Basel advice

[monty999]

Hello,

My daughter has just taken the offer of a job (fashion buying for a company called Telly Weijl) in Basel. While I am very pleased and excited for her to have the opportunity and the experience of working in obviously a lovely place, I have some reservations regarding the living costs involved having read some of the other posts on here which are all very informative but worrying. Are living costs any different than Geneva or Zurich which other discussions I have read about. For some clarity, her annual salary is somewhere around 60k-65k CHF which I understand to be quite low for living in Switzerland. She will get an apartment from the company for the first 3 months then has to find her own accommodation. They also supply local commuting transport ( I take it that will be a tram pass or similar).
She is really looking forward to the adventure but could do with a bit of inside knowledge from you good people on how best to make the most of it. She has a start date of middle of April.

Thanks in advance.

[monty999]

Thank you very much for taking the time to give us some very useful information. Her profession is in fashion buying with a first in her degree in "Fasion Buying and Merchandising" having worked in Manchester for 5 years at assistant level this is the next step (junior buyer) in progressing her career. We understand that this is not a 'money making' move for her, rather an experience gaining exercise which will go down well on her CV for future moves. I think these companies know the value of this when determining the low salaries, progressing through the ranks at different companies apparently is looked on as better than staying at one company waiting for promotions. As far as I understand, this industry is one of those 'top heavy' paid professions where the initial few roles are not well paid but then from the next level and upwards get very high salaries. It is a big move for her (and we get a spare room for the first time !), but we really want her to take the chance and not be left wondering in another 5 years time, one life eh? (Personally I'm much more comfortable with it than a move to London !)

Thanks again for the info, particular attention needs to focussed on location after the initial 3 month provided accommodation and the differentiations in tax depending location just seems so strange and complicated to us back home.

[monty999]

Sound advice, thanks.

[monty999]

chris_gilmartin said:

Very good advice, get on with it right away!

Thanks, she will be getting straight on it when she gets over there in April but in the mean time we are already doing a bit of internet research on apartments and suitable affordable areas. I'm sure she will be quizzing the other girls she'll be working with but also we've been reading up on the article you posted on the other thread regarding frontier working to see if that may be possible living in Saint Louis just over the French border. Lots to investigate.

Thanks again for your input, most helpful which is a refreshing change from other areas of PistonHeads forums where asking for help/advice usually attracts someone who just wants an argument. Cheers.

[monty999]

eyebeebe said:

Pete102 said:

Haha, thanks. It's more about general taxation requirements.

I'm moving on a permanent contract and I as I understand my tax will paid at source (B-type permit) until I eventually move to a C-type permit (many years down the line). My query is mostly around what type of taxes I'll need to pay (as opposed to how much). I've done a little bit of googling which has thrown up several types of tax, I'm just not sure if they are applicable or not? e.g.

Cantonal tax
Direct federal tax
Communal tax
Church tax
Old age and Invalidity
Unemployment insurance

2nd Question - If I am taxed at source does this encompass all of the applicable taxes or would I still need to submit a separate return?

Any help you can throw my way would be greatly appreciated,

The first three and the last two are compulsory, as is health insurance, which is essentially a tax, but you are free to choose your provider and they cannot reject you for the basic insurance.

Starting with the last two (and some other minor ones that really aren‘t worth concerning yourself with)... these are essentially the equivalent of national insurance. The numbers move around a tiny bit most years, but figure on paying 6.5% in total for social security up to about CHF 150k, then the percentage decreases a little. Your employer will also pay 6.5%.

The first three will move in relation to your income on a progressive scale. It‘s not like the UK where you have a tax free allowance, a 20% band, 40% etc. The federal tax rate at a given income point will be the same everywhere in the country. The cantons are then free to set their own tax rates - at a given income the tax will be the same across the canton. This amount varies massively between cantons. Then the Gemeinde you live in can set its own tax rate as a percentage of the cantonal amount. This amount can vary quite a lot between Gemeinden within the cantons. Therefore deciding where to live can have a massive impact on how much tax you pay.

As you rightly say, you will be taxed at source and will continue to do so until you get a C permit, marry a Swiss or buy Swiss property. What this means is that you will have tax deducted from your pay at the average amount for the canton (with a standard set of deductions assumed). If you earn under CHF 120k to all intents and purposes that‘s it done. However, if you earn over CHF 120k you will be obliged to complete a tax return and your tax at source becomes a downpayment. Depending on the tax rate in the Gemeinde that you live in (above or below the cantonal average) and what individual deductions you can claim for you can end up owing money or getting a refund. As of this year if you earn less than CHF 120k and you want to do a complete tax return you now have that option, but you need to weigh up whether it is in your favour or not. I‘ve read many stories of people insisting they want to do a return, not fully understanding the system and ending up with thousands to pay.

