Zurich vs Munich (salary/costs perspective only)

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22

Indeed, I’ve heard that I should expect something like 35%-30% due to the deductions.

So if I take the 80k (being optimistic) into account and 30k of childcare in Zurich, and taking into account that cost of life is a bit cheaper in Munich, then we’re not far from 120k. That’s what I meant that maybe it’s a better option for my situation. At least while she’s studying and we have childcare costs. Or do I miss something? Probably I miss the deductions in Zurich which would make a bigger difference. Do you see another flaw in my thoughts?

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And this could also include social deductions, not sure though.

My experience would be that in south Germany, counting all in all including living cost you will be probably on the approx. same level in Germany/Switzerland. Of course what is nice is that with a Swiss salary, holidays abroad become extremely cheap suddenly :smiley:

It changes drastically however when children and childcare come into play. Germany might be a better option then. Also keep in mind, that from a salary >120kCHF/y, the tax burden can change radically between municipalities, even inside a same Kanton.

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It depends a lot on one’s character, but I’d consider that after living for 4 years in a city with your family you might not be so inclined to move abroad and start again from scratch.
And depending on what she’s studying it might be easier for your wife to find a job in Switzerland if she studies here.

I think that even if in the short term Munich is close, in the long term Zurich becomes a no-brainer. The higher income (once you start earning 2 Swiss salaries) should easily compensate for the relatively short-term childcare costs.

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By Zurich do you mean the city or just the region? Rent is expensive in the city. If she’ll study in Winterthur, you could just move to Winterthur which is cheaper, or Dübendorf/Stettbach from where it’s very fast to get to Winterthur/Zurich. Or Uster, because it’s fantastic :smiley:

If I were in your place I’d probably move to Dübendorf near the Stettbach train station, reasonable rent and near to where the jobs are. And also easy to get to Winterthur.

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I meant the canton. For sure I would not live in the city. Probably somewhere near by Winterthur. I’ll check the palces you mentioned! Thanks a lot.

Thanks a lot for the input guys. Apparently everyone is more in favour of Zurich rather than Munich because of the higher income. I’ll apply in both places and see what I get :slight_smile: Maybe Zurich is indeed the best choice.

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Important : in Canton ZH the public transport is really expensive. Find some flat at biking distance. For information, Winterthur-Zurich yearly public transport ticket is more than 2000 CHF/a

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Just looking at the hidden income side (additional 10% pension pillar 2 income was mentioned for CH), I would vote for Switzerland. Germany has a sub-par system of pay-as-you-go, while in Switzerland the pillar 2 money is in your name, in addition to any pillar 1 membership years you can earn (you’ll need 44 years at CHF 85’000 on average to get the maximum pillar 1 pension of CHF 28’680).

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@victorvsc Exactly this city pair is where I live/lived, so maybe i can help you.

When it comes to childcare i do not have information, please listen to the other posters in the forum and do your own due diligence.

Paperwork for swiss immigration department and the language problem might be a bit harder for you, but when it comes to everything else —> Zurich. Do not go to Munich!

Yes Munich is lively and one can live a good life there… just not a mustachian one.
Germany (esp. the cities) is so bad for monetary goals most other europeans cannot believe it, when I tell them about it.
In my/my wife’s personal situation a 7-year-stint in Switzerland equals savings about the same as 20 years of work-life in Munich.

Calculation (single man, no family)
Salary as a youngish engineer in a big international corporation: 70.000k € (which is considered high in almost all social circles) equals to maximum 3,200 € monthly as a single dude (tax class 1).
In Munich a small two room apartment in the not so nice parts (North and East) is 1.000€.
Lets say 1000€ for the rest, eating, spare time and so on is feasible but already on the frugal side.
That leaves you with 1000€. If you have to drive because your job is on the other side of the city, then god bless your soul, that leaves you with 600-700€ savings a month.
Accounting for one-off situations (teeth need fixing, the fridge stops working, minor car problems, etc.) —> you are almost at zero.

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30

I don’t think it’s so bad overall. Germany is relatively inexpensive for food and many consumer products and at least used to have relatively low rental prices. Though notably not Munich, which is universally regarded as the most expensive metropolitan rental market in Germany. By far.

And you don’t compensated in low taxes for the high rental prices, such as in the prices.

It might be good to look at the absolute numbers as well. Because…

I fully agree on this.

I can definitely see why one might prefer prefer Munich to Zurich for quality of life, flair and atmosphere. I wouldn’t be surprised if, living in the suburbs, a house with a garden and two or three kids is more financially attainable on a good salary in Munich.

For savings though, I wouldn’t look at the relative numbers but also at the absolute numbers. Especially if you can see yourself retiring early somewhere else (than Munich or Zurich).

Again: higher overall salaries, lower taxes - and then trying to keep costs low should probably be a no-brainer for Switzerland. Unless you’re burdened by more than one child and a wife who doesn’t intend to work.

Which…

…you kind of are, aren’t you?

Regarding child care, I wouldn’t be surprised if Munich was much less expensive though. See here for here (for students) example.

Probably 3000 CHF or less a year.