Cost of Living in Switzerland
Switzerland is ranked the 4th most expensive place to live in Mercer’s 2009 Cost of Living survey. Of course, salaries are amongst the highest in Europe too. It is therefore essential that an expat moving to Switzerland ensures that they will be earning a salary that reflects Switzerland’s high cost of living - anything less than CHF50K a year will be a struggle.
That said, the cost of living in Switzerland may be high but you get a lot for your money. Everything works in Switzerland – the public transport is efficient, the roads are safe, there is low crime, it’s beautifully clean and extremely picturesque. It is for these reasons that Zurich and Geneva always rank in the top 5 cities to live in the world. The quality of life in Switzerland for someone earning even a reasonable amount of money is very good – better than someone on a higher salary in the UK, for example.
Restaurants, bars, and grocery stores are more expensive than almost anywhere else. Expect to pay 20-30% more on groceries in Switzerland than in surrounding countries. There are a few discount grocery stores, however these are generally frowned upon by the Swiss.
Alcohol is still relatively reasonable though due to the level of VAT and state taxes charged. VAT in Switzerland is about 8% compared to nearly 20% in Germany and France.
Housing is a huge expense for expats - expect to pay anything from CHF 1000 per month to CHF 3000 per month for a decent two bedroom apartment. This does not include water and electricity which is billed annually – so be prepared. Also, the availability of apartments is not great, especially in places like Geneva where occupancy rates are very high.
Purchasing a house is extremely difficult in Switzerland and is not recommended unless you plan to stay in Switzerland for the long term. An expats ability to purchase will depend on:
1. on their employment visa status;
2. whether they are prepared to keep the house for at least 5 years to prevent price speculation; and
3. whether they can afford the 20% minimum down payment to be paid on the total house value.
A bit of a relief comes from the low income taxes. Services are also paid for as you use them so you can definitely save some money here. For example, a sticker is to be placed on every 35l rubbish bag that is to be collected; such stickers cost CHF20 for 12 stickers.
The prices of clothes are generally 30-40% higher in Switzerland than in surrounding European countries.
That said, the cost of living in Switzerland may be high but you get a lot for your money. Everything works in Switzerland – the public transport is efficient, the roads are safe, there is low crime, it’s beautifully clean and extremely picturesque. It is for these reasons that Zurich and Geneva always rank in the top 5 cities to live in the world. The quality of life in Switzerland for someone earning even a reasonable amount of money is very good – better than someone on a higher salary in the UK, for example.
Restaurants, bars, and grocery stores are more expensive than almost anywhere else. Expect to pay 20-30% more on groceries in Switzerland than in surrounding countries. There are a few discount grocery stores, however these are generally frowned upon by the Swiss.
Alcohol is still relatively reasonable though due to the level of VAT and state taxes charged. VAT in Switzerland is about 8% compared to nearly 20% in Germany and France.
Housing is a huge expense for expats - expect to pay anything from CHF 1000 per month to CHF 3000 per month for a decent two bedroom apartment. This does not include water and electricity which is billed annually – so be prepared. Also, the availability of apartments is not great, especially in places like Geneva where occupancy rates are very high.
Purchasing a house is extremely difficult in Switzerland and is not recommended unless you plan to stay in Switzerland for the long term. An expats ability to purchase will depend on:
1. on their employment visa status;
2. whether they are prepared to keep the house for at least 5 years to prevent price speculation; and
3. whether they can afford the 20% minimum down payment to be paid on the total house value.
A bit of a relief comes from the low income taxes. Services are also paid for as you use them so you can definitely save some money here. For example, a sticker is to be placed on every 35l rubbish bag that is to be collected; such stickers cost CHF20 for 12 stickers.
The prices of clothes are generally 30-40% higher in Switzerland than in surrounding European countries.
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