To add to the complexity... if you have a wife and kids you will pay a different level of taxes. You get deductions for kids and non-working spouses. If you both work and are married you will be jointly assessed, which actually means you end up paying more tax, as they combine your income and base the tax rate on the combined higher amount!

Church taxes are completely optional. If you don‘t want to pay them, tell your Gemeinde that you don‘t have a religion when you register, otherwise they will mark you down for church taxes. The amount varies depending on catholic or protestant or other.

One more deduction from your payroll is the compulsory company pension scheme. The amount varies between companies and yours will be able to give you more details.

If any of that doesn‘t make sense or there‘s anything else, just let me know.

At first all of these taxes seemed to be quite confusing if not scary, but having them explained I think makes things a bit clearer.

Would I be right in assuming the following to put things simpler:-

Federal = same as our income tax just different rate with, as you say, no tax free bands

Cantonal and Communal = maybe similar to our council tax which varies massively depending on area/banding ??(just a guess)just collected differently at source of income rather than a separate bill.

Old age & unemployment = again, as you've said, NI contributions. ( question with this one is, in the event of losing her job or sickness, would she be then entitled to benefits as a temporary worker on a B permit ?)

Church Tax = well that's just strange ! maybe they don't have collection boxes at the churches.

Cheers for all the advice so far, she is already on the case for the accommodation to continue after the initial 3 months temporary provided by the employer. They have let her delay her start date by a week in April as from the 12th April we are legally allowed to meet other people which will give her the opportunity to see her friends before departing which is a nice touch.

[monty999]

The query regarding the unemployment/old age tax (NI) contributions is more aimed at wether this would cover any payments in the event of any illness during her employment. In the (hopefully) unlikely event of getting made unemployed she would simply come home.

She is really looking forward to the experience, particularly mixing and socialising with the multi-national people at her company and integrating in the local customs and living. My wife and I are also looking forward to plenty of visits too, initially flying then maybe later in the year a road trip possibly with a few diversions (obviously all depending on travel restrictions !!).

[monty999]

Thanks to both of you for your most valuable input. Obviously she will discover a lot more when she is in post but having a heads up on things before she gets there is a great start, Cheers both.

[monty999]

Hello again, just wondered if anyone could tell me if there has been any changes regarding lifting some Covid restrictions since I believe the Swiss government were meeting on May 26th to discuss possibilities, (particularly interested in any changes regarding travel in and out, any info gladly received. Thanks.

p.s. Daughter is now settled in after a month of living there and loves the place, can't wait to visit ourselves.

[monty999]

chris_gilmartin said:

All the latest Federal information can be found here https://www.bag.admin.ch/bag/en/home/krankheiten/a...

Visitors from the UK have to quarantine on arrival for 10 days I think, this is because of the prevalence in the UK of variants of concern.

Thats a great link, thanks. Currently daughter is trying to arrange trips back home but as rules/goalposts keep changing it's very hard to plan anything, already had flights cancelled in July and September by Easyjet. Just have to keep an eye on the changing situation regarding us being on the list of risk countries. In the mean time she's learning what and where to buy stuff and found out what's expensive (meat !!) and where to shop. Sounds a great place to be stuck though and we can't wait to visit especially when she's in her swanky new pad by about October.
Cheers

[monty999]

chris_gilmartin said:

I'm in the same boat, wanting to visit the UK to see family, for the moment it's possible but not very practical. Fingers crossed it won't be too long now before things start getting back to normal.

Yes, meat is expensive in Switzerland! Basel is very close to both France and Germany though, so cross-border shopping is an option...but don't break the customs limits....https://www.ezv.admin.ch/ezv/en/home/information-individuals/travel-and-purchases--allowances-and-duty-free-limit/importation-into-switzerland/duty-free-allowances--foodstuffs--alcohol-and-tobacco.html

Does your daughter drive? https://www.mobility.ch/en/ is a car sharing service, very handy if you happen to live near where the cars are located.

