Saving money in Switzerland as an expat

As an international resident in Switzerland, you’ll experience a high standard of living, but that also means rent, health insurance and groceries can consume a large share of your income. Smart financial planning helps you balance these costs and make the most of your time here. 

From taking advantage of supermarket loyalty programs to reducing banking and currency conversion fees with services like Wise, there are practical ways to ease the pressure on your budget. This guide explores the main expense areas expats face, along with actionable steps you can take to save money on everyday expenses while keeping your lifestyle in balance.

Understanding the cost of living in Switzerland

The cost of living in Switzerland differs depending on where you live – for example, if you’re located in a major city or a smaller town Before moving or budgeting, it helps to research local prices for the things you’ll spend most on, like rent, food, transport and utilities, so you can stay one step ahead.

Housing and rent

Rent for a one bedroom apartment in a city centre such as Zurich, Geneva or Basel tends to be much higher than outside the centre or in smaller towns. Shared flats or co-living arrangements are often much cheaper and populer with students and young internationals. Compare listings in different areas and consider making some trade offs, like commuting time versus cost.

Utilities and internet

If you’re living in an alpine region, be prepared for high heating and electricity costs in the winter. Good insulation, efficient heating systems and energy saving habits help to reduce bills. Shop around and compare providers where possible and check if you can get a good deal on an internet, TV and phone bundle.

Health insurance (Krankenkassen)

Basic health insurance is compulsory, with annual deductibles ranging between 300 and 2,500 francs depending on the canton and deductible choice. Opting for a higher deductible lowers your premium but increases out-of-pocket expenses when you need care.

Transport

Swiss public transport is reliable and far-reaching, but not cheap. Even owning a car comes with its own expenses like high insurance, fuel and parking costs. Monthly or annual passes can save money if you travel regularly and cycling or combining transport modes can often be more affordable.

Food and groceries

Grocery prices in Switzerland are among some of the highest in Europe. Local and seasonal produce is usually cheaper, and supermarkets such as Coop and Migros, along with budget brands like M Budget or Prix Garantie, are common options. Planning meals, bulk buying and limiting restaurant visits all help control costs.

Regional differences

Zurich and Geneva rank among the world’s most expensive cities, with Basel and Lausanne not far behind. Bern is slightly more affordable, and rural cantons generally have lower rents and insurance premiums. Some border residents shop in Germany, France or Italy for groceries and household goods, while mountain resorts see prices spike during ski season. However, exchange rate shifts affect purchasing power if you earn or shop across the border in another currency.

Use Wise to manage exchange rate and international finance costs

Many expats in Switzerland shop or travel across the border to Germany, France or Italy to cut costs, which often means paying in different currencies. If you also move money into Switzerland or receive income from abroad, Wise helps you avoid the poor exchange rates and hidden fees that banks often charge. 

With a Wise Account, you can hold balances in more than 40 currencies, switch between them at the mid-market rate, and pay with a linked debit card that works in Switzerland and neighbouring countries.

Saving on housing and accommodation costs

Housing is one of the highest expenses for expats in Switzerland. Rents in prime locations can strain a budget, but there are many ways to bring those costs down without giving up too much convenience or safety. In many cases, a slightly different choice in location, type of lease, or heating setup can lead to significant savings.

Finding affordable housing

Rents vary widely across the country. According to Numbeo, a one-bedroom apartment in a Swiss city centre averages about 1,600 CHF, compared with 1,350 CHF outside the centre. A three-bedroom city apartment can reach nearly 2,900 CHF, making flat-sharing a common choice for expats and students.

How to reduce costs:

• House-sharing and co-living: Many expats in Zurich, Geneva and Lausanne share apartments to lower monthly rent and utilities.
• Student and corporate housing: Universities and larger employers often provide more affordable housing options that may include utilities.
• Negotiating lease terms: Longer rental agreements or flexibility on move-in dates can sometimes lead to small reductions.
• Exploring suburban areas: Towns within commuting distance of major hubs like Zurich or Basel often offer lower rents while still providing access to transport links.

Reducing utility costs

On top of rent, running a household in Switzerland brings noticeable extra costs. Heating through long winters and staying connected with internet and mobile services can easily add a few hundred francs each month. Basic utilities for an 85m² apartment average 213 CHF, but in colder cantons bills can be even higher. Internet typically adds around 48 CHF per month, and mobile plans average 34 CHF.

