Preparing for a move to Switzerland
Having a good idea of the financial documentation you will have to get through when you arrive in Switzerland will go a long 
way in ensuring your transition into expat life is a smooth one.
It's the little things that may slip your mind the easiest, so make a list of all the important financial actions you will need to take when first preparing for your move to Switzerland. There are obvious ones that instantly spring to mind like organising a bank account and getting residency documents, but what about making sure you can legally drive in Switzerland? Or arranging a TV licence? These are all important areas that you will need to consider.
If you are a motorist then you will probably wish to continue driving in Switzerland, luckily, if you already have a driver's licence you will be able to use this for up to one year before you will be required to obtain a Swiss licence. However, be aware that if you don't apply for the Swiss licence during your first year, you will have to undertake a Swiss driving test.
Employment Permits
First of all, you will have to make sure your employment permits are in order and you can legally work in the country. If you are an EU citizen, then this will be no issue, as you will be free to find work, change jobs, move freely around the country and also bring family members along with you.
If you are not from the EU, the notion of a sole work permit is eschewed in favour of a broad 'residence permit', which allows you to live in a specific canton and work under a specific employer. If you have already secured a job in the country, obtaining a residence permit will straighforward and is something that your employer will assist with.
It's very important to get a TV licence in Switzerland: otherwise, you will face severe penalty fees. The cost of a TV and radio
licence is CHF 462.40 per year. It is necessary to register with Billag SA, the private body responsible for administering licences.
All people who are living and working in Switzerland are required to have health insurance. As an expat you will have to make sure that you have taken out a health insurance package within three months of being in the country. The cost of medical insurance will differ depending on your personal details and the canton in which you live. Despite the presence of many private insurers, most of the time, foreigners are required to register with an insurance firm that is run by the Swiss state.
Another aspect of life in Switzerland that you will have to learn about is the rather unique pension system.
In Switzerland, pensions are differentiated by a three pillar system. Pillar one is a basic state pension, pillar two is a company pension, and pillar three is a private pension.
Pillar one is compulsory for all Swiss citizens who are 20 years old or over, be they employed or self-employed, and is known in Switzerland as Alters-und Hinterlassenenversicherung (AHV).
Pillar two is Prévoyance Professionelle - PP, also known as the occupational benefit plan or Berufliche Vorsorge-BV- and is, essentially, the company pension. Anyone living and working in Switzerland who earns between CHF 25,320 and CHF 75,960 per year is required to contribute to this pension tier.
The final pillar covers private pension insurance. Here, private pensions are subsidised by tax breaks. Only people currently in employment in Switzerland can utilise this option. Private pension contributions are taken via taxable earnings and are taxed at the time of payment, and the interest is tax-free.
Expats should realise that the pillar system is complex, and to gain a full understanding it is advised you consult with a recommended financial consultant.
by Justin Harris of Chase Belgrave
way in ensuring your transition into expat life is a smooth one.It's the little things that may slip your mind the easiest, so make a list of all the important financial actions you will need to take when first preparing for your move to Switzerland. There are obvious ones that instantly spring to mind like organising a bank account and getting residency documents, but what about making sure you can legally drive in Switzerland? Or arranging a TV licence? These are all important areas that you will need to consider.
Getting a Swiss driver's licence
If you are a motorist then you will probably wish to continue driving in Switzerland, luckily, if you already have a driver's licence you will be able to use this for up to one year before you will be required to obtain a Swiss licence. However, be aware that if you don't apply for the Swiss licence during your first year, you will have to undertake a Swiss driving test.
Employment Permits
First of all, you will have to make sure your employment permits are in order and you can legally work in the country. If you are an EU citizen, then this will be no issue, as you will be free to find work, change jobs, move freely around the country and also bring family members along with you.
If you are not from the EU, the notion of a sole work permit is eschewed in favour of a broad 'residence permit', which allows you to live in a specific canton and work under a specific employer. If you have already secured a job in the country, obtaining a residence permit will straighforward and is something that your employer will assist with.
TV licences in Switzerland
It's very important to get a TV licence in Switzerland: otherwise, you will face severe penalty fees. The cost of a TV and radio
licence is CHF 462.40 per year. It is necessary to register with Billag SA, the private body responsible for administering licences.Health insurance in Switzerland
All people who are living and working in Switzerland are required to have health insurance. As an expat you will have to make sure that you have taken out a health insurance package within three months of being in the country. The cost of medical insurance will differ depending on your personal details and the canton in which you live. Despite the presence of many private insurers, most of the time, foreigners are required to register with an insurance firm that is run by the Swiss state.
Pensions in Switzerland
Another aspect of life in Switzerland that you will have to learn about is the rather unique pension system.
In Switzerland, pensions are differentiated by a three pillar system. Pillar one is a basic state pension, pillar two is a company pension, and pillar three is a private pension.
Pillar one is compulsory for all Swiss citizens who are 20 years old or over, be they employed or self-employed, and is known in Switzerland as Alters-und Hinterlassenenversicherung (AHV).
Pillar two is Prévoyance Professionelle - PP, also known as the occupational benefit plan or Berufliche Vorsorge-BV- and is, essentially, the company pension. Anyone living and working in Switzerland who earns between CHF 25,320 and CHF 75,960 per year is required to contribute to this pension tier.
The final pillar covers private pension insurance. Here, private pensions are subsidised by tax breaks. Only people currently in employment in Switzerland can utilise this option. Private pension contributions are taken via taxable earnings and are taxed at the time of payment, and the interest is tax-free.
Expats should realise that the pillar system is complex, and to gain a full understanding it is advised you consult with a recommended financial consultant.
by Justin Harris of Chase Belgrave
