Living and Working in Switzerland
High Prosperity and Low Taxes
High Prosperity and Low Taxes
Switzerland has the second highest purchasing power per capita in Europe (income, less taxes and social security contributions). Even after deducting living expenses, Switzerland remains in second place (real purchasing power per capita). This means that in Switzerland, there is more money left over for family, free-time, travel, and pension savings (according to MB-Research Europadaten 2006).
So it’s not surprising that Switzerland has the second lowest rate of income tax in Europe, with an average rate of 5 – 20%.
Switzerland also has by far the lowest rate of VAT in Europe. The average rate is 7.6%, and some goods and services are even lower than this, or not taxed at all.