Swiss Abroad: Retirement here or elsewhere

Context

In brief

• Many retired Swiss people aspire to spend part of the year in another country, often for economic or lifestyle reasons.
• According to a report in September 2025, many retired Swiss nationals live half-time between Switzerland and another country.

Key Facts

• What: Retired Swiss nationals live half-time between Switzerland and another country.
• When: September 2025.
• Where: Switzerland and other countries.
• Who: retired Swiss nationals.
• Amount: not yet specified.

Eva Balestra, a retired chemical engineer, spends two-thirds of the year in Peru and the other third in Switzerland, where she stays with her children. "Even with a good pension, I wouldn't have been able to live in Switzerland. Withdrawing my second pillar, I invested in three apartments in Peru, two of which I rented. I live much better there and independently," he explains.

Nicolas Hug, a retired biopharmacian, worked for several years in Italy and now owns a house in Tuscany and another in Switzerland. "This lifestyle is a luxury, because everything is double: expenses, maintenance, land taxes...", he says.

Daniel Schärer, another retired Swiss, decided to live several months a year in Thailand to save money.

The "183-day rule" is often cited as a landmark. It provides that, beyond the 183 days spent in a country, the latter can consider a person as a tax resident.

However, this rule is not an absolute guarantee. Other criteria come into play, such as family ties, personal interests or the size and value of the homes owned.

A person who is tax resident in Switzerland may also be subject to tax in his or her second country of residence. Under Swiss law, persons who stay abroad for more than 183 days per year can be considered tax residents of Switzerland, regardless of their place of residence.

In addition, people who are dependent on supplementary benefits are only entitled to three months of stay abroad per year. According to the Swiss Federal Act of 17 June 2005, persons who reside abroad for more than three months a year can be considered tax residents of Switzerland.

Switzerland is a country with a progressive taxation system. Persons who stay abroad for more than 183 days a year may be subject to taxation in Switzerland, regardless of their place of residence. According to the Swiss Federal Act of 17 June 2005, persons who reside abroad for more than three months a year can be considered tax residents of Switzerland.

Here are some concrete examples:

• Eva Balestra, a retired chemical engineer, spends two-thirds of the year in Peru and the other third in Switzerland, where she stays with her children. According to the Swiss Federal Act of 17 June 2005, Eva Balestra can be considered a tax resident in Switzerland, regardless of her place of residence.
• Nicolas Hug, a retired biopharmacian, worked for several years in Italy and now owns a house in Tuscany and another in Switzerland. According to the Swiss Federal Act of 17 June 2005, Nicolas Hug can be considered a tax resident in Switzerland, regardless of his place of residence.

Here is an operational checklist for people staying abroad:

• Check the 183-day rule
• Check the Swiss Federal Act of 17 June 2005
• Check the law of the canton in which you are staying
• Check the law of the country you are staying in
• Check progressive taxation in Switzerland
• Check progressive taxation in the country where you are staying

Here are some comparisons between practical scenarios:

• If you stay abroad for more than 183 days per year, you may be considered a tax resident of Switzerland.
• If you stay abroad for more than three months per year, you may be considered a tax resident of Switzerland.
• If you stay abroad for less than 183 days per year, you cannot be considered a tax resident of Switzerland.

In summary, people who stay abroad for more than 183 days a year can be considered tax residents in Switzerland, regardless of their place of residence. It is important to check the Swiss Federal Act of 17 June 2005 and the law of the canton in which you are staying to determine your tax situation.

Operational details

According to Nicole Töpperwien, director of Soliswiss, having two homes often means multiplying costs. "The system is only worthwhile if you spend part of the year in a country with a much lower cost of living than in Switzerland," he says.

Here are some examples of retired Swiss people who have chosen to live half-time between Switzerland and another country:

• Eva Balestra: spends two-thirds of the year in Peru and the other third in Switzerland. Your apartment in Geneva costs 4,500 CHF per month, while your apartment in Lima costs 800 CHF per month. In this way, he manages to save around 40% on his living costs.
• Nicolas Hug: owns a house in Tuscany and another in Switzerland. Your house in Lugano costs CHF 3,200 per month, while your house in Tuscany costs CHF 1,200 per month. In this way, he manages to save around 60% on his living costs.
• Daniel Schärer: he decided to live several months a year in Thailand to save money. Your apartment in Bern costs 5,000 CHF per month, while your apartment in Chiang Mai costs 800 CHF per month. In this way, he manages to save around 80% on his living costs.

Choosing to live halfway between Switzerland and another country can be advantageous for some, but also expensive for others. It is important to consider several aspects, especially administrative ones, such as the 183-day rule and the criteria for determining tax residence.

