Are the Swiss Abroad a drain or a gain for Switzerland?

Swiss citizens living abroad believe they contribute to the national economy, in particular by setting up businesses abroad that trade with their country of origin. Keystone / Gaetan Bally

How do Swiss nationals living abroad contribute to the good of Switzerland? This is a question that often arises. Those concerned say they ease the burden on public finances and act as unofficial ambassadors for the country. In Switzerland, however, some voices question the legitimacy of the political rights of fellow citizens who live far away and pay no direct taxes.  

More than 838,000 Swiss nationals live outside the country’s borders. They nevertheless retain certain rights, in particular the right to vote. Around 231,000 people are listed in the Register of the Swiss Abroad. As such, they are eligible to take part in referendums and elections in Switzerland.

Yet the Swiss diaspora does not always get good press in Switzerland. Citizens living abroad are regularly labelled as freeloaders who make no contribution to Switzerland “in exchange” for their rights.

Those concerned broadly refute this, as shown by their contributions to our debate on the matter.

A relief for public finances

This is one argument that comes up repeatedly in our discussion forum: expatriates, especially pensioners, say they represent a source of substantial savings for the Swiss state. By living abroad, “many Swiss people receiving the state old-age pension (OASI) relieve the government of having to pay supplementary benefits (SBExternal link) and individual health insurance premium reductions (premium subsidiesExternal link) for the rest of their lives”, argues C.L.D.

By being obliged to forgo these benefits when leaving Switzerland, these retirees directly ease the strain on public finances, they say. One reader comments wryly: “Switzerland should rejoice at each voluntary departure”. Another contributor, R.T., meanwhile suggests “calculating how many millions Switzerland saves by not paying supplementary benefits to Swiss citizens living abroad”.

>> The Council of the Swiss Abroad recently discussed the financial contribution made by Swiss citizens living abroad:

For many expatriates, moving abroad offers a safeguard against financial insecurity. This is the case for Mojer. “In Asia, I can live within my means without weighing on the social welfare system.” Similarly, Navy-Blue-Challhöchi chose to leave after a long, fruitless period of job-hunting. Her aim is to avoid “squandering a lifetime’s savings and ending up on social welfare”.

Several readers also point out that they make voluntary contributions to the OASIExternal link. Anyone who leaves Switzerland to settle in a country outside the EU/EFTA may make voluntary contributions to the state old-age pension scheme and thus participate in the solidarity-based system.

Boost to the national economy

Swiss citizens living abroad also continue to pour funds into the national economy. Thus, JoanBoa, who lives in Luxembourg, points out that pensioners “pay taxes in Switzerland, a tax withheld at source” on their second-pillar pensionExternal link. Property owners also contribute to the country’s economy through their property taxes.

What’s more, many Swiss nationals have set up businesses abroad that involve Switzerland. Another socio-professional group that generates revenue for Switzerland are seconded employees, who pay all their taxes in Switzerland despite not residing there.

When visiting their home country, expatriates also turn into tourists. “I visit Switzerland every two years with my grand-daughters and we spend a lot of money,” says E.B.. Another reader, M.B., echoes this: “I support Swiss culture, transport services, gastronomy and the hospitality industry whenever I visit different parts of our beautiful country or introduce it to foreign friends.” D.-P.M. adds: “I think that helping foreigners get to know Switzerland better is cheaper than the budgets of the tourist offices.”

Commercial and cultural ambassadors

Beyond purely financial considerations, many comments in our debate propose that the diaspora plays a valuable role in promoting Switzerland’s reputation. Many Swiss Abroad see themselves as veritable commercial and cultural bridge-builders.

“Practically every acquaintance or client knows I’m Swiss and therefore trusts our products,” says Emmentaler, who lives in the United States. C.N., meanwhile, describes himself as an “ambassador” whose colleagues, knowing where he comes from, recognise in him “the commitment to reliability and precision that characterises the Swiss”.

The diaspora is also keen to pass on cultural traditions. Thus, V.B. in Vancouver says she is active in the local Swiss club and has taught her children Swiss German. Also in Canada, H.S. helped set up a yodelling club.

“We are bridge-builders for the Swiss in our respective countries,” says K.L.V. “We facilitate business relations, promote Swiss culture abroad and respond to criticism when Switzerland comes under attack.”

This role, however, is increasingly being called into question. While expats in past decades saw themselves as indispensable ambassadors, globalisation and modern technology have reduced their influence. H.S. writes that “people at large have acquired a good knowledge of any part of our globalist planet, which means that the input of the Swiss living here has become irrelevant”.

Two visions of citizenship

The eligibility to vote of Swiss nationals abroad turns out to be the most contentious point in the debate.

Some of our contributors are convinced that political rights should be linked to residence and a direct financial contribution.

Speaking from his experience as a British citizen who lost his voting rights after 15 years living abroad, Lynx Vegas advocates a similar rule for Switzerland. “If you are away for a long time, perhaps never to return, you should not vote in Switzerland.”

Swiss citizens living abroad sometimes acknowledge their own lack of ties to the country. “After 50 years abroad, I no longer feel qualified to vote in Switzerland,” says Gold Coast, who admits that he is out of touch with the reality of his country of birth.

Other members of the diaspora, meanwhile, believe that a Swiss passport confers inalienable rights, regardless of where one lives or pays taxes. Paul thus regrets the purely financial approach taken by some and says that “being able to vote helps keep interest in and ties with Switzerland alive”.

M.B. writes that “our nationality entails both rights AND duties. Like everyone else, I am bound by the obligations of a Swiss citizen; so it seems natural to me to also exercise my civil and political rights”.

No debt to Switzerland

Despite the criticism, most Swiss expatriates reject the idea that they have to justify themselves or that they owe any kind of debt to Switzerland.

“Why should we give anything back? The question should be: what does Switzerland do for us?”, asks Fossi. Meanwhile, D.-P.M. points out that he “paid a lot of tax, set up businesses and employed people” throughout his working life in Switzerland. “Now that I’m retired, I think I have every right to live wherever I want.” Another reader shares this view: “I’ve worked my whole life, paid taxes and other contributions. So I don’t feel bad in any way with regard to Switzerland.”

>> All the contributions to our debate:

Edited by Pauline Turuban. Adapted from French by Julia Bassam/ts