Should I Remain a Legal Resident in Switzerland While Living Abroad

Hi there,

I have read through a few of your articles and I would like to ask for some specific advice.

To keep it short, I am engaged in missionary and humanitarian work in Peru and I am busy setting up an association in that country. My family of 2 adults and 3 children plan on moving to Peru for an as-yet-undetermined length of time, after which we will return to Switzerland. My conclusion is that it would be better for my family if we retain our residence in Switzerland (have double residence in Switzerland and Peru) in order to keep our Swiss insurance coverage and continue to receive child benefits, among other reasons.

I would like to ask for your advice on health and accident insurance in this regard. We expect to leave in around 3 weeks. Would it be possible to arrange a meeting to discuss this?

I look forward to your reply.

Best regards

Hi there,

There are a number of import factors to consider:

1. Swiss compulsory health insurance only covers emergencies abroad

Firstly, it is important to understand that outside of Switzerland, compulsory Swiss health insurance only covers medical emergencies. Regular checkups and medical treatments which would normally be covered in Switzerland are not covered outside of the country. If you receive medical treatment which does not qualify as an emergency while staying in Peru, the insurance may not cover the costs. You can find more information in the moneyland.ch guide to compulsory health insurance coverage for treatment abroad.

It is worth noting that typically, supplementary health insurance policies which provide travel health insurance also only cover medical emergencies, and normally only for a limited period of several weeks.

International health insurance, which is offered by several Swiss insurance companies, is a better choice for long-term stays outside of Switzerland. This insurance provides coverage similar to that offered by compulsory health insurance while living in another country - for most medical expenses, not just emergencies. The moneyland.ch guide to international insurance provides information on some of the policies available.

Just note that international health insurance is fully-private insurance, and insurance companies are not obligated to take you on if they feel you pose to high a risk. It is a good idea to wait until you accepted by an international health insurance provider before you terminate your compulsory health insurance.

Important: If you choose to maintain residence in Switzerland for other reasons, you will be legally obligated to keep your compulsory health insurance coverage.

2. Putting insurance on hold

If you expect to return to Switzerland in the not-too-distant future, it may be a good idea to put your supplementary health insurance policies on hold rather than cancelling them. Some Swiss insurance providers provide this option. You can reactivate the policy when you return to Switzerland, at which point the term picks up where it left off.

Putting your policies on hold and reactivating them when you return to Switzerland helps you avoid paying premiums unnecessarily while you are away, while still keeping your valuable supplementary insurance coverage.

3. Accident insurance

Another important factor is that, if you are not employed by a Swiss employer, you will not be covered by occupational accident insurance. If you keep your compulsory health insurance coverage (by maintaining residence in Switzerland, for example) rather than getting international health insurance (which typically includes accident insurance), you should add accident insurance coverage to your compulsory health insurance policy when you leave your Swiss employer to benefit from accident insurance while abroad.

4. Other points to consider

There are situations when maintaining residence in Switzerland during relatively short-term stays abroad can be beneficial. However, you should consider whether the advantages outweigh the disadvantages.

If you maintain your residence in Switzerland, you will be liable to complete Swiss tax returns and possibly pay tax in Switzerland. If attending public school is compulsory in your canton of residence, you may have to get special permission from school authorities in order for the children to remain registered without attenting school. You will have to continue paying premiums for Swiss compulsory health insurance, which may be more expensive than those you would pay for international health insurance (particularly if you are not eligible to receive premium reductions).

Consider taking the time to carefully weigh the pros and cons of maintaining residence before making a final decision.

Best regards from Moneyguru

More on this topic:
Getting Medical Treatment Outside of Switzerland: What Does Swiss Health Insurance Cover?
Swiss International Health Insurance: How to Get Insured No Matter Where You Live
Swiss Health Insurance: Protection While Traveling Abroad
Health Insurance For Swiss Living Abroad
Swiss Bank Fees For Non-Resident Customers
Leaving Switzerland? 7 Important Financial Questions Answered
Forum: Moving away from Switzerland without losing social security benefits
Forum: Swiss child benefits parent working in Switzerland with children outside of Switzerland