New expats in Switzerland often move to Zürich or Geneva.

Because their employer has an office there.

Or because everybody knows these cities from movies and so on.

Sure, their fame is not entirely without reason.

But there are a lot of good reasons why you should not move either to Zürich nor to Geneva.

I fell into the trap myself

I am not just writing here in the hypothetical, trying to get your attention with some random catchy headline. I fell into the same trap that you will probably fall into and I don't want you to make that same mistake.

When I first moved to Switzerland in 2019, I actually made the same move as you probably are thinking of.

I came from Germany and all the tech jobs seemed to be in Zürich so that is where I moved.

Explain why moving to Zürich or Geneva can be a big overpriced mistake.

Alright, so what the hell is wrong with Zürich?

The main thing that is wrong with those big cities is: They are just too expensive.

It's like buying a Porsche Cayenne when all you really need is a VW Kombi at a fraction of the price, leaving more money to spend on the really important things in life.

According to Numbeo, both cities rank among the top 20 most expensive cities in the world. For instance, an average monthly rent in Zürich for a one-bedroom apartment is around CHF 2,200, and Geneva is around CHF 1,900. Also, groceries, transportation, and dining out are all costly.

Rents are crazy expensive

Since Zürich is so popular with expats and has attracted many well-paying companies like Google and IBM, rents have gone up a lot in Zürich and its immediate surroundings in the last couple of years.

The scarcity of affordable housing in these cities makes it challenging for newcomers to find affordable accommodation. This issue can be compounded by the extremely competitive job markets, making it difficult for individuals to manage their expenses and plan their financial future.

You can calculate with between 1'500 and 2'500 CHF of rent per person and month, depending a bit on the location and quality level you are looking for. Most flats that are significantly cheaper are limited to certain groups like students or people working for a specific company, so as a typical software developer or other professional, they are out of your reach.

Now you might say: But if I earn 10K a month, what is the problem?

Well, why waste thousands of CHF each year that you could save for your children's education or for buying a house a few years earlier? Be smart and don't do that.

Taxes are significantly higher than in geographically close alternatives

The next issue with Zürich and Geneva is its comparatively high taxes both on your personal income as well as for your business in case you are a freelancer with your own company.

For instance, the top marginal tax rate in Geneva is around 44 percent, while Zürich is slightly lower at 35 percent. Aside from income tax, sales tax, property tax, and other miscellaneous taxes can increase living expenses significantly.

Taxes in Switzerland depend on the canton and the city you live, since each of the three levels Swiss federation, canton and city/village imposes taxes on you.

So you can often save hundreds of CHF per month or thousands per year by moving to a different canton and a smaller share of that just by moving out of Zürich or Geneva out to the surrounding cities.

I often read on online forums and Facebook groups: "Places with lower taxes have higher rents."

While that is partially true, rents are typically not equally higher in tax-optimized cities, meaning you will still save a lot of money each year, even if your rent does go up.

And then in the end, it's not even always the case.

When I moved out of Zürich to the surroundings of Zug, my rent per room / square meter actually went down significantly without compromising much on the location.

So think of it this way: Taxes are basically part of your monthly rent.

Always sum up the rent, additional costs and income tax together to get the real cost of living in a particular location in Switzerland.

Health insurance cost is dependent on the canton

Another thing might surprise you (or not if you recognize a pattern):

Health insurance premiums vary by canton even though what you get is pretty much the exact same service.

When I moved from Zürich to the Canton of Zug, I saved about 80 CHF each month in health insurance. That's a whole thousand each year that I can now invest into more useful things.

Mind that my tariff did not change at all. The prices for the mandatory basic health insurance are just not the same everywhere in Switzerland.

Some better choices

So what is better than Zürich or Geneva?

Well, as always: It depends.

If you go by taxes alone and earn a lot (above 100K per year) , then the Central Region of Switzerland, i.e. Zug and Schwyz, would be high on your list.

However, other cities in Switzerland, such as Lausanne, Bern, or Basel, can offer a comparable quality of life without breaking the bank. It really depends on your salary level. These areas feature a friendly local culture, excellent public transportation, and more affordable housing options. Additionally, their proximity to Zürich or Geneva makes it relatively simple to access employment opportunities in those cities.

But if you consider Geneva, then moving halfway across the country and especially crossing language borders from French into German might not be your thing. In this case, you have to find other alternatives by digging a bit deeper in your criteria.

Don't just hang with the other expats

Finally, I have another recommendation: In Switzerland, it is way to easy to just hang with other expats, even from your home country. Since Switzerland is a super international country with one of the highest percentages of expats vs. non-expats population, it will be easy to find lots of people from not just the neighboring countries like Germany, Austria, France and Italy but also from the US, China or Russia.

But it would be sad in my view if you never connect to the "real Swiss", i.e. people who have lived there for many generations and can allow you to learn about the Swiss culture a bit more.

If you move further into the country, you can often not only save a lot of money, have more space, but you are also on the best way to enjoy more of the genuine Swiss culture.

In conclusion, while it may seem tempting to relocate to highly celebrated cities like Zürich or Geneva, such moves can be a costly mistake. By expanding your horizons and exploring other Swiss cities, you can find a much better quality of life while keeping your expenses in check.