Switzerland costs 55 percent more than Germany and pays 60 percent higher wages. Capital gains are tax-free, but there is a wealth tax, and flats in Zurich are dearer than in Munich. Whoever works there saves; whoever retires there pays.
The short answer
Ideal for working people with a Swiss salary, expensive for pensioners and newcomers without local income. Moderately taxed with a wealth tax instead of capital gains tax.
milinia’s take
- Capital gains in private wealth are tax-free, dividends and interest are not; the wealth tax runs 0.1 to 1 percent by canton.
- Lump-sum taxation by living expenses for wealthy foreigners without gainful employment in most cantons, minimum base around 400,000 francs.
- Health insurance is mandatory and private: 300 to 500 francs a month per adult, children extra.
- Property: the imputed rental value is taxed as income; abolition was decided in 2026, implementation follows.
Living and costs
Everything costs more: groceries 60 percent, restaurants 80 percent, rents in Zurich and Geneva double Munich. A one-bedroom flat in central Zurich sits at 2,000 francs, in Bern 1,400, in Lugano 1,300. Wages are high in return: median wage around 6,800 francs gross, specialists 8,000 to 12,000. Social contributions at around 13 percent employee share are well below Germany. Whoever earns and lives in Switzerland usually saves more than in Germany; whoever lives there on a German income pays.
Taxes
Federation, canton and municipality levy income tax, together between 22 percent in Zug and 45 percent in Geneva for high incomes. Capital gains on shares, funds and gold are tax-free in private wealth; dividends and interest are taxed at the tariff, with a 35 percent withholding tax that is reclaimed. In return there is a wealth tax on total net wealth, 0.1 to 1 percent by canton. Lump-sum taxation lets wealthy foreigners without Swiss employment pay tax by living expenses, at least seven times the rent and at least 400,000 francs of base; Zurich, Basel and Schaffhausen have abolished it. Inheritance tax for spouses and mostly children is zero in almost all cantons.
Property
Zurich city 14,000 francs per square metre, Geneva 13,000, Basel 8,500, Bern 7,500, rural areas 5,000 to 7,000. The home ownership rate is only 36 percent because banks require 20 percent equity and affordability at a notional 5 percent rate. Mortgage rates in 2026 around 1.5 to 2 percent. The imputed rental value, a notional income from owner-occupation, is still taxed; its abolition is decided and will be implemented with the loss of the mortgage interest deduction. Foreigners without a settlement permit may buy holiday homes only within limits (Lex Koller). Rental yields 2 to 3 percent.
Gold, portfolio, bank
Investment gold without VAT, bonded warehouses in Zurich and Geneva, the largest storage sites in the world. Swiss banks charge custody fees of 0.1 to 0.3 percent a year; online brokers are cheaper. An account is no problem with a residence permit, for non-residents with a minimum deposit.
What emigrants underestimate
Health insurance with per-head premiums of 300 to 500 francs per adult without an employer share, the deductible of up to 2,500 francs, the wealth tax on the portfolio, and the fact that the German pension is taxed in Switzerland while Germany can also capture it under limited liability without the basic allowance; the treaty settles it in Switzerland’s favour.
Try it yourself
Travel Budget CalculatorCountry, days, people, style: your daily budget and travel fund, with buffer and cash share.Income Tax CalculatorEnter taxable income, read off tax, marginal rate and average rate, with joint assessment.Frequently asked questions
Do cross-border commuters pay tax in Switzerland?
Commuters resident in Germany pay 4.5 percent withholding tax in Switzerland, credited in Germany; the main taxation happens in Germany.
How high is the wealth tax?
By canton 0.1 to around 1 percent of net wealth above allowances of 50,000 to 200,000 francs. Zurich around 0.3 percent at one million.
Can I buy a flat in Switzerland as a German?
With a B or C residence permit for own use, yes. Without residence only holiday homes in designated municipalities with a quota.
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