Written by David Rosbotham DipPFS | Financial Planner

If you’ve lived in Switzerland for more than a couple of years, you already know how expensive the Swiss rental market can feel, especially compared to what your money can buy elsewhere.

And this is where many expats fall into a familiar trap because they start asking themselves:
‘Should I buy a property in Switzerland?’

Below is a true-to-life scenario we often see in our financial planning work with international families. It illustrates how easy it is to make a big financial commitment…and how quickly things can unravel when life changes unexpectedly. In this blog we will highlight the risks, the blind spots, and the long-term consequences that many expats overlook when buying a home in Switzerland.

The Scenario: Everything Looks Perfect… Until It Doesn’t

Let’s imagine you’ve been in Switzerland for 8 years.

Your financial situation looks strong:

• Age: 51
• Family: 3 children under 18
• Income: CHF 500,000 per year
• Cash savings: CHF 600,000
• UK pension: £400,000
• UK property: £500,000 (mortgage £300,000, rent covers repayments)

You casually mention to your Swiss bank manager that renting feels expensive and you’ve seen your dream home.

He encourages you to buy, because on paper, you look excellent: stable job, strong income, long tenure in Switzerland, significant assets. 

Your bank approves a CHF 1.8 million mortgage.
You sign. You buy the dream home.

How You Funded The Swiss Property Purchase

• You withdrew CHF 150,000 from your Swiss 2nd pillar pension as part of the deposit
• You used CHF 450,000 of your savings
• You spent CHF 100,000 on renovations, garden work and furniture
• You kept CHF 50,000 as an emergency fund

On the surface, this is looks reasonable. 

But then life changes.

12 months later, your employer announces a restructure.

You’re made redundant at age 52. 

Suddenly the dream home looks less like an achievement and more like a potential liability.

This is the exact moment when many expats realise they may have taken on more risk than expected, especially when buying Swiss property late in their careers.

And this is exactly the point when many expats seek help, asking the question ‘what do I do?’

Unfortunately, there is little to be done once the commitment has been made. The question we can answer is ‘what should you have done?’ and more importantly: ‘How could this situation have been avoided?’.  

When a client comes to me before buying a home in Switzerland, these are the questions we ask and the red flags we highlight to avoid this very scenario.

Identifying The Risks For Expats Buying Swiss Property 

a) Expats in their 50s are statistically more vulnerable to redundancy

Data shows expat roles are often more exposed in cost-cutting cycles.

b) ‘I’ll work until 65’ is a hope – not a guarantee

Few expats in Switzerland remain employed on high-paying local packages into their mid-60s.

c) The accountability mirror

Look around: How many expat colleagues over 60 do you actually see?
It’s a hard, but essential reality check.

d) One-income households face higher vulnerability 

Losing the sole income is financially brutal when carrying a large mortgage.

e) Your UK pension is locked until age 57

You cannot access it to support mortgage costs if redundancy happens earlier.

f) Your UK property is illiquid

Selling can take months, sometimes longer.
Tenancy laws can delay access to the property.

g) Do you know your responsibilities as a UK landlord?

Notice periods and tenant protections may prevent a quick sale.

h) Buying ‘too much house’ can damage long-term finances

Clients who overstretch, often face the need to sell large assets in the short-term AND, as a result, you either delay retirement or have your lifestyle reduced due to less income.

i) Cashflow planning is essential

We model multiple ‘what if’ and worst-case scenarios: redundancy, relocation, early retirement, rate increases.

Affordability in Switzerland: The Part Banks Don’t Warn You About

a) Swiss unemployment (Chômage / RAV)

You may be covered for ~24 months if eligibility criteria are met.

b) But…benefits are capped

Maximum is roughly CHF 10,000 per month, a huge drop from CHF 500k annual income.

c) That creates a massive shortfall

You need savings or income from elsewhere to bridge the gap.
Does your CHF 50k emergency fund cover that? No.

You cant access international pensions early.

d) Can you rent out your Swiss home if you receive a job offer abroad?

Not all properties can be rented freely (permit criteria applies), and rental income might not cover mortgage + maintenance + taxes.