Cost of Living in Switzerland
Switzerland is nearly as famous for it's exorbitant cost of living as it is for its ski slopes and watchmaking. According to the 2011 Mercer Cost of Living Survey, three of the nation's cities (Geneva, Zurich and Bern) were ranked within the top 20 most expensive destinations in the world.
Needless to say, expat life in a Swiss urban centre is expensive, and not necessarily so much cheaper than in a rural area. On the flip side, salaries in Switzerland are also among the highest in the world, and the quality of living is on par: a study by Credit Suisse even designated Zurich as the city affording workers the highest wages across the globe – with Geneva a close second.
Furthermore, expats living in Switzerland will find that they do in fact 'get their money's worth'. Everything is efficient, the infrastructure is designed for the general welfare of the people, and public spaces are incredibly beautiful and well-maintained.
Still, those planning on moving to Switzerland should educate themselves about what kind of cost of living they can anticipate, and should negotiate their contract accordingly. Watch out for unforeseen expenses and strange compulsory taxes, you're likely to need to finance aspects of your life you took for granted in your home country.
Furthermore, keep in mind that every canton, region and even city, town or village has different tax percentages and fees for specific things.
The Swiss are a population of renters: nearly 70 percent of people are tenants rather than owners, and as a result a pointed shortage of apartments in both cities and towns has developed. The situation in Zurich and Geneva is especially stark, and
the stiff competition has naturally resulted in sky-rocketing rental prices. Expats should expect to fork out at least 20 percent of their salary on accommodation in Switzerland.
Estimated accommodation prices in Switzerland in 2011
Furthermore, in many cases three month's deposit is expected up-front to secure a rental. So put the pennies in the piggy bank in preparation.
Budget between CHF 300 and CHF 350 per month for electricity and gas.
The novelty of paying for the amount of trash you produce wears off quicker than you can say “recycle”. In Switzerland, special garbage bags are required for trash collection, and these bags are priced according to their size. Thus, if you produce more waste, you pay more. Recycling is free, and expats who didn't consider themselves environmentally friendly before can count on a “greener” life in Switzerland.
Prices for trash/refuse bags in 2010
Aside from high housing prices, expats may be surprised to find that health insurance will eat up a large amount of the bank balance. Private health insurance in Switzerland is compulsory, and expensive to boot. Premiums are based on geographic area rather than salary, so even if you don't make a CEO's wages, you still may be paying the same premium as a CEO. The government does grant cash subsidies to those who find the monthly premium is equal to or above 8 percent of their monthly salary. On average, expect to pay 4,200 CHF for health insurance annually.
Keep in mind that all family members will need to be insured separately, and that discounts are granted to young adults and children.
Switzerland has an extensive and well-integrated system of public transportation; however, the trains, buses and boats are expensive to use. If you live in an urban centre and plan on utilising one or more of these modes of
transit regularly, it's recommended you purchase a “Swiss Half Fare” card for 165 CHF. This card is valid for one year and entitles you to (up to) a 50 per cent discount on train, mountain-train, boat, bus and cable-car travel.
One good way to avoid extensive transportation costs is to use a bicycle, a popular and free mode of transit in Switzerland. Keep in mind that you'll need to purchase an annual licence for a minimal fee. Don't write this petty purchase off though, fines for those cyclists caught without licences is a whopping 40 CHF.
The cost of owning a car in Switzerland is mushroomed by a number of supplementary fees. In addition to the cost of importing, buying or leasing a vehicle, you'll need to pay for monthly insurance, for canton tax, for a parking permit, for a highway sticker and for petrol. Costs vary depending on the area in which you live, but anticipate spending between 150 and 300 CHF per week on your car. Needless to say, if you can live without one, do so.
Finally, something that's not expensive – kind of. The Swiss education system is renowned for its high standard and is, wait for it, FREE. That said, the teaching language will reflect the primary language of the respective canton (either German, French, Italian or Romansh). Some bilingual and even trilingual schools do exist, but tuition at these institutions can be as much as 25,000 CHF per year.
Additionally, those expats who wish to send their children to international schools that uphold their home country curriculum and teaching language should anticipate astronomical fees. Price increases as students age, and can peak at over 35,000 CHF per year.
Try and convince you employer to shoulder this expense, if at all possible.
Restaurants, bars, and grocery stores are more expensive than almost anywhere else in the world. Expect to pay 20 to30 per cent 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. In fact, purchasing non-Swiss products, even if they are cheaper, is frowned upon by the Swiss.
Alcohol is still relatively reasonably priced due to the level of VAT and state taxes charged. VAT in Switzerland is about 8 percent, compared to nearly 20 per cent in Germany and France.
Needless to say, expat life in a Swiss urban centre is expensive, and not necessarily so much cheaper than in a rural area. On the flip side, salaries in Switzerland are also among the highest in the world, and the quality of living is on par: a study by Credit Suisse even designated Zurich as the city affording workers the highest wages across the globe – with Geneva a close second.