Funnily enough she is going to Germany after work on Monday or Tuesday with one of the other girls from work to do a bit of shopping as the supermarket is open until 2200hrs, it seems that this is the normal thing to do. Think they're going on the tram which they have a free pass for. At the moment she's in a temporary place opposite a lovely park (Kannenfeld I think), awaiting completion of a new apartment block which she has secured a pad in. All of the 'strange' rues in Switzerland seem to make perfect sense now that she lives there and my only reservation is that I can't see her wanting to come back home but as long as we can come and go as we please we can live with that. Let's hope !!

[monty999]

Bit of an update. Just returned from visiting daughter for the first time and really impressed with the place. Very reassuring trip for the wife and myself to know that she is in a lovely place and settled into the ways of life very quickly. I particularly loved eating and drinking either in the park or down on the banks of the Rhine which seems to be the main social gathering. We'll be back in November to help with the move into a new apartment in the Claraturm. We stayed right opposite in the Hyperion which will be very handy come moving time. The transport system is great, it seems like there are more trams than cars. A beautiful, safe, clean city.......wish I lived there !!

[monty999]

Pete102 said:

4 months here for me now

I really like Basel, the more time I spend in the city the more it grows on me.

I originally moved east of Basel (short train ride in) but in time I'm going to move into the city more. I'm glad everything is going well for you.

Thanks, daughter’s really settled in to Basel life now, just one more thing to do now and that’s move in to her new (permanent) apartment, although I did like where she is now by Kanenfeld park ( bit too quiet for her but suits oldies like us).

We are going over in two weeks time to help with the move into the newly finished Claraturm glass tower at Messeplatz ( lots of IKEA building for me !). We will stay in the Hyperion again which is handy as it’s opposite her new place and does a lovely breakfast !!

Just got the Swiss pass thing sorted so we can go in places, love the foody Markthalle.

Enjoy, cheers !

[monty999]

Thanks! Actually I was in the Markthalle last night, there's a great cocktail bar you should check out.

If you need any help carrying, moving, putting furniture up etc. then please do not hesitate to give me a shout, I'm sure I can spare a few hours to help out a fellow PH'er

[/quote]

Thanks Pete that's a very kind offer. Fortunately as she is in a furnished place, supplied at the moment by the company (Tally Weijl near to Markthalle), there is only a few suitcases to move across which is quite easy using the free Basel tram pass we receive as hotel guests. The rest gets delivered by Ikea. I've put together a few essential tools and a small drill which will have to go in the checked case we take. Think everything is covered, taking son over this time as well to lend a hand and then he can stay with his sister in her apartment.

One thing I thought was great was the free transport everywhere with the Basel card that you get when staying in any hotel in Basel, even covers the journey from the airport with the booking confirmation -never had that from any other city visits. Comes in very handy, enabling us to get around easily without constantly having to get tickets.

Doing the food shopping in Germany certainly saves her quite a bit although, unlike food prices,I found that booze was quite cheap enough in the Swiss supermarkets. She has learned that you can survive financially in Basel as long as you're not expecting to go to restaurants/ bars too often. Most of the socialising revolving around picnics/drinks along the Rhine or parks which we really enjoyed with such a relaxed atmosphere.

Hopefully the travel situation carries on improving especially Easyjet flights returning as there is a long awaited list of mates queuing up to visit her, starting with the Christmas food and drink markets.

Cheers.

Edited by monty999 on Thursday 21st October 11:24

[monty999]

Pete102 said:

No problem

The travel pass you've received also covers busses and trains in the TNW region, its super useful and with public transport being as good as it is, you can get just about anywhere relatively quickly.

Easyjet have moved onto their winter schedule so theres actually more flights available from Manchester and Gatwick which is a big help (I come back to the UK every 10 days for my children)...prior to this it was mostly via Palma or coming back into Milan and taking the train to Basel! not the easiest!

As a final note, I know you're taking some tools across, but if you need any others (electric drill, screwdrivers etc.) then I'd be happy to drop them to you.

Thanks, hopefully my small selection will see us through (along with the usual ikea allen key of course )but if I do need anything I may give you a shout if you are anywhere near Messaplatz /Clara area.

Fortunately Easyjet are available for our flight home to Manchester on the Sunday but outgoing on the Wednesday we have to use Lufthansa again. Last time via Frankfurt which turned out to be a nightmare connection as its a massive airport, this time we are coming via Munich. The Easyjet flights for 3 of us was £105 but the Lufthansa flights were £340 !! Daughter has been using Zurich direct to Manchester up until now which was equally expensive.

Thanks for your offers mate, take care