Investment strategy for Cross-Border

Investing / Portfolios
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Hello everyone,

I am new on the finance world and especially on this forum. So let me know if I did anything wrong.

I’m a 23-year-old French citizen. I’m studying in Switzerland, but currently living with my parents in France (cross-border commuter status).

I’m a French tax resident, part of my parents’ household for tax purposes, and will likely remain so until I move to Switzerland in about six months.

For my first three years there, I will not have a fixed income (probably just small student jobs) while I finish my studies.

For the past few months, I’ve been seriously interested in personal finance, and I would like to validate my investment strategy given my particular situation (France, Switzerland, and cross-border status).

My current strategy is to:

  • Open a PEA (Boursobank, Fortuneo, or Boursedirect — still to decide) and invest at least €2,600 in “safe” ETFs such as MSCI World plus another index, in order to:
    • benefit as early as possible from compound interest,
    • start the clock on the tax advantage (5 years for capital gains exemption),
    • avoid having that money lose value in a Livret A savings account.
  • Open a life insurance policy (e.g., Finary Life) by investing the minimum amount to start the 8-year tax clock.

My profile:

  • Investment horizon: long term
  • Objective: make my savings work right away while limiting risk at the start
  • Current status: French tax resident, part of my parents’ household
  • Future status: resident in Switzerland (no fixed income at first)

My questions:

  1. Is my strategy relevant given my profile and cross-border situation?
  2. Will I be able to keep my PEA and life insurance policy if I become a Swiss tax resident? What would be the tax consequences?
  3. Are there alternative investment options better suited to someone who will soon be leaving France? I have heard that a PEA is not the best option since the capital gains are not taxed in Switzerland
  4. Is it more advantageous to invest now in France, or wait until I move to Switzerland to take advantage of other products/benefits?
  5. How can I optimize my choices so as not to lose the tax advantages tied to these investments if I change tax residence?
  6. Are there any particular strategies or common mistakes to avoid in my situation?

Thanks in advance for your advice and feedback!!!

Any guidance will help me convince my parents of my approach and address their questions.

PS: I can change the subject title and associated tag :grin:

1 Like
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If you’re sure you will be moving to Switzerland, the only thing I’d do is open both the PEA and potentially life insurance. That said I wouldn’t contribute to them besides opening it (to start the clock), since they bring zero advantages for a swiss resident.

That way if you end up moving back to France you already have the accounts. If you end up staying long term, I’d then close them to avoid the tax reporting hassle.

Anything else I’d do things based on being a swiss tax resident (so regular trading account, etc.).

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Why?

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It’s a good investment vehicle in France, it’s fairly standard advice (there’s some tax advantage).

Nothing to do with the swiss life insurance, they have low fee and good investment universe and no lockup.

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Great thank you @nabalzbhf for this answer.

Would you have any sources of information to recommend me to better know the different possibilities regarding my status? (YouTube channel, other forum, groups, …)

I am new on the thing but highly interested :smiling_face:

Thank you again

6

This forum had pretty good information for immigrating to Switzerland.

By the way while you’re still studying I wouldn’t recommend on focusing on wealth accumulation yet. Investing in yourself and experiences is often way more valuable at this point (and while you’re studying whatever you can save is often insignificant compared to what you’ll save later while getting stable income).

(Though things like knowing how to do budgeting is still important)

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Agree with this 100%. I’d say compounded benefits of self-investment and experience at a young age will be far greater than an investment in an index tracker.

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