Simple changes that reduce expenses:

• Energy efficiency: Insulation and careful thermostat settings can noticeably lower heating bills. The SwissEnergy programme also provides incentives and guidance on reducing energy use.
• Bundled services: Internet, mobile and TV are often cheaper when purchased together, so it pays to compare combined packages.
• Daily habits: Small choices, such as turning the heating down a degree, shifting electricity use to off-peak times, or connecting to free Wi-Fi in public spaces, help keep recurring costs under control.

Food and grocery savings

Eating and buying groceries in Switzerland can be expensive compared to many countries. Inflation for food and non-alcoholic beverages has recently been negative (around -0.5%), meaning prices are slightly easing compared with last year. However, everyday items cost more, for example a loaf of white bread is about 3.04 CHF, 1 kg of rice is 3.44 CHF and 1 litre of milk is 1.78 CHF. A cheap meal out typically costs about 25 CHF, while a three-course dinner for two in a mid-range place will run you around 100 CHF.

However, there are ways you can keep food costs under control, such as choosing the right supermarkets to adjusting how and where you eat out.

Smart grocery shopping

From choosing budget chains to picking seasonal produce and taking advantage of store loyalty programs, shopping habits can noticeably lower your weekly bills.

• Budget-friendly chains such as Denner, Aldi Suisse and Lidl typically undercut Coop and Migros on price.
• Choosing seasonal and local produce lowers costs, like Swiss apples average 3.01 CHF per kg, while imported tomatoes can reach 4.98 CHF per kg.
• Bulk purchases for staples like rice or potatoes help bring down per-meal costs.
• Store loyalty cards (such as Coop Supercard or Migros Cumulus) and discount apps provide points and cashback that add up over time.

Eating out and entertainment on a budget

Instead of cutting dining and leisure completely, look for alternatives that provide value. Lunch menus are often priced lower than dinner, and many towns host free festivals or cultural events that add variety without adding cost.

• Opt for happy hour and lunch specials instead of dinner – many restaurants set midday menus at lower prices.
• Fast food remains cheaper, with a McMeal averaging 15 CHF compared to sit-down meals.
• Cities and towns host free cultural events, concerts and open-air festivals throughout the year, providing entertainment without the high price tag.
• Expats and students can benefit from discount cards that reduce entry fees to cinemas, museums and public attractions.

Consider shopping over the border

For many expats and residents in border cantons, shopping in Germany, France or Italy is a well-established way to save money. Prices for groceries, cleaning products and household items are often significantly lower than in Switzerland, and the savings can be even greater when VAT refunds are factored in.

• Lower VAT in neighbouring countries: Swiss VAT is around 8%. Shoppers who buy in Germany, France or Italy can often claim back the higher VAT charged there, avoiding the Swiss rate until they return.
• Lower base prices: Even before taxes, everyday goods such as food, toiletries and cleaning products tend to be cheaper across the border than in Swiss supermarkets.

From 2025, the Swiss government is lowering the tax-free allowance from 300 CHF to 150 CHF per person per day. As a result, more purchases will be subject to Swiss VAT, but many households may still find cross-border shopping worthwhile for larger or combined trips.

Transportation costs

A one-way local ticket in Switzerland costs about 3.45 CHF, and a monthly pass averages 80 CHF, with higher prices in cities like Zurich and Geneva. Petrol sits around 1.80 CHF per litre, while taxis start near 6.50 CHF before distance and waiting charges are added. With costs like these, many expats turn to public transport passes, bike-sharing schemes or car-sharing services instead of relying on ownership.

• Public transport passes: Monthly and annual passes offer better value than single tickets if you commute regularly. Many cantons also have half-fare cards or saver day passes.
• Bike-sharing and walking: Cities like Zurich, Basel and Geneva have extensive cycle lanes and public bike-sharing schemes, making it easy to cut short-trip costs.
• Car-sharing vs ownership: Services such as Mobility let you use cars only when needed, avoiding insurance, maintenance and parking fees.

Regional and national deals: The Swiss Half Fare Travelcard and other discount cards can cut train and bus fares across the country, particularly useful if you travel between regions.

Banking and financial costs

Banking in Switzerland is reliable, but like in most countries, it’s rarely free. Most accounts come with monthly maintenance charges, debit card fees, or extra costs for withdrawing money abroad. For expats, it’s common to also face non-resident account fees, which can reach several hundred francs each year. Credit cards are widely available, but annual fees and high interest rates on balances make them an expensive way to borrow. 

