If you are a new arrival in Switzerland, or are about to move here, you may be uncertain about what portion of your income will be eaten up by rent.
You may already know that rents in Switzerland – and particularly in urban areas – are high, and in cities like Zurich and Geneva they are – no pun intended – through the roof.
If you are wondering what percentage of your salary should be set aside for your rental housing this year, this is what experts recommend (and many landllords require).
About a third of your income
The general rule that has been in place for many years is that 30 percent of your gross salary should be going toward rent.
As an example, if you earn the median Swiss wage of 7,024 francs per month, just over 2,100 francs of it will typically be used to pay rent.
When you submit your application for a rental property, you have to include the salary certificate from your employer.
This way, your landlord or the property’s management company see that your wages are sufficient to cover rent – the assessment being based on this 30-percent rule.
In other words, they will make sure that you earn enough to cover rent and have enough money (70 percent) left over for your other expenses – read more about this below.
If, on the other hand, your income is low and rent would eat up more than a third, it is unlikely that you will be accepted, unless you can prove you have lots of money in the bank from which to pay your expenses.
However, even if your salary is high enough to cover the 30-percent, this does not necessarily mean you will get the apartment.
If there are other candidates, whose salaries are higher than yours, they will likely be the ones to sign the contract.
More nuances
The ’30-percent’ is a general rule, but in certain situations it could be more or less.
For instance, in markets where the demand for housing is high but the supply of available rental accommodation is low – like the aforementioned Zurich and Geneva – the rent-to-income ratio may exceed the 30-percent threshold.
On the other hand, the farther away from major cities and tourist areas you are willing to move, the higher the likelihood that your rent will take up less than 30 percent of your income.
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What is the situation in 2026?
It’s true that the cost of living is going up from one year to the next.
However, the 30-percent rule remains the same regardless.
While the actual money amount may change depending on whether your wages and rent went up, the proportion of income that goes toward rent is still the same.
What percentage of your income will you pay for other fixed expenses?
According to Swiss government, “compulsory charges such as taxes and health insurance premiums account for around 30 percent of gross income, while fees and insurance comprise a further 20 percent.”
Further, “in terms of consumer spending, housing and energy take the lion’s share, followed by transport, and then food and non-alcoholic drinks. After all expenses are accounted for, Swiss households can on average save 1,700 francs per month.”
This is, of course, just an estimate. Common sense dictates that those in a higher-income bracket may save more, and low-earners, less.