Furthermore, expats living in Switzerland will find that they do in fact 'get their money's worth'. Everything is efficient, the infrastructure is designed for the general welfare of the people, and public spaces are incredibly beautiful and well-maintained.
Still, those planning on moving to Switzerland should educate themselves about what kind of cost of living they can anticipate, and should negotiate their contract accordingly. Watch out for unforeseen expenses and strange compulsory taxes, you're likely to need to finance aspects of your life you took for granted in your home country.
Furthermore, keep in mind that every canton, region and even city, town or village has different tax percentages and fees for specific things.
Cost of accommodation in Switzerland
The Swiss are a population of renters: nearly 70 percent of people are tenants rather than owners, and as a result a pointed shortage of apartments in both cities and towns has developed. The situation in Zurich and Geneva is especially stark, and
the stiff competition has naturally resulted in sky-rocketing rental prices. Expats should expect to fork out at least 20 percent of their salary on accommodation in Switzerland.Estimated accommodation prices in Switzerland in 2011
- CHF 1,500 for a small apartment in an unglamorous area
- CHF 3,000 for an upmarket city apartment
- CHF 5,000 for a larger house in a more suburban setting
Furthermore, in many cases three month's deposit is expected up-front to secure a rental. So put the pennies in the piggy bank in preparation.
Budget between CHF 300 and CHF 350 per month for electricity and gas.
Paying for trash/waste/refuse in Switzerland
The novelty of paying for the amount of trash you produce wears off quicker than you can say “recycle”. In Switzerland, special garbage bags are required for trash collection, and these bags are priced according to their size. Thus, if you produce more waste, you pay more. Recycling is free, and expats who didn't consider themselves environmentally friendly before can count on a “greener” life in Switzerland.
Prices for trash/refuse bags in 2010
- 17-litre bag: 9 CHF/ 10 bags
- 35-litre bag: 17 CHF/ 10 bags
- 60-litre bag: 26 CHF/ 10 bags
- 110-litre bags: 20 CHF/ 5 bags (most comparable to an average American garbage bag)
Cost of health insurance in Switzerland
Aside from high housing prices, expats may be surprised to find that health insurance will eat up a large amount of the bank balance. Private health insurance in Switzerland is compulsory, and expensive to boot. Premiums are based on geographic area rather than salary, so even if you don't make a CEO's wages, you still may be paying the same premium as a CEO. The government does grant cash subsidies to those who find the monthly premium is equal to or above 8 percent of their monthly salary. On average, expect to pay 4,200 CHF for health insurance annually.
Keep in mind that all family members will need to be insured separately, and that discounts are granted to young adults and children.
Cost of transport in Switzerland
Switzerland has an extensive and well-integrated system of public transportation; however, the trains, buses and boats are expensive to use. If you live in an urban centre and plan on utilising one or more of these modes of
transit regularly, it's recommended you purchase a “Swiss Half Fare” card for 165 CHF. This card is valid for one year and entitles you to (up to) a 50 per cent discount on train, mountain-train, boat, bus and cable-car travel.One good way to avoid extensive transportation costs is to use a bicycle, a popular and free mode of transit in Switzerland. Keep in mind that you'll need to purchase an annual licence for a minimal fee. Don't write this petty purchase off though, fines for those cyclists caught without licences is a whopping 40 CHF.
The cost of owning a car in Switzerland is mushroomed by a number of supplementary fees. In addition to the cost of importing, buying or leasing a vehicle, you'll need to pay for monthly insurance, for canton tax, for a parking permit, for a highway sticker and for petrol. Costs vary depending on the area in which you live, but anticipate spending between 150 and 300 CHF per week on your car. Needless to say, if you can live without one, do so.
Cost of education in Switzerland
Finally, something that's not expensive – kind of. The Swiss education system is renowned for its high standard and is, wait for it, FREE. That said, the teaching language will reflect the primary language of the respective canton (either German, French, Italian or Romansh). Some bilingual and even trilingual schools do exist, but tuition at these institutions can be as much as 25,000 CHF per year.
Additionally, those expats who wish to send their children to international schools that uphold their home country curriculum and teaching language should anticipate astronomical fees. Price increases as students age, and can peak at over 35,000 CHF per year.
Try and convince you employer to shoulder this expense, if at all possible.
Cost of food in Switzerland
Restaurants, bars, and grocery stores are more expensive than almost anywhere else in the world. Expect to pay 20 to30 per cent 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. In fact, purchasing non-Swiss products, even if they are cheaper, is frowned upon by the Swiss.
Alcohol is still relatively reasonably priced due to the level of VAT and state taxes charged. VAT in Switzerland is about 8 percent, compared to nearly 20 per cent in Germany and France.