These costs can quickly reduce the value of your income if you’re not paying attention. Comparing account options and using alternative providers for international payments helps keep more of your money in your pocket. 

Ways to save on banking costs in Switzerland include:

• Look for basic or student accounts that waive monthly fees if you meet certain conditions, such as keeping a minimum balance.
• Avoid non-resident fees where possible. Some cantonal banks and neobanks may have lower charges for expats, while traditional banks often add around 300 CHF per year.
• Choose credit cards carefully. If you only need a card for everyday spending, focus on low-fee options rather than rewards cards with high annual charges.
• Use multi-currency accounts such as Wise for payments abroad, which avoid the markups banks add when converting from Swiss francs into other currencies.
• Limit ATM fees by withdrawing larger sums less often, or by using your bank’s own network of machines.

Keep more of your money when living abroad with Wise

Wise isn’t a bank, but it can be a useful complement to a Swiss account. With a Wise multi-currency account you can hold money in over 40 currencies, including CHF, and switch between them at the mid-market exchange rate. There are no monthly account fees, and the only upfront cost is ordering the debit card that works in 150+ countries with no foreign transaction fees. For expats, being able to receive payments from abroad or move money home without the usual bank markups makes Wise a practical way to cut costs.

While it’s still important to keep a Swiss bank account for local obligations such as rent, salary deposits, and bills, Wise is a reliable secondary option that handles the international side of your finances more affordably.

Tax considerations:

Switzerland taxes at three levels: federal, cantonal and municipal. Federal rules are uniform and each of the 26 cantons sets its own laws.  Municipalities apply multipliers, so your final bill depends heavily on where you live. 

The top federal income tax rate is 11.5%, and cantonal and municipal income taxes are also progressive, with combined top rates that can range roughly from 8.05% to 33.63%. Choosing a place of residence is therefore a key part of tax planning.

What to know as an expat

• Rates vary by canton and commune: There is no meaningful “average” rate because calculations are case by case. Cantons also levy annual wealth tax on net assets, usually on a progressive scale.
• Withholding at source (Quellensteuer): If you work in Switzerland without permanent residence, your employer normally deducts tax at source. This ends once you obtain a C permit or similar status, after which you file a full return. 
• Church tax: Most cantons charge it if you are registered with a recognised denomination. Those outside the official churches are generally not liable. 
• Wealth tax: Most cantons tax net wealth after deducting debts. Assets include bank balances, securities, real estate and other valuables.  thresholds, bands and rates are set locally, and rates are progressive up to a canton-specific cap.

Pillar 3a: a common way to reduce your bill

• Contributions to a Pillar 3a account can be deducted from taxable income. For employees affiliated to a pension fund, the annual cap is published each year – for 2025 the maximum amounts are 7,258 CHF for insured persons/employees with a pension fund or 36,288 CHF, or a maximum of 20% net income for those who are self-employed and without a pension fund.

Choosing the right account

There’s no shortage of banking options in Switzerland, which gives you plenty to choose from. But with that choice also comes very different fees and features, which is why it’s worth taking the time to compare accounts before deciding.

• No-fee banking options: Some cantonal banks and specialist providers offer free private accounts or waive fees if you meet conditions such as maintaining a minimum balance. These can be a good starting point for expats who want to avoid high monthly charges.
• Pricing structures: Traditional banks often charge separate fees for account management, debit cards and paper statements. Comparing the total annual cost rather than just the advertised monthly fee helps you see the real price of an account.
• Multi-currency accounts: Options like Wise let you hold and convert between CHF, EUR, USD and more at the mid-market rate, cutting the cost of international transfers and card spending abroad. 

ATM fee strategies: Using your bank’s own network or withdrawing larger sums less frequently reduces cash withdrawal costs. Some international cards also refund ATM fees, which can be valuable if you travel or cross the border often.

Managing your finances internationally

Most expats still need to move money in and out of Switzerland, so keeping an eye on exchange rates and transfer costs is essential. A few simple practices help:

• Avoid conversion fees: Use accounts that show the real exchange rate without adding hidden markups. Multi-currency accounts like Wise let you hold balances in 40+ currencies, so you only convert when the rate works for you.
• Check the mid-market rate: Knowing the actual rate helps you see if your bank or provider is adding unnecessary costs. Wise always uses the mid-market rate, which is often cheaper than the rates offered by traditional banks.
• Time your transfers: Moving larger amounts less often can lower the total fees you pay. Wise also offers discounted rates for transfers over the GBP 20,000 equivalent, which makes a big difference if you need to move larger sums.
• Think about tax efficiency: Keep in mind how foreign income, savings or investments are treated in both Switzerland and your home country to avoid double taxation.

