Is Singapore Really More Expensive Than Zurich? Unpacking the Cost of Living

As of my last update, both Singapore and Zurich are known for their high cost of living, but the comparison can vary depending on specific factors such as housing, transportation, food, and entertainment.

Understanding the Cost of Living: Zurich and Singapore

Generally, Zurich often ranks as one of the most expensive cities in the world, particularly in terms of housing and everyday expenses. Singapore, while also expensive, tends to have lower costs in certain areas like food and transportation, but high prices in housing and education. Different cost of living indices like those from Numbeo, Mercer, or the Economist Intelligence Unit may rank these cities differently based on the criteria they use. It's advisable to check the latest rankings and indices for the most current and comprehensive comparison.

The Latest Data on Cost of Living: Singapore vs. Switzerland

The average cost of living in Singapore (3,280 USD) is slightly higher than in Switzerland (approximately 2,604 USD). Singapore is ranked 2nd, while Switzerland is 4th in the list of the most expensive countries in the world.

Living in Both Cities: Personal Experience and Observations

I've lived in both cities and have family in both. Based on my personal experience and observations, Switzerland generally remains the more expensive city. Here's why:

Comparing the Tax Models

Singapore: Singapore operates on a consumption tax model. There are moderate progressive tax rates, but the highest tax bracket is very low by international standards, and there is no capital gains or inheritance tax. Singapore makes up for this by making consumption taxes very high on certain items like cars—which, along with fabulous transportation services, makes cars unnecessary and taxis remain cheap by international standards. Real estate has a moderate tax level, both at the purchase and personal residence level, but due to the high valuation of Singapore property, the government makes a significant amount of money on real estate transfers. It offsets this with probably the world's finest public housing, effectively offering first-time home buyers subsidized accommodation and home ownership. Singapore also operates a hybrid public-private healthcare system where healthcare is subsidized at the public level with mandatory Medicare savings.

Zurich: Zurich follows a progressive tax model, with high tax rates that creep in quickly even at lower income levels. To ensure income equality and wealth distribution, the government has minimum wage levels that are very high by international standards. These employer costs get passed on to consumers, making things in general expensive, like dining out. Switzerland also has a robust public transportation network that includes trains, air, road, and ferries. However, distances are longer than in Singapore, so ticket prices tend to be more expensive per kilometer travelled. Personal cars are significantly cheaper than in Singapore, although taxis are significantly more expensive.

Comparison in Other Cost Factors

Food: In Singapore, food is plentiful, cheap, and affordable, especially if one chooses to eat at regular outlets. The dining experience tends to be more affordable compared to Zurich. On the other hand, food in Switzerland is very expensive, with most people choosing to eat at home as much as possible and considering a meal out as a special treat.

Housing: Housing is expensive in all major cities and most popular residential areas in Switzerland, and there is little subsidized housing. Switzerland has one of the world's lowest home ownership rates at 36%, with most people renting due to the high cost of ownership. In Singapore, while housing is also expensive, there is a strong public housing system, and first-time home buyers can get subsidized accommodation and home ownership.

Healthcare: Healthcare in Switzerland is not subsidized and is generally more expensive. There is mandatory healthcare insurance which can be more expensive than similar systems in other parts of Europe. In Singapore, healthcare is subsidized, with the public healthcare system being accessible and affordable.

Conclusion

Overall, Switzerland remains the more expensive city compared to Singapore. While both cities have their unique advantages, the tax and cost structures in Switzerland end up driving overall expenses higher.

Key Takeaways

Singapore: Lower costs in food and transportation, higher costs in housing and education. Zurich: Higher costs across the board, especially in housing, food, and healthcare.

For expatriates and individuals considering moving to either city, it's important to understand the specific cost factors that will impact your budget. Both cities have their unique strengths, and the best choice depends on personal preferences and financial considerations.