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MOBILITY STUDY:SWITZERLAND
The global expat population continues to boom around the world. According to a World Bank Global Links Report, the number of people living outside their home country has more than doubled since 1980 to 190 million.1
As reported in the 2014 Expat Explorer survey, one of the largest independent global expat surveys now in its seventh year, Switzerland is one of the leading destinations for a balanced expat lifestyle. Many Switzerland-based expats mentioned the better work/life balance, availability of outdoor activities, and a family-centric culture as the reasons why they enjoy the Swiss lifestyle.2
ABOUT SWITZERLANDFACTS
> Capital: Bern > Population: 8.1 million > Climate: Moderate, no excessive heat,
cold, or humidity
> National language: French, German, Italian, Romansh
> Local currency: Swiss franc
ECONOMIC TRENDSSwitzerland’s economy is one of the world’s most stable. Its policy of long-term monetary security and political stability has made the country a safe haven for investors, creating an economy that is increasingly dependent on a steady income of foreign investment.
The Index of Economic Freedom ranks countries on quantitative and qualitative factors, including property rights, fiscal freedom, government spending, regulatory efficiency, and open markets. As of 2014, Switzerland’s economic freedom score is 81.6, making its economy fourth on the list for the first time ever. Its score is 0.6-point higher than 2013, with improvements in trade freedom and the management of public spending partially offset by declines in monetary freedom and labor freedom. Switzerland is ranked first out of 43 countries in Europe.3
Additionally, companies across Switzerland are more confident about the economy and this optimism is reflected in the improving job market, according to the Swiss Job Index (SJI), a monthly indicator of the number and types of jobs advertised in Switzerland.4
A POPULAR EXPAT DESTINATIONAs the number-one Expat Explorer overall country, Switzerland has a lot to offer natives and expats alike.
A quarter of expats earn over $200,000 USD per year, more than twice as many as the global average (25 per cent compared with the global average of 11 per cent),
and 85 per cent associate Switzerland with higher salaries than their home country. This correlates to a more expensive lifestyle and higher cost of living. Many have reported spending considerably more on groceries (84 per cent), healthcare (78 per cent), accommodations (77 per cent), household goods (69 per cent), and going out (66 per cent) than they did previously. Despite this, over two-thirds find they have more disposable income than they did before moving to the country.5
Foreigners account for around 23 per cent of the population. However, in February 2014, Swiss voters narrowly passed a controversial anti-immigration initiative. It aims to impose limits on the number of foreigners allowed into Switzerland and may signal an end to the country’s free movement accord with the European Union. Due to international criticism there is not yet a date of implementation, and it may have difficulties putting the initiative into effect.6
COST OF LIVINGFamous for its exorbitant cost of living, according to the 2013 Mercer Cost of Living Survey, three of the country’s cities, Geneva, Zurich, and Bern, ranked within the top 10 most expensive destinations in the world. A Credit Suisse study designated Zurich as the city affording workers the highest wages across the globe, with Geneva a close second.7
1 Vidya Ram. “World’s Best Places to Be an Expat.” Forbes.2 Expat Explorer Report 2014. HSBC.3 2014 Index of Economic Freedom. www.heritage.org4 “Switzerland – Confidence about the economy boosting job growth.”
Staffing Industry Analysts, 28 October 2014.
5 “Expat Explorer 2014.” HSBC.6 “35 facts about Switzerland.” Expatica, 13 October 2014.7 Cost of Living in Switzerland. Expat Arrivals
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MOBILITY STUDY:SWITZERLAND
Expats living in Switzerland will find that they may get more for their money. According to Expat Arrivals, everything is efficient, the infrastructure is designed for the general welfare of the people, and public spaces are incredibly beautiful and well maintained.8
Every canton, region, and even city, town, or village has different tax rates and fees for specific things. It is important that companies planning to relocate their people to Switzerland consider an orientation service to help educate their employees on what to anticipate.
For an overall cost of living perspective, Switzerland is 10 per cent more expensive than New York City. Entertainment and dining out are ranked high, while costs for transportation and education are ranked lower. See Figure 1 for a list of everyday items and prices in Switzerland. See Figure 2 for an index of cost of living scores of Switzerland compared to New York City, which ranks at 100.
FINDING A SWISS HOMERenting an apartment or home is very popular in Switzerland. In fact, nearly 70 per cent are tenants rather than owners, and as a result, a shortage of apartments in both cities and towns has developed. The situation in Zurich and Geneva is especially crucial, and the stiff competition has resulted in skyrocketing
rental prices. For example, an unfurnished one-bedroom apartment outside of Zurich’s city center costs nearly $1,500 USD per month. Expats should expect to fork out at least 20 per cent of their salary on housing accommodations.11
GLOBAL EXPERTISE FOR SUCCESSFUL RELOCATIONSGraebel offices are staffed with experienced global relocation and mobility industry experts who are ready to help companies and their transferred people on long- or short-term assignments in Switzerland – or anywhere on six continents. As its industry leader in highly personalised service, Graebel proactively provides pre-departure and ongoing assistance, helping clients’ employees remain productive prior to and throughout the assignment. For answers to questions concerning Switzerland, contact Graebel today.
8 Ibid.9 www.numbeo.com. Currency conversions are based on rates provided
by XE Currency Converter on 6 January 2015.
10 Ibid.11 “Cost of Living in Switzerland.” Expat Arrivals. Calculated in USD.
FIGURE 1: PRICE OF COMMON ITEMS IN SWITZERLAND9
Loaf of bread $2.60 2,19 € £1.72
Bottle of wine $12.33 10,38 € £8.14
One-way bus ticket $3.60 3,03 € £2.38
Pair of sport shoes $135.11 113,79 € £89.23
One-bedroom city apartment (monthly rent)
$1,472 1.240 € £972
One ticket to the movies $18.50 15,58 € £12.22
Imported beer at a restaurant
$5.59 4,71 € £3.69
FIGURE 2: COST OF LIVING IN SWITZERLAND10
Consumer price index 130.46
Rent index 59.02
Groceries index 132.05
Restaurants index 135.38
Consumer price plus rent index 95.69
Local purchasing power 144.04
