What insurance is needed for expats in Switzerland: A comprehensive guide

Discover what insurance is required for expats in Switzerland to ensure a smooth transition. Our guide covers the most important insurance policies and the Swiss pension system and supports you when moving to Switzerland with the expert knowledge of The Valencia Company.

The table of contents:

• introduction
• The onslaught of expatriates in Switzerland
• Take out the right insurance in Switzerland
• Mandatory insurance:
• Recommended insurance:
• Guarantee protection against unforeseen events:
• Navigating through the Swiss accrual system: The three pillars
• bagging

Switzerland, a country with charming landscapes and a high quality of life, attracts expatriates from all over the world. Moving to a new country, however, presents a number of challenges and questions, of which insurance is at the top of the list.

This article provides a guide for anyone who wants to settle in Switzerland — from understanding the onslaught of expatriates to key insurance policies to navigating the Swiss pension system.

The Valencia Company is committed to providing tailor-made solutions that meet the diverse needs of our customers and ensure a seamless and well-informed transition to life in Switzerland.

The onslaught of expatriates in Switzerland

Switzerland, with its picturesque landscapes and high standard of living, has seen a remarkable influx of expatriates. In 2018 alone, the country welcomed over 170,000 new residents, a significant number of whom were expatriates. These people, often highly qualified specialists and managers, are usually sent by global companies for assignments lasting several years. Despite the appeal of Swiss life, many expatriates regard their stay as temporary, as shown by the 126,000 people who left the country again in the same year.

Expatriates face a number of challenges if they want to adapt to Switzerland's cultural, social and bureaucratic landscape in a relatively short period of time. The first questions most expatriates ask themselves include insurance, finding accommodation and an understanding of the Swiss pension system.

Take out the right insurance in Switzerland

Understanding and purchasing the right insurance is a primary concern for expatriates in Switzerland. The following is an overview of the most important points:

Mandatory insurance:

Health insurance:

All residents are required to take out health insurance within three months of their arrival in Switzerland.

The healthcare system in Switzerland is of high quality, and insurance ensures that you have access to the best medical care when needed.

Liability insurance:

If you own a motor vehicle, liability insurance is mandatory.

Building insurance is also a must for homeowners to protect themselves against possible liabilities in connection with real estate ownership.

Recommended insurance:

Private liability insurance:

Although this insurance is not mandatory, it covers claims arising from damage to third parties. However, if you want to rent an apartment, it is often mandatory.

It serves as a safety net against unforeseen liabilities and offers the insured person a sense of security.

Home insurance:

This insurance protects your belongings against potential risks such as theft, fire or water damage and ensures that your personal belongings are covered in the event of unforeseen events.

Guarantee protection against unforeseen events:

For employees who work more than eight hours a week, the employer offers accident insurance. Non-working family members, including spouses and children, should opt for accident insurance through their health insurance.

The right insurance coverage is a crucial step for a smooth and successful life in Switzerland. It not only provides a safety net against the vagaries of life, but also ensures compliance with Swiss laws and regulations.

The Valencia Company is committed to introducing expatriates to the specifics of Swiss insurance requirements to ensure a seamless transition to life in this beautiful country.

With our professional advice, we would like to complete the process of understanding the question “What insurance is required in Switzerland for expats?” simplify and make the journey to Swiss residence a calming and informed path.

Navigating through the Swiss accrual system: The three pillars

The Swiss pension system, which is often referred to as the “Three Pillars”, is intended to ensure that you maintain the quality of life, especially in retirement.

They are an essential part of financial planning, which is crucial for expatriates who want to live well in Switzerland. Here is a detailed insight into the three pillars:

First pillar: AHV (government benefits)

Employees and employers pay monthly into this fund, which finances the pensions of current pensioners.

When you reach retirement age - 64 years for women and 65 years for men - you too can benefit from this fund.

Occupational pension: BVG

These are occupational pension funds that are intended to cover up to 75% of a person's last salary.

In contrast to AHV, this is a funded system. Each contribution directly benefits the contributor, which can be seen on the pension certificate.

Private pension

In order to close any financial gaps and further save, there are two types of private pension provision:

• Pillar 3a (tax-advantaged pension): It is limited to CHF 7,056 years per year (from 2023) and offers tax deductions.
• Pillar 3b (non-tax-qualified provisions): Offers more flexibility than 3a, but has no direct tax benefits.

bagging

Switzerland offers a unique mix of experiences and opportunities for expatriates.

Even though the transition may seem overwhelming at first, understanding the basics of insurance and the accrual system makes the process much easier.

Do you need professional help?

We from The Valencia Company We are committed to ensuring that your transfer to Switzerland is as smooth as possible.

Our expert advice on how to deal with Swiss insurance requirements and regulations should provide you with the necessary knowledge and confidence for a successful move.

Are you looking for personal advice on insurance or financial planning in Switzerland?

Our team is here to help you every step of the way. Get in touch with us today to find out more about how we can tailor our services to your individual needs so that your trip to Switzerland is well secured and financially secure. Your smooth transition to life in Switzerland is not only our goal, but our promise.

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The Valencia Company Team