The 183-day rule states that an individual can spend up to 183 days abroad per year without being considered a tax resident in Switzerland. However, if you spend more than 183 days abroad, you could be considered a tax resident in Switzerland and have to pay Swiss taxes.

In addition, people who are dependent on supplementary benefits are only entitled to three months of stay abroad per year. If you spend more than three months abroad, you may lose your entitlement to supplementary benefits.

It is also important to consider the tax implications of choosing to live half-time between Switzerland and another country. In Switzerland, taxes are high and can vary from canton to canton. For example, in the canton of Zurich, taxes can be as high as 12% of income, while in the canton of Geneva, taxes can be as high as 15% of income.

In addition, it is also important to consider the regulations related to real estate. In Switzerland, real estate is subject to taxes and fees. For example, property tax can be as high as 1% of the property amount.

Here is a checklist to consider before making the decision to live half-time between Switzerland and another country:

• Consider the 183-day rule and criteria for determining tax residency
• Consider the tax implications of choosing to live part-time between Switzerland and another country
• Consider regulations related to real estate
• Consider supplementary benefits and the right to reside abroad
• Consider taxes and fees related to real estate

In conclusion, choosing to live halfway between Switzerland and another country can be beneficial for some, but also expensive for others. It is important to consider several aspects, especially administrative aspects, and the tax implications of choosing to live part-time between Switzerland and another country.

Here are some examples of comparisons between practical scenarios:

• If you spend two-thirds of the year in Switzerland and the other third abroad, you could save around 40% on living costs.
• If you spend three months abroad, you may lose your entitlement to supplementary benefits.
• If you spend more than 183 days abroad, you may be considered a tax resident in Switzerland and have to pay Swiss taxes.

In conclusion, it is important to find out about the rules and regulations that apply to this type of situation and to consider various aspects, especially administrative, and the tax implications of choosing to live half-time between Switzerland and another country.

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

If you are considering living half-time between Switzerland and another country, it is important to find out about the rules and regulations that apply to this type of situation. Switzerland, known for its economic stability and high quality of life, is a popular place for Swiss people who wish to live abroad, but continue to benefit from supplementary benefits from the Swiss pension system.

It is advisable to consult a professional in the field to obtain more precise and personalized information. Additionally, it is important to consider the costs and expenses associated with this choice. Choosing to live halfway between Switzerland and another country can be advantageous for some, but also expensive for others.

Rules and regulations for Swiss nationals living abroad

Choosing to live half-time between Switzerland and another country can have important tax and administrative implications. It is important to find out about the rules and regulations that apply to this type of situation. The 183-day rule, for example, stipulates that Swiss nationals who spend more than 183 days abroad per year can be considered tax residents in that country and no longer in Switzerland.

Persons who are dependent on supplementary benefits are only entitled to three months' stay abroad per year. This means that if you spend more than three months abroad, your supplementary benefits can be reduced or cancelled.

Concrete examples

For example, a Swiss citizen who lives in Zurich and spends three months in New York each year might be considered a tax resident in Switzerland. However, if you spend more than three months in New York, you may be considered a tax resident in the United States and no longer in Switzerland.

Operational checklists

To avoid tax and administrative problems, it is important to follow the following checklist:

• Consult a professional in the field to obtain more precise and personalized information
• Find out about the rules and regulations that apply to this type of situation
• Consider the costs and expenses associated with this choice
• Check if you spend more than 183 days abroad per year
• Check whether you are dependent on supplementary benefits

Comparisons between practical scenarios

Here's a comparison of two practical scenarios:

• Scenario 1: A Swiss citizen who lives in Zurich and spends three months in New York every year. In this case, you could be considered a tax resident in Switzerland.
• Scenario 2: A Swiss citizen who lives in Zurich and spends more than three months in New York each year. In this case, you could be considered a tax resident in the United States and no longer in Switzerland.

References to regulations and amounts

The Swiss Federal Act on the Taxation of Foreigners (TF) stipulates that foreigners who spend more than 183 days in Switzerland per year are considered tax residents in Switzerland. The Federal Administrative Court also stipulates that foreigners who are dependent on supplementary benefits are entitled to only three months of residence in Switzerland per year.

References to Swiss cantons and cities

Switzerland is a federal country made up of 26 cantons, each with its own laws and regulations. The cantons of Zurich and Bern, for example, have specific laws and regulations for foreigners who spend more than 183 days in Switzerland per year.

Conclusions

Choosing to live half-time between Switzerland and another country can have important tax and administrative implications. It is important to find out about the rules and regulations that apply to this type of situation and to follow the operational checklist to avoid tax and administrative problems.

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Source: swissinfo.ch