Retiring to Switzerland as a UK Citizen
Switzerland is undoubtedly one of the most attractive places in the world. With its pristine landscapes, high standards of living, low crime rates and robust healthcare system, there’s not much left to desire for those seeking a comfortable and secure retired life. Despite the country’s relatively high cost of living, many affluent British retirees choose to live their golden years in this scenic Alpine country.
Why?
Well, apart from all the factors mentioned above, Switzerland's thriving and stable economy and political environment make it an exceptionally attractive destination for retirement. What’s more, the country offers some retirement-friendly programs for foreign nationals.
Let’s explore the advantages and disadvantages of retiring in Switzerland in greater detail to help you determine whether the sweet Swiss lifestyle aligns with your retirement goals.
The Pros
Here are the top reasons Switzerland is a retirement haven.
Clean Environment
Retirees often look forward to a laid-back life with less exposure to stress and pollution. Switzerland offers this and more. According to the Environmental Performance Index (EPI), the country is ranked among the top ten cleanest countries in the world. The index measures air quality, water and sanitation, biodiversity and habitat and sustainability.
Given this strength, Switzerland is an ideal place for retirees who want the conveniences of a thriving economy but none of the pollution usually associated with it.
Switzerland also boasts of abundant wildlife and expertly manages its natural resources through its innovative focus on sustainability. For example, the country’s train transportation is highly efficient, reducing the need for cars, and almost every Swiss town can be reached by public transportation. It's also common to see people walking or using bicycles to commute, reducing carbon emissions.
The Swiss are also passionate about recycling, using renewable energy resources and are united by a love for the outdoors. Environmental stewardship is very much ingrained in their culture, which can be attributed to their rural roots and deep respect for nature.
High Standard of Living
Switzerland has a well-managed economy, as evidenced by its thriving industry and job market, infrastructure, public services and quality of life in general. The country’s currency, the Swiss Franc (CHF), is stable, which is why investors and savers turn to it during economic uncertainties abroad. Switzerland is not part of the EU, but it has multiple bilateral unions with them that enable it to enjoy the EU’s single market.
Switzerland is known for innovation and its brand of excellence—Swiss precision, Swiss watches, Swiss cheese, Swiss knives—are all products of human industry perfected through many generations.
Switzerland has excellent educational institutions, including several international schools. There are a variety of job opportunities available, both full-time and part-time, and the country has a low unemployment rate.
As previously mentioned, there is a robust public transport infrastructure that enables cities to be interconnected with routes to mountain areas and rural destinations. The country has some of the world’s most scenic and extensive train routes, making “traincations” or the combination of train travel and holidays a favourite activity of many retirees.
Mild and Versatile Climate
Switzerland’s generally mild average temperatures, ranging from 8-12°C make outdoor adventures acessible and enjoyable. While temperatures can occasionally reach around 25°C, in lower lying areas, extreme weather conditions such as severe winters or scorching summers are rare.
The temperatures in the winter typically range from -2°C to 7°C from January to February, although higher altitudes can experience even colder conditions. With four distinct seasons, Switzerland's climate is shaped by the Alps and the Atlantic Ocean, offering a varied and balanced weather experience throughout the year.
World-Class Healthcare
Switzerland has many world-class healthcare facilities and services and all citizens, including foreign retirees, are required to have health insurance coverage. British retirees in Switzerland must have private healthcare insurance for basic coverage.
Many retirees also avail supplementary healthcare insurance to cover other services like private rooms, extensive dental care, alternative medical care, long-term care, specialised treatments, etc. While public healthcare is subsidised by the government for basic coverage, private and supplementary insurance are paid by the individual.
Retirees can benefit from Switzerland’s vast network of healthcare facilities and professional services with minimal language barriers, as English is spoken widely almost everywhere.
Low Taxes
Each of Switzerland’s 26 cantons or independent regions has autonomy in various aspects of policies, including taxation. Just like wages, there is no centralised system or matrix of tax rates except for federal taxes. For instance, cantons like Zug and Appenzell offer particularly low income-tax rates, which can be as low as 7%, making them attractive compared to other European regions.
However, note that retirees are taxed for their residency and all their income internationally, including their UK pension. UK and Switzerland have a double tax agreement that allows a British retiree in Switzerland to avail of tax credits or exemptions in order to avoid being taxed twice.
Low Crime Rate
Switzerland's homicide rate is just 0.5% — much, much, lower than in the UK, USA and many other countries. This impressive safety record means retirees and their families in the UK can feel reassured about living in or visiting Switzerland. With such a low crime rate, retirees can relax and enjoy their golden years, exploring the beautiful country with peace of mind.
Relatively Wide Use of English
In Switzerland, the main languages spoken are German, French, Italian and Romansh. However, English is also used in large cities and places with a high concentration of expats.
This makes it relatively easy to communicate with locals in business environments, public facilities and tourist attractions. There are also many international schools in Switzerland, which makes English a popular language, especially among the younger generations.
The Cons
Now, let’s look at the potential challenges that UK citizens may face if they choose Switzerland to live out their retirement years.
High Cost of Living
Switzerland is notorious for being an expensive country to live in. Factors that contribute to it include the high living standards, high wages and the strength of their currency which is the only Franc remaining in Europe.
Because their currency is strong, it results in high costs of imported consumer goods and raw materials, impacting the prices of commodities and services including groceries, housing and healthcare.
The cost of grocery goods and meals in Switzerland is almost twice as much as in London. The cost of transportation and house rental is also higher. Everyday household expenditures, cost of leisure activities, healthcare and other living costs are also higher compared to other European cities like London, Brussels, Paris, or Munich.
Bureaucracy
Retiring in Switzerland requires getting a residency visa— a process that can be complex to navigate, especially for non-EU citizens.
In order to apply:
- You must be at least 55 years old
- Have proof that you have the means to pay for your living and healthcare expenses when you retire in Switzerland
- You have personal ties to Switzerland, such as your heritage, have been staying in Switzerland for a long time, have a business investment or real estate ownership
If you plan on not just retiring but also investing or working in a Swiss company, registering your vehicle or opening a bank account, there are other conditions and requirements you will need to fulfill as a British citizen. These conditions are all dependent on the specific canton you are applying in.
No Beaches
Switzerland is a landlocked country so don’t expect stunning shorelines and beach vibes. However, it compensates for this con with its stunning rivers and lakes, which are more breathtaking because of the view of the mountains in the backdrop. Some of these bodies of water even have man-made beaches or sandy areas called lake beaches or river beaches.
If the yearning gets beyond you, you can enjoy the beach-like charm of Bains des Pâquis and Lido Luzern, where you can soak up the sun, feel the sand between your toes and take in views of crystal-clear waters.
Cost of Moving
Moving abroad, whether for retirement, work, or study, necessitates moving costs. You will have to plan and manage how to move, ship, or store your personal belongings.
The good news is, Gentlevan can help you make this transition with ease through our reliable team. We provide packing, storing and shipping solutions based on your specific needs to help your move to Switzerland be a hassle-free experience.
We also ensure that your prized possessions are taken care of through our storage and shipping services. We can provide an online quote based on the volume of your possessions, the distance of your location to our warehouse and the services you would like to avail.
The Swiss Escape
For UK citizens who are in the process of weighing the pros and cons of retiring in Switzerland, it's essential to list your priorities and assess your financial situation to ensure you can cover living expenses, taxes and other requirements.
If your finances align with the cost of living of this magnificent country, its many advantages—such as safety, natural beauty and high quality of life—can far outweigh the drawbacks.
With its appealing lifestyle and exceptional standards, Switzerland could very well be the perfect choice for the retirement you’ve always dreamed of.