If you have just arrived in Switzerland, or are about to do so, you may not be aware of the financial obligations that will be imposed on you. Here’s what you should know.
Certain fees are so-called ‘no-brainers’ – for instance taxes, which you need to pay almost anywhere in the world (but we will come back to this momentarily).
Then there are the usual ‘compulsory’ charges like your rent or mortgage, as well as utilities such as your electricity and water bills, along with other district fees.
But there are also some that you may not have known about simply because you didn’t have to pay them in your home country, and you may not have done your due diligence about these requirements before moving to Switzerland.
First, let’s go back to taxes
You already know you will have to pay taxes, but their structure may differ from the system you are used to.
In a nutshell, the Swiss system is based on three levels of taxation: federal, cantonal, and municipal, and you will have to pay all of them.
But there are also wealth taxes, which may be a new concept to you.
As the name suggests, it is a tax levied on all your assets, both in Switzerland and abroad.
Basically, almost everything you own is taxable, though from a purely practical point of view, it would be difficult for the authorities to tax these smaller objects if you don’t declare them.
You can find out more about this tax here:
READ ALSO: Does everyone have to pay Switzerland’s wealth tax?
You could also be liable to other taxes, which are listed here.
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Health insurance
Basic insurance — KVG in German and LaMal in French and Italian — is compulsory.
As soon as you settle in Switzerland, you will receive a letter from your canton telling you to purchase, within three months of your arrival, a health insurance policy for you and all the members of your family from one of the dozens of approved providers.
After you do so, you must send the authorities a copy of your policy to prove that you have one.
Without a health insurance policy, you will not only be refused medical care other than for vital emergencies, but you will also not be able to register at your commune of residence, rent an apartment, get employment, and be denied many other services as well.
Some people are, however, exempted from having to purchase a health insurance policy:
You are not required to take out Swiss insurance if:
- You are retired and get a pension exclusively in an EU or EFTA state
- You are a cross-border worker with healthcare policy in a EU or EFTA state
- You are a foreign student and have comparable insurance from your country
- You work for international organisations or are a diplomat
Accident insurance
Your employer is required to take out accident insurance for you, deducting the premium from your salary.
In case you are registered as self-employed, you must take out personal accident insurance yourself.
Everyone else — stay at home parents, students, and pensioners — are covered against accidents through the compulsory KVG/LaMal insurance.
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Car insurance (if you own a vehicle)
It is illegal in Switzerland (as in many other countries) to drive without the third-party vehicle liability insurance, which covers damage caused to other drivers and their cars.
You are free to take out upgraded insurance coverage that also covers your own vehicle — as most people do — but the third-party one is the only one required by law.
There are plenty of other insurances you may want to take up for your own protection, but they are optional rather than obligatory:
READ ALSO: Which Swiss insurance policies do you really need to have?
And…if you do own a vehicle, you are also obligated to pay 40 francs for an annual vignette, without which you won’t be able to drive on the country’s motorways.
TV license
Many foreigners who move to Switzerland are surprised to discover that they are automatically charged a TV and radio license fee – even if they don’t own either.
This fee is compulsory for most households.The amount of 335 francs is the same for all private homes, regardless of how many people live there.
The bill is automatically sent out once a year by a company called SERAFE, which collects this fee on behalf of the government from private households. The Federal Tax Administration is responsible for collections from businesses.
READ ALSO: What is Switzerland’s TV license fee and can you avoid paying it?
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Trash disposal fee
You will most commonly pay this by purchasing taxed garbage bags or stickers for your waste.
If you think you can avoid this charge by using non-reglementary trash bags – you can’t.
And If you try anyway, all kinds of bad things can happen to you, as described here:
READ ALSO: Why the Swiss government rummages through your garbage
Additionally, some communities charge an annual waste management fee which you will have to pay as well if your town has it.
