Moving to Zurich - tax and permits

[Icelander]

I've signed up as a new account to ask this as my work is automotive related and I don't want it to come back and bite me on the ass asking questions like this, but can't find a straight answer via Google.

I may have an opportunity to relocate from the UK to Zurich for a couple of years (or maybe longer) and am trying to work it through in my head. I'm married with one young child and would be earning somewhere between 80-100k CHF p.a. We are all UK citizens with UK passports and ideally my wife would want to be able to work part time out there.

The tax system seems to vary by Canton from what I can see, and we would probably rent an apartment in central-ish Zurich while renting out our house in the UK. There then seems to be various mandatory insurance policies and possibly work permits to arrange too.

I would be going out there to a guaranteed full time job rather than going to search for one if that makes a difference. Any advice would be much appreciated!

[QROPS]

We have an office in Switzerland so if you would like more info please feel free to drop me a PM.

[williaa68]

Does your wife speak German? If not, then unless she has a particular skill which would appeal to the expat community (e.g. Childcare - lots of demand for good, properly qualified nannies) she may struggle to find work. She certainly can work - there is free movement of labour between Switzerland and the UK but the arrangements are a little complicated. if you have any employer who will help you sort out a residence permit then she can piggy back you very effectively. Tax varies substantially by canton (and even by town but not when you are first there as you pay a blended rate) but is generally lower than in the UK - a lot lower in, eg, Zug, less so in central Zurich.

Zurich is a good place to live but it is jaw droppingly expensive, which tends to be reflected in salaries. £20 for a pizza, £6 for a beer etc. Do your homework before committing to anything. Also have a look at englishforum.ch - there's a lot of complaining on there but also quite a lot of information.

Good luck!

[Icelander]

Wife doesn't speak German unfortunately.

I've been spending a bit of time in Zurich recently so am fully aware of the unbelievably high price of anything at all, which I'd need to factor in. Is 20% total tax about the right ball park (told to me by a Swiss colleague) or am I miles out?

[williaa68]

Married with a kid and on chf100k I'd expect it to be a fair bit less than that - more like 12 ot 13 but worth checking with someone who knows for sure. It certainly isn't more!

[big_boz]

Friend of mine re-located to Zurich a few years back and his missus went over with him. She dosen't speak German and neither does he really, she works in finance recruitment and he is head of insurance for a major international finance house. They earn a fair bit more than you are expecting though so they don't exactly struggle (he recently bought a couple of year old V8 vantage) but be aware that Zurich is VERY expensive.

I would have thought that if your other half isn't bringing in a wage and your company isn't offering you some sort of living allowance or you don't have some other source of income you might find yourself a little short of the ex-pat dream.

I have been over a few times and it never ceases to amaze me how much everything costs there, and i travel a fair bit.

Do your research and fully work out your cost of living before you commit, its a fantastic place to live, mega clean, and the lake is awesome, but i wouldn't want to do it on a "shoestring" so to speak.

[Lawrence5]

You may have to factor in paying uk tax as a non-resident landlord. Can only relieve the interest element of any mortgage...

Also worh having a look at the new uk residency rules as string links to uk and regular visits can screw up residency..
Quick guide.....

http://www.kpmg.com/IM/en/IssuesAndInsights/Articl...

Long guide

http://www.hmrc.gov.uk/budget-updates/11dec12/stat...

[W99KSY]

williaa68 said:

Married with a kid and on chf100k I'd expect it to be a fair bit less than that - more like 12 ot 13 but worth checking with someone who knows for sure. It certainly isn't more!

I'd agree with this - a useful website for looking into the costs is www.comparis.ch

Also worth bearing in mind is the cost of renting out here (and finding something suitable in budget/get accepted). I live in Winterthur (20 mins to Zurich, 13mins to the airport) and i'd say expect to pay circa 2200chf per month for a two bed apartment - not cheap but definitely a better standard of living than I had in London (although I do miss a good bit of steak at UK prices!!)

[AndrewO]

Zug from memory was 12% tax, compulsory insurances use to roughly equal the amount I claimed in expenses. Basically accommodation, meals and flights were deducted off the tax bill.

You might struggle on 80-100k chf with a family but worth giving it a go just for the experience. Worth asking the employer if they would put you up for a month.

I use to leave my place in Luzern and be at the top of Engleberg in 45minutes.

PM if you want more info.

[MANSFA]

I am just leaving Zurich, happy to give a summary of costs, expenses.

It is expensive, but tax is LOW, so you take home more, but spend more...net-net, I reckon I was better off than in London.

[Icelander]

Thanks for all the advice so far, it's really helpful. Sprog hasn't even been born yet, and will be 4 months old when (if) we move so schools aren't a big issue.

How does company car tax work out there? Does it make sense to run something like an Evoque or Q5?

I guess I need to benchmark the salary on a 2:1 exchange rate to allow for future fluctuations, then adjust for the extra cost of living over UK.

What's the bit of the city between HB and the airport like (Oerlikon) to live in? Need to look at city and lakeside areas I think, the city is tempting but after 7 years in the Chilterns the lake might be better.