Why is cost of living so high in Switzerland?

Have you also seen the Swiss wages? They are also high too. It's probably one of the few places in the world right now where you can comfortable support a young family with a typical single income.

How about comparing cities using Expatistan instead, where http://www.expatistan.com/cost-of-living/comparison/new-york-city/zurich. The eye-watering high prices in Switzerland can mainly explained with the exchange rate. Ever since the GFC, the exchange rate of the Swiss Franc skyrocketed. Whereas in 2008 1$=1.1 CHF, it's now 1$=0.9 (-20%), in 2008 1€ = 1.6, now 1.2 (-25%), which means that for people coming from the USD currency system prices are 25% and from the EUR 33% more expensive. With this we can mainly explain high rents and wages, because no employee or landlord will lower their wage or rent by 25% just because the exchange rate has changed. So everything which is tied to rents and wages may appear expensive, like riding a taxi, going to a restaurant/bar, hotel etc. -> BigMac-Index In addition Switzerland is a country of capitalist commun(itar)ism, which means that we also pay the lowest skilled workers well. The recommended minimum wage is 19 CHF / h (21 USD / 16 EUR). Whereas this is good for Swiss Society as a whole (no working poor), it probably explains best the eye-watering prices for tourists who mainly consume the services of traditionally low-skilled labour, like in bars, restaurants, hotels, taxis, etc. On the other hand, everything which is tied to imported goods is pretty much the same price as elsewhere in the world, and chances are that you may get an iPad (that's why we invented the -> iPad-Index) much cheaper than anywhere else, because of the extremely low sales tax and superior logistics. More generally speaking whenever a good involves superior logistics, they will probably be cheaper in Switzerland than in the low-wage neighbouring countries, like electronics, auction & outlet store items, etc. This is why I always say to others it's not that prices are high in Switzerland it's the other way around - With a Swiss wage, the rest of the world is on sale!!! ;-)

The simplest answer is because wages are commiserate with the cost of living. Paying employees a livable wage means that the costs of goods must reflect that expense. The check-out lady at my local grocery store earns enough money to save up for a trip to Thailand every year and stays there for 10-14 days each time. Tram and bus drivers here make a wage that is higher than most starting engineers in the States, and certainly more than most public school teachers there as well. This in turn means that people have not only enough money to pay their bills, invest in their pensions, and feed and clothe their kids, but also enough to then pump money back into the economy by making spontaneous and planned  purchases in the market place. Simple, really. Unfortunately, devotees of the Chicago School of Economics (i.e. the guys responsible for the current economic crisis) seem to think there are invisible hands that manage the markets (there are actually and they are called avarice and greed) and that if you concentrate the wealth into a small percentage of the population, deregulate industries and let the masters of business do their magic, all will be peachy. So far, that has not worked out so well, has it?

I lived in Berlin prior to moving to Basel and have found Switzerland to be much more affordable. Consumer prices are much cheaper in Berlin but salary tends to be low and taxes are high. Visiting Switzerland can be eye wateringly expensive, but living here is reasonable because salaries are higher.

I have lived in Switzerland for 10 yrs...in a canton (Zug) renowned for low taxes and a high COL (even in Switzerland). To answer your question succinctly, Switzerland is "expensive" because it is a conservative economic system.  Stakeholders rule over shareholders here. However, the common "Switzerland is expensive" rant is entirely driven by one's living situation. Allow me to list the top 5 situation "profiles"...in order of outstanding to "not so outstanding" value. Student. Switzerland's top universities are the best value on the planet.  Imagine an engineering school with a Stanford faculty, MIT budget (1.62B) and 21 Nobel Laureates...but tuition is 2K CHF a year!  Compared to 35K CHF per year (or more) in US top engineering schools. With no offense to the poster with 3 months Swiss experience, excellent public transportation and wholesome food are just perks to the incredible education value. Expat (non US). Two words:low(er) taxes. On income AND assets.  While the situation has changed dramatically over the past 5 years, it is still quite favorable to be a white collar expat, particularly if one lives in France (low COL) and works in Geneva\Lausanne or Basel (high wages). Local. Being a Swiss citizen means having full access to a very healthy social system and never a real concern regarding the availability of gainful employment.  The downside (depending on locale) is sharing your beautiful country with a bunch of overly paid and under taxed foreigners. Tourist. Outside of Singapore, one could not find a more organized country to visit.  Touring Switzerland is the equivalent of camping in a Winnebago...very few discomforts.  Although crime does occur, you are more likely to get mugged at Disney World. It should not surprise any tourist then that the giant protective cocoon has a relatively hefty entry fee for visitors. Expat (US). Unless you are sponsored by a multinational, high margin company...enjoying the high quality of life in Switzerland requires a significant financial commitment for Americans. US citizens pay the same income tax regardless of residency.  In addition, Americans enjoy the opportunity to learn (via well paid accountants) about Swiss tax code (which is quite easy actually), as both US and Swiss returns must be filed regularly.  As part of those returns Americans will now be required to disclose all shareholdings in any foreign firm or expose the firm to possible stiff penalties.  To add to the grimace factor, most Swiss banks, for entirely great reasons (again FATCA), will balk at an American opening a checking account. Unfortunately, this makes Switzerland incredibly "expensive" for American entrepreneurs and/or angel investors. Two final points while I am at my first Quora rant. Yes, public transportation is absolutely stellar. However, if you own young children and have a super busy schedule, you need a car...unless your idea of weekend fun is planning how to transport yourself and various household items. In Bay Area vehicle parlance, a new BMW X5 grocery getter will set you back approx 135K+ USD. Diesel is 8-10 USD per gallon. Insurance is 3K USD per year. Legally required to have both winter and summer tires with good tread. Figure another 2500 USD per set. The good news is most of the driving is done within a 50 mile radius and a 101-style traffic snarl is very rare. Most consumer products in Europe suck. Flimsy plasticky expensive shit prevails.  Sorry to say, but in my experience the nice notion of high quality Swiss/German consumer goods is outdated.  The only positive is you are offered a warranty on nearly everything, which My favorite example is the appliance manufacturer, V-Zug, located in my canton of Zug.  In addition to the factory occupying some of the most expensive real estate in the world (imagine Whirlpool making dryers in Beverly Hills), the appliances are appalling in quality and feature set. A dorm room size frig, with manual freezer defrost, no ice or water and a propensity to not close properly will set you back at least 2K USD.  Due to local building customs, we have V-Zug appliances in both our home and the apartment that we rent out.  Every single appliance has been replaced at least once. Of course, one can still find an incredible level of precision engineering outside or in the top end of the consumer space. So apologies for being long winded, pedantic and likely sounding grossly whiny...but thats my take on "why the cost of living is so high" here in lovely Switzerland!

key words in some form of logical sequence: geopolitics (local, cantonal, international) neutrality, banking other nations' secrecy nationalism, bureaucracy boasting democracy (more paperwork*) 3.1 official languages (more paperwork*) density, real estate conservatism, xenophobia (=dear only to foreigners and tourists) higher income (form of bribery: "you can't complain") social welfare  (more paperwork*) taxation, mandatory health insurance ("that's just how it goes") Though taxes are relatively low, you do also have mandatory separate ones like TV–radio–Internet tax from an organisation that calls itself BILL-ag, only people generally ignore the hyphenation.* "paperwork" includes manpower to digitise paperwork. All adds up to fewer trees being cut, while "high-tech" pollution may be allowed to increase.