A tranquil, peaceful and safe country, Switzerland’s appeal is undeniable. But can US citizens retire here?
As citizens of a third-country, Americans don’t have as easy access to Switzerland – for the purpose of living here, rather than merely tourism – as nationals of the European Union and EFTA (Norway, Iceland, and Liechtenstein).
So if you dream of spending your retirement here, you will have to jump through some administrative hoops, but you could be successful in the end.
Here’s what you need to know.
How can Americans retire in Switzerland?
There are two broad categories of Americans wanting to retire in Switzerland: those who already live here with valid working permits – and those who live in the United States.
If you worked or are working in Switzerland on a valid residence permit, retirement is unlikely to be difficult at all.
If you fit into this category, then please check our our extensive guide on pensions in Switzerland.
READ ALSO: How does the Swiss pension system work – and how much will I receive?
But if you currently do not live in Switzerland, or have a Swiss residence permit and would like to retire here, this is still possible.
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How can non-residents including Americans retire in Switzerland?
In order to be granted a visa to retire in Switzerland, you need to adequate financial resources and proof you will not look for work in Switzerland.
What exactly does it mean?
This how the government defines it: “financial means are deemed adequate if the amount exceeds the threshold whereby a Swiss national would be entitled to claim supplementary benefits.”
This means you should have more money NOT to rely on social assistance in Switzerland.
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How does the process work?
You must first apply for a visa with a Swiss diplomatic/consular mission in your country of residence, i.e. in the United States.
First, they will check that you don’t have any criminal records.
You must be 55 years of age or older to move to Switzerland from abroad in order to retire. The Swiss retirement age is 65.
You will need to demonstrate a close link to Switzerland.
This can be past residency, family ties or even frequent holidays in Switzerland can suffice as evidence of a close connection.
Real estate can be a factor, although keep in mind that owning property in Switzerland is no guarantee of a close connection.
READ ALSO: Does owning a second home in Switzerland give me the right to live there?
You do not have to transfer the bulk of your financial interests to Switzerland, although this is likely to help illustrate that you have enough financial resources to move there.
You can transfer your pension to Switzerland provided there’s a bilateral arrangement with your country of origin. More information is available here.
The eventual decision is made by cantonal authorities and is often highly discretionary.
READ ALSO: How to get a visa to retire in Switzerland
The eventual decision is made by cantonal authorities and is often highly discretionary.
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Money helps grease the wheels
A little-known article of the Swiss law — Article 30 of the Federal Aliens Act — allows wealthy foreigners from outside Europe to move to Switzerland.
Cantons can issue residence permits B to these people, if local authorities deem that there is a “significant fiscal interest” in such a move.
READ ALSO: Everything you need to know about ‘buying’ Swiss residency
What exactly does “significant fiscal interest mean?”
This term is defined by each canton.
For instance, the lowest annual tax rate for a non-EU foreigner is 287,882 francs in Valais, 312,522 francs in Geneva, and 415,000 Vaud.
Every year, around 40 to 50 people ‘buy’ their way into Switzerland this way, as reported by TagesAnzeiger, which used the numbers published by the State Secretariat for Migration (SEM).
How much should you save for a ‘comfortable’ retirement in Switzerland?
To maintain the usual standard of living during retirement, residents of Switzerland need more savings nowadays than four years ago, according to an analysis by UBS bank, which compared the pension systems of 24 countries.
In 2017, the last time UBS conducted a similar study, that number was 11 percent.
The new UBS International Pension Gap Index found that “the Swiss pension system still enjoys a high reputation. However, contrary to other countries, it is more difficult to push through urgently needed reforms to ensure this reputation will last”.
READ ALSO: How much should you save to retire in Switzerland?
