpe and agrees on the EUR/CHF exchange rate in advance;
2. The buyer transfers the Swiss francs to b-sharpe’s CHF account;
3. b-sharpe converts the amount.
4. b-sharpe transfers the euros to the seller’s account if the seller is a business, or to the buyer’s euro account if the buyer is a private individual.

Export/import company

#13 Set a supplier’s currency

As part of their business operations, SMEs sometimes have to juggle multiple currencies when paying their suppliers. In this context, it may be worth using b-sharpe’s services, which, thanks to a multi-currency account, allow invoices to be paid in almost any currency.

Here’s how an SME can use b-sharpe to pay its invoices in foreign currencies:

1. The company sends its supplier’s billing details (amount, currency, invoice number, IBAN, etc.) to b-sharpe. Let’s say, for example, that a Swiss SME wants to pay an invoice in US dollars to a company in the United States.
2. The company transfers the funds (in this case, Swiss francs to be converted into dollars) to b-sharpe’s CHF account.
3. b-sharpe handles currency exchange.
4. b-sharpe handles the payment on behalf of the client company by transferring the dollars to the supplier’s account.
5. The supplier will therefore see a payment in dollars, made by b-sharpe, showing the SME’s details and the invoice reference.

#14 Raising capital for a company you are setting up

As part of an expansion of its business operations, a company may wish to establish a presence in a particular country. In most cases, the company will need to raise capital, which must be in the local currency.

Here is how to set up a company in Switzerland and raise capital (in the case of a French company establishing itself in Switzerland with a share capital of CHF 400,000):

1. The French company contacts b-sharpe in advance and informs them of the amount in Swiss francs it wishes to receive. This is because, whilst the company’s share capital is known, the notary will charge fees that may be included in the amount to be transferred.
2. b-sharpe and the company agree on the exchange rate to be applied, and at the same time b-sharpe informs the company of the amount in euros that it is required to transfer.
3. The company transfers the euros to b-sharpe’s euro account, and upon receipt, b-sharpe converts them into Swiss francs.
4. b-sharpe transfers the Swiss francs free of charge to the account of the notary in Switzerland responsible for the formation of the capital.

In short, there are many situations in which you might need to exchange currency. Take the time to find out more and compare the various currency exchange options available to you. If you use our service for reasons other than those mentioned in this article, please do let us know in the comments!