The cost of living in Switzerland: is it the highest in Europe?

A closer look at the cost of living in Switzerland

You may have experienced this yourself whilst living in Switzerland, or you probably already know: the cost of living in Switzerland is high – very high indeed. In fact, in 2021, according to a study by the Federal Statistical Office, the general price level in Switzerland was nearly 60% higher than the European average. Housing, food, transport… Everything costs more in Switzerland than in other European Union countries. This is illustrated by the famous Big Mac Index, a tool for calculating purchasing power invented in the 1980s by The Economist magazine: Switzerland ranks second in the index, with a classic meal at the famous American fast-food chain costing US$6.71.

Why is Switzerland so expensive?

But why is Switzerland so expensive? Here are a few reasons to explain the high cost of living in Switzerland.

• High wages: the minimum wage in Switzerland is the highest among European countries, and the cost of living is naturally in line with this. For example, in January 2023, the minimum wage in the canton of Geneva was increased to 4,368 Swiss francs gross, or 4,400 euros. This is the highest minimum wage in the world. Housing, transport and food costs are particularly high in Switzerland, and even more so in the major cities.
• A strong currency: the Swiss franc is a strong currency. As a result, imported goods are more expensive for foreign visitors.
• Trade protectionism: Switzerland promotes its domestic economy and protects its national industries from foreign competition. It has introduced customs duties and import quotas, for example in the agricultural sector.
• High population density: in major cities such as Geneva, Basel and Zurich, housing costs are very high. Demand often outstrips supply in these areas. Land and property prices are soaring.
• In Switzerland, unlike in France, health insurance is paid for by the employee. It therefore represents a significant cost that must be deducted from their monthly income, as do tax liabilities, which vary from canton to canton. Contributions to the Swiss pension scheme, the LPP, must also be taken into account.

Which are the most expensive cities in Switzerland?

Quality of life, a wide range of efficient services, and employment opportunities: all of this comes at a price in Switzerland. The cost of living in Switzerland is very high, particularly in the major cities. Two Swiss cities even feature in the top 10 most expensive in the world: Zurich (number 4) and Geneva (number 7). Lausanne is the third most expensive city in Switzerland, followed by the capital, Bern, and Basel.

Price Monitoring

Have you heard of the Price Surveillance Office? It is an independent body responsible for analysing prices and identifying any potential price gouging on goods and services within the country. Also known as Monsieur Prix, its head receives complaints and disputes from consumers. Open to all, the Price Surveillance Authority can be contacted by all Swiss citizens, as well as by foreign workers. This body monitors prices in all public sectors, such as healthcare, pharmaceuticals, telecommunications…

Living in Switzerland: what is the cost of living?

The cost of living in Switzerland is particularly high compared to other countries. It is the most expensive country in Europe. What can you expect in terms of prices, and what budget should you set aside for living in Switzerland?

The cost of housing in Switzerland

Rent in Switzerland is the largest item of expenditure in a household budget. Although it varies from city to city and canton to canton, the price per square metre in Switzerland is, on average, 50% higher than in France.

• In Geneva, you can expect to pay an average of €1,870 a month in rent for a one-bedroom flat in the city centre, and €12,299 per square metre to buy a similar property.
• In Lausanne, renting a studio flat in the city centre costs an average of €1,661 per month.
• In Zurich, the average monthly rent for a one-bedroom flat in the city centre is €2,424.56.
• In Basel, renting a one-bedroom flat in the city centre will cost an average of €1,491.

The cost of food in Switzerland

If you live in Switzerland, you should therefore expect high costs, even for shopping at the market and in the supermarket. Meat, for example, is almost twice as expensive in Switzerland as the average across the 27 countries of the European Union. The same applies to oils and fats, which are 68% more expensive in Switzerland than in the rest of the EU.

Here are some examples of average prices in Geneva in 2023:

• A cappuccino in a café will cost you an average of €4.75
• A pint of draught beer costs around €8
• fresh oranges at €3.16 per kilogram
• a loaf of fresh bread at €2.60 per 500 g
• Artisanal and local cheese costs €18.33 per kilogram

What sort of food budget should you expect when living in Switzerland? According to the Swiss Federal Statistical Office, in 2019, expenditure on food and non-alcoholic drinks accounted for 6.6% of the average household budget. For a single person, you can expect to spend around CHF 450, or €469.26. The quality of food products in Switzerland is very high. The country is renowned for its delicious cheeses and fine chocolates. There are numerous large and small retailers, and their prices vary.

The cost of leisure activities in Switzerland

If you’re visiting or living in Switzerland, you’ll find that leisure activities and nights out can be quite expensive. If you’re planning a holiday in Switzerland, make sure to adjust your travel budget accordingly. Sports season tickets, cinemas and museums are pricey. Not to mention skiing trips, one of Switzerland’s major tourist attractions. Prices at Swiss ski resorts are traditionally 25 to 30% higher than those in France. There is, however, one exception: electronics! Electronic devices are cheap in Switzerland compared to the rest of the EU. A mobile phone, tablet or camera costs on average 22.3% less in Switzerland than in France.

Here are a few examples of prices for leisure activities and transport in Switzerland. Use a currency converter if you’d like to see the equivalent prices in Swiss francs.

• A monthly gym membership costs an average of €83
• The Swiss Museum Pass costs €184.52 and grants access to 500 museums for one year
• A cinema ticket costs an average of €19.50
• If you’re planning to go skiing in Switzerland, expect to pay an average of €80 for a day pass at a major ski resort
• The average price of a bus ticket in Switzerland is €3.73
• In Geneva, a meal at a restaurant costs an average of €56.31 per person

Is the cost of living higher in Switzerland than in France? Definitely. The cost of living there is among the highest in Europe, and prices can sometimes take tourists and visitors by surprise! Nevertheless, is it worth living in Switzerland? Yes, if you earn a high salary and are able to save. You’ll enjoy an incredible quality of life, which attracts many expats every year. It is also worth noting that many French people have chosen to work in Switzerland whilst continuing to live in France. This cross-border lifestyle offers numerous financial advantages. To compare price differences between Switzerland and France, you can use b-sharpe’s euro-Swiss franc converter, a reliable tool updated in real time.