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Top 3 Disadvantages of Moving to Switzerland
20 March 2025 9681 10According to international statistics, Switzerland is the fourth richest country in the world. The fact that relatively high salaries are paid and that it can be very attractive tax-wise for self-employed individuals and entrepreneurs makes many consider leaving their home country and relocating to Switzerland.
But what about 2025? Is Switzerland still as attractive as a location? In this video, we won’t focus too much on cultural differences or how easy it is to integrate into Swiss society. Instead, we’ll focus on the financial aspects, which, according to surveys, are the main driving factor for moving to Switzerland.
Here are the 3 biggest disadvantages of settling in Switzerland:
1. Profitability only at higher income levels
Many people move to Switzerland with the idea of earning more as an employee. While this is true, the cost of living, health insurance, and general expenses are also extremely high. For those who strictly save their surplus salary, cook at home, and rarely participate in social activities, it is certainly possible to save a decent amount each month.
However, if you want to go out and do activities with your family, this will heavily impact your budget and can quickly make moving to Switzerland financially unviable.
The same applies to self-employed individuals and entrepreneurs earning less than 100,000–200,000 CHF. Setting up a company domicile in a tax-friendly canton is not yet cost-effective, and the personal income tax rate (e.g., in Zurich) is progressive, reaching up to 35%.
2.) Starting a company in a tax-friendly canton
Anyone who has looked into Switzerland and its low-tax opportunities has likely heard of Canton Zug—one of the most tax-efficient cantons in the country. If you’re going for it, why not go all the way? Live abroad or even in Zurich, while domiciling your company in Zug!?
What worked perfectly for decades has now become a problem. For years, thousands of shell companies with no real substance were tolerated by the Swiss government. But those days are over, and now there is a risk of backdated tax payments going back several years.
3.) Living outside major cities like Zurich, Geneva, or Basel
Switzerland’s major cities have seen a significant influx of immigrants from various countries in recent years. Despite the strong national pride of the Swiss, migrants and other cultures are becoming more accepted. However, the “Dütsche” (Germans) or “Swiss Albanians” are still viewed with skepticism by some traditional Swiss citizens.
Swiss German is a must. A Swiss person is reluctant to speak High German and won’t make exceptions for newcomers—and that’s their right. However, in rural areas, there is often a harsher attitude toward foreigners and immigrants..
If you’ve reached the point where you seriously want to reduce your company’s tax burden—or better yet, find an alternative before starting your business to pay only a fraction of the taxes—then listen carefully now.
Didn’t we mention an alternative at the beginning—with an alleged tax burden of only 1%. That’s absolutely right. Congratulations on making it this far in the article!
For all entrepreneurs and self-employed individuals looking for a way to save taxes, we at GO EU offer a solution that is fully recognized by local tax authorities and does not require relocation. This is our 1% tax model!
With the 1% tax model, you pay only 1% tax on annual revenue up to €250,000 and are even exempt from VAT if your revenue is up to €60,000 per year
All of this within the EU, with no shady gray areas, no risky offshore structures, and no need to relocate your residence. This model is fully recognized by the local tax authorities, and you can even get official confirmation in advance!
Does this sound interesting to you? Then click the link below – “Request Now”! We look forward to hearing from you!
Update 2025: 10 Minutes initial consultation 100% free
Inquire now
Dietmar Keil
Published on 18 May, 2024 / Answer
If you drive too fast, your car can be seized quickly. 31 km/h over the speed limit, and your driver’s license is gone for the next 3 months, along with a criminal record. Wrong parking can cost hundreds of francs. I advise against it!
Siegfried
Published on 24 May, 2024 / Answer
Moving to Switzerland: A major downside is the private healthcare system with high out-of-pocket costs. If you live in Switzerland, you are required to get Swiss health insurance within three months, and it has to be paid privately. You won’t find anything for less than 300 francs. Typically, it starts around 500 CHF for decent coverage, with no 2k CHF excess.
Karl Heinz
Published on 29 May, 2024 / Answer
I’ve experienced it myself! Switzerland is definitely not worth it. With children, it costs 2,000 francs a month for a kindergarten spot! re there any problems if I live in Germany but want to start a company in Romania or Bulgaria?
Thomas Hofmann
Published on 30 May, 2024 / Answer
Starting a company within the EU is a common process that happens daily, including cases where the founder’s main residence and place of living are not in the country of incorporation but rather in their home country. The incorporation itself is not an issue. Regarding tax recognition by the home country’s tax authorities, it is important to note that everything is based on the Double Taxation Agreement (DBA). As long as its guidelines are followed, recognition is ensured. This approach is used by hundreds of thousands of businesses and is a completely standard process, not a legal gray area.
Karsten O.
Published on 25 June, 2024 / Answer
I am interested in starting a company. Are you available by phone?
Thomas Hofmann
Published on 25 June, 2024 / Answer
We are available by phone on weekdays during regular office hours. We always appreciate direct calls. An initial consultation, including advice, is always free of charge.
Irmgard
Published on 26 June, 2024 / Answer
Disadvantages: Difficult adjustment for immigrants, high cost of living, expensive public transportation, very high rents, language barrier is a major challenge.
Jordan
Published on 16 September, 2024 / Answer
Interesting approach here! Romania yes please! Switzerland, no thanks! Not everything needs to be over-regulated. In Romania, there is warmth and no snitching, like there can be in Switzerland! Informing on others is common in Switzerland. No way I’d want to live there.
Reto Matter
Published on 06 January, 2025 / Answer
If everyone starts coming to Switzerland… please, no! Romania and Bulgaria—now you know!
Stephan L.
Published on 26 March, 2025 / Answer
Moved to Switzerland and got told off by the neighbors for doing laundry on the wrong day. Feels less like freedom, more like living in a prison.
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