Switzerland Today

Dear Swiss Abroad,  

Have you moved abroad for economic reasons? Did you worry that you couldn’t make ends meet with your pension in Switzerland? Many who relocated to Thailand were driven by these concerns, but the Asian country might no longer be as appealing as it once was. 

In today’s briefing, we’ll cover the Thai tax reform and take a closer look at home, where the Swiss government has admitted to an error in the calculations for a crucial insurance vote. Will this shake your confidence in Swiss institutions? 

But first, a look at the headlines making news today.

Participants dance during the 30th Street Parade in Zurich’s city centre in 2023. Keystone / Severin Bigler

In the news: Zurich Street Parade goes eco-friendly, Mozambique ex-minister sentenced in Credit Suisse “tuna bonds” scandal and Switzerland’s new nationwide drone network featuring Nokia. 

• Nearly a million techno music fans are expected in Zurich on Saturday for the 31st Street Parade. This year’s theme is “Prefer: Tolerance”. Over 200 DJs will be joining the festivities, and the Street Parade is making an effort to be more environmentally friendly: all waste will be sorted and recycled, and flyers are prohibited. 

• Mozambique’s former finance minister, Manuel Chang, has been sentenced by a US court for his role in the “tuna bonds” fraud scandal. He is accused of embezzling large sums from the billion-euro loan arranged by Credit Suisse. 

• Telecoms company Swisscom is set to bolster a nationwide network of drones, primarily for automated surveillance flights. It will enlist the help of Finland’s Nokia, which has already implemented a similar system in Belgium. 

The tax reform particularly affects retired foreign nationals, who previously paid no tax. Getty Images/Royalty-free

Swiss expats in Thailand: from paradise to tax nightmare?  

By the end of 2023, it was estimated that over 10,000 Swiss nationals were living in Thailand. With its sandy beaches, vibrant local communities and favourable tax system, Thailand is home to the largest Swiss expat community in Asia. 

However, according to an article published by Swiss newspaper BlickExternal link today, the country may not be as appealing as it once was following the tax reform introduced at the start of the year. 

So far, pension income in Thailand has been tax-free, which has made the country a magnet for Swiss retirees for many years. However, this could soon be a thing of the past. Thailand wants to join the Organisation for Economic Co-operation and Development (OECD), and the latter is pushing Thailand to regulate its tax system. 

Some Swiss expats in Thailand are taking it in their stride. Others – especially those with modest incomes – aren’t sticking around and are moving on to greener (or cheaper) pastures. 

Daniele Bruni, a 54-year-old Swiss expat interviewed by Blick, said the new tax regulations would have eaten up a quarter of his income. Will this lead to an exodus of Swiss expats from Thailand to other countries in the region? 

We’ll have to wait and see, as tax regulations in the region aren’t much better. But if you’re a Swiss expat in Thailand, here’s a rundown of what the tax reform means for you. 

The booklet helps citizens take informed decisions for issues at stake in nationwide votes Christian Flierl

Swiss federal office issues mea culpa over incorrect calculations in voting booklets

The Federal Social Insurance Office has for the first time confirmed to Swiss public television SRFExternal link that the figures in the booklets on the old-age and survivor insurance (OASI – known as AHV/AVS) vote were based on incorrect calculations. 

The errors in calculating the projected OASI expenditure were due to the use of two incorrect formulas since April 2019, leading to an overestimation of the costs. Complaints about the September 2022 vote can be filed until this evening. 

The Swiss government has made at least three mistakes in calculations on issues important to voters over the past decade. What will this mean for public trust in the Swiss government? My colleague Jessica Davis Plüss explores this in her article.