ON THE OTHER SIDE OF THE ALPS
Snow-peaked mountains. Crystal-clear lakes. Exciting cities and beautiful countryside.
Switzerland, at the heart of Europe, has many obvious charms for those planning to move to the
country, writes Charlotte Beugge
And there are plenty of other less visible reasons why
Switzerland is such an attractive place to live. The currency,
the Swiss franc (CHF), is one of the most stable in the world.
And according to KOF Swiss Economic Institute
(www.kof.ethz.ch) Swiss GDP will increase by 1.6% this year
and 1.8% in 2017.
Unsurprisingly, Switzerland is often ranked one of the best
places for foreigners to settle. It’s a multi-national culture which
makes fitting in easier: out of the 8m population, around
1.65m weren’t born in Switzerland and this includes reporter
Jet d'Eau, Geneva
ranks Switzerland the best place to live based on economic
factors. Taking into account other factors including lifestyle,
family and the ease of integration with locals and
Switzerland comes fifth in the HSBC report: the top rated
country is Singapore.
Politically stable, Switzerland ranked seventh in the world in the 2016 Global Peace Index from
the Institute for Economics and Peace: the UK was ranked 47th (the highest ranking went to
Iceland). And while Switzerland is not in the EU it is in the Schengen area – so it’s easy to move
around Europe. Within the country, the public transport system is safe, punctual and
comprehensive. The public school system is good and there are plenty of private international
schools if want your children educated in English. You can find a list of international schools at
www.swiss-schools.ch. Famous international schools include Aiglon College, which has
educated children of film stars and royalty.
Healthcare is excellent – but you will have to take out
medical insurance if you planning on living in Switzerland for
more than 90 days. There are plenty of insurers covering the
market (see www.priminfo.com) and while a basic policy is
compulsory, most settling in Switzerland will also take out an
additional policy to cover most costs.
The cost of living can be high in Switzerland. Website
www.numbeo.com ranks the cost of living in Switzerland as
76.8pc higher than in the UK and if you include the cost of
property rental, it is 84pc higher. For those wanting to buy
property Numbeo says the typical price per square metre for
a City Centre apartment is CHF10,810 (£8,917). In
comparison it says the equivalent figure for a city centre
apartment in London is £3,548 – although prime property in
Lake Geneva, late summer 2016
Epesses is a former municipality in
the Swiss canton of Vaud, located
in the district of Lavaux-Oron on
Lake Geneva. It is noted for its
wine production
central London will cost more than that.
A meal for two in a mid-range restaurant
would cost about CHF100 (£82) in
Switzerland; in the UK about £50.
However, salaries for foreigners moving to Switzerland for work can be very generous for those
who have the expertise and skills demanded by blue-chip employers. Indeed the 2015 HSBC
survey said that a quarter of those who had moved to Switzerland earned more than £125,000 a
year. Popular sectors to work in are technology, pharmacology and biotechnology: there’s the
European Organisation for Nuclear Research - CERN - in Geneva as well as the headquarters of
Hoffman La Roche, Novartis, Nestlé and Glencore.
Banking too is big business in Switzerland: the Bank for International Settlements is based in
Basel as is the headquarters of UBS. And Switzerland’s also home to the headquarters of the
Red Cross, the United Nations High Commission for Refugees and more controversially,
football’s governing body Fifa.
And settling in Switzerland is not just for those planning to work there. It could be a perfect place
to relocate for high net worth individuals and ultra-high net worth individuals. That is because for
those foreign nationals taking up residence in Switzerland who are not planning to work, there is
a particular tax rule which makes moving to the country advantageous. Cecile Vuillier, senior
relationship manager at ZEDRA explains that foreign nationals residing in Switzerland but not
working can choose to pay an expense-based tax based on their cost of living instead of ordinary
income and wealth tax. They do this by declaring their annual family living expenses to the tax
authorities before moving to Switzerland – and if approved, it means effective earnings and
wealth need not be declared.
She added: “The lump-sum taxation regime may be attractive to wealthy foreigners given the fact
that the ordinary tax rates only apply to a portion of the taxpayer’s worldwide income and assets”.
Only foreign citizens who become resident in Switzerland either for the first time or after a tenyear absence and who do not earn a salary are allowed to pay tax on this basis – and if they
become Swiss citizens or start work the right ceases. It also only applies to income and wealth
taxes, Ms. Vuillier adds, not inheritance and gift tax. These latter taxes are levied in the canton
where the deceased or donor has lived – unless it involves property, when in which case it’s the
canton where the real estate is that levies the tax. And while Swiss law doesn’t have any explicit
provisions on trusts since 2007 it has recognised trusts and the law under which it was
recognised.
Of course, apart from the tax regime and work opportunities, Switzerland has plenty to attract
those wanting to relocate. For skiing fans, the slopes are only a couple of hours’ drive from the
major cities. And mini-breaks to other countries are easy: you can jump on a train (no need for
queuing at airports) and experience another country quickly. Switzerland has borders with
Austria, France, Germany, Italy and Liechtenstein – indeed, if you live in Geneva you are only a
few kilometres from the French border; Basel has suburbs in both Germany and France and
Zurich residents are only 24 kilometres from the German border. And if you want to travel further
Geneva and Zurich have major international airports – as well as smaller ones in Lugano, Bern
and St Gallen.
While Switzerland is a multi-lingual country – German, French, Italian and Romansch are the
official languages – English is widely spoken. For those missing the UK or the company of their
fellow countrymen, there are plenty of societies and clubs appealing to Anglo Saxons, from
amateur comedy clubs in Zurich (www.zcc.ch) to cricket clubs (www.cricketswitzerland.ch). So
for those wanting life at the centre of Europe, in beautiful surroundings, with a tempting tax
regime for those not working and generous salaries for those want to work, Switzerland offers the
perfect answer. And that’s even before considering the amazing lifestyle opportunities on offer.
For more information:
Cécile Civiale Vuillier | Senior Relationship Manager
Direct Line: +41 22 888 06 26 | Mobile: +41 79 962 44 85 | Email: [email protected]
Boulevard Georges-Favon 8, PO Box 5634, 1211 Geneva 11, Switzerland
www.zedra.com
About Cécile Civiale Vuillier
Cécile has enjoyed a long and extensive career working with small and large trust
companies alike in a career which has spanned more than 15 years. During that time she
earned her stripes working for companies across the globe; earning a solid reputation for
her work on international trust & foundation administration and corporate services.
Prior to joining ZEDRA in Geneva, she previously worked in the United Kingdom and
France before relocating to Switzerland heading up a trust company.
Cécile is a member of several significant professional bodies, including The International
Tax Planning Association and the Association of International Business Lawyers. Her in-depth business
knowledge and constant up-to-date industry understanding lends itself well in her role as Chairwoman of the
STEP (Society of Trust and Estate Practitioners) Swiss and Liechtenstein Federation.
Cécile took her degree in trade and commerce, before pursuing her studies further to gain qualifications in
company law and practice, international trust management, trust administration and accounts, and trust creation.
On a personal level, Cécile has the unique ability to build positive individual relationships with her clients,
relationships she has nurtured and maintained for years.
It is her uncompromising integrity, business acumen and hands-on operational approach which make her such a
valuable member of the ZEDRA team.