Saving on healthcare and insurance costs

Healthcare in Switzerland is among the best in the world, but quality comes at a price. Everyone living in the country must take out private health insurance, which covers basic services. The average premium in 2025 is 378.70 CHF per month, up 6% from the previous year, and families or older adults often pay more depending on their canton and chosen deductible. On top of premiums, you’ll cover an annual deductible (minimum 300 CHF, maximum 2,500 CHF) and a 10% co-payment for treatments, capped at 700 CHF per year.

Keeping costs manageable means paying attention to the insurance model you choose and making small adjustments to how you use healthcare.

Ways to reduce healthcare spending:

• Choose cost-effective insurance plans: Opting for a higher deductible lowers your monthly premium and models that require you to see a family doctor first often cost less.
• Look into premium reductions: Low-income households and families with several children may be entitled to cantonal subsidies that offset part of the monthly premium.
• Use preventive care and wellness benefits: Regular check-ups and lifestyle programmes offered by insurers can help reduce long-term costs.
• Pick generics over branded medication: Pharmacies are required to offer cheaper generic options when available, which can cut prescription costs significantly.

Building an emergency fund as an expat

Unexpected costs are all part of life abroad, whether it is a sudden health bill or needing to travel home at short notice. Having money set aside gives you a financial cushion and the confidence that you can handle surprises without relying on credit. Most financial advisers suggest keeping enough for three to six months of living costs, though you may want more if you have dependents or less stable income.

Where you keep that fund matters. A standard Swiss savings account is secure, but the interest rates are modest, so the focus should be on accessibility rather than returns. Expats also benefit from flexibility: keeping part of the emergency fund in Swiss francs for local bills and part in another currency for cross-border needs can be a practical setup. With a Wise account, you can hold money in multiple currencies in one place and access it easily if you need to move or withdraw funds quickly.

Long-term financial planning

Day-to-day budgeting helps you stay comfortable in Switzerland, but thinking ahead is just as important. As an expat, you may have to make decisions about investing, retirement savings and whether to buy property or continue renting. Planning for eventual repatriation, or even a move to another country, should also factor into your long-term approach.

• Investment opportunities: Switzerland has a stable financial system with access to both local and international markets. Many expats choose diversified investment funds or ETFs, but check how taxation applies to your residence status before committing.
• Retirement planning: Contributions to the Swiss three-pillar system build over time. Expats can often benefit from voluntary Pillar 3a contributions, which reduce taxable income and help secure retirement savings if you plan to stay for several years.
• Property investment vs renting: Buying property in Switzerland is possible for foreigners in certain cases, but restrictions apply depending on your residency permit and canton. For many expats, long-term renting remains the more flexible choice.
• Repatriation planning: If you expect to move again, consider how your assets and pensions will transfer. Check whether you can withdraw Pillar 2 or 3a savings when leaving Switzerland and look into potential double taxation agreements with your home country.

Conclusion

Adjusting to life in Switzerland involves navigating some of Europe’s highest expenses, but practical decisions can keep your finances balanced. From housing to groceries, transport to banking, expats can ease the pressure on their budgets with a bit of planning and flexibility.

Key takeaways:

• Compare housing options carefully – shared flats, smaller towns, or longer commutes can cut monthly rent.
• Use loyalty cards, discount chains and cross-border shopping to bring down food and grocery bills.
• Take advantage of public transport passes or bike-sharing instead of relying on cars and taxis.
• Review your bank account and international transfer options to avoid unnecessary fees.
• Build an emergency fund and explore retirement and investment tools that fit your long-term plans.

Financial stability comes step by step, and every adjustment helps you feel more secure in your new home. To keep your international finances running smoothly, explore how a Wise multi-currency account can help you manage money across borders with lower costs and more control.

Useful resources

Federal Office of Public Health: Official information on Swiss health insurance, healthcare costs, and coverage (checked September 2025).

State Secretariat for Migration: Guidance on residence permits, registration duties, and expat rights (checked September 2025).

Swiss Federal Tax Administration: Details on federal, cantonal, and municipal tax obligations (checked September 2025).

Comparis: Independent comparison site for Swiss insurance, banking, and telecom providers (checked September 2025).

Wise: Multi-currency account with transparent exchange rates for international money management (checked September 2025).