What are the financial advantages of living in Switzerland?
The cost of living is quite high in New York City.  It has the highest CPI (Consumer Price Index) of any city in the U.S.  Salaries also tend to be highest in NYC.  Just about any bicycle lock sold in the U.S. has an exception in its warranty for NYC.  It is the most populous American city. So, why do people deal with all the hassles of living here? Because, it is a hotbed of activity.   I venture that the advantages are basically the same in Zurich: In addition to what George said, there are other things that probably benefit Switzerland: Switzerland was once known for its high regard for private property rights.  Recently it is has started to violate those rights by forcing banks to turn over the names of account holders to the US government.  Not a great trend. Another aspect that makes Switzerland an attractive place for people and businesses is the Swiss governemnt's neutral policy.  The Swiss government is not deploying the Swiss military around the globe to fight terrorism, to spread democracy, to advance its own power, or other such murderous government programs.  The Swiss people do not have to worry about the payback that arrives because of such depraved government programs. The Swiss were traditionally extreme advocates of individual gun rights which allows the people to provide protection for themselves against others and against the government.  This too is changing (read section on The Enemy Within) in a not so favorable direction. I also belive the Swiss Franc was the last major currency to sever its tie to gold.  The currency use to be highly desired due to its tie to gold.  I think the currency is still highly regarded but the Swiss central bank is participating in the currency war and has attempted multiple times in the past couple of years to debase its currency so it does not appreciate against the euro or dollar. Some of the advantages of Switzerland: Not everything is about money. The lake is beautiful. The Swiss people are really good educated The companies want to be a part of these great reputation. We have low taxes We are political stable Our currency is stable We are company-friendly Companies, especially big ones, find in Switzerland a business-friendly environment and often benefit from a special tax regime. Don't mix the companies interests with yours. As per Wikipedia of right now, here are unemployment figures for Switzerland and surrounding countries: Liechtenstein, unfortunately, does not have a large job market, given its total population of about 37,000 people. And note that the German figure of 4.5% is the lowest it has been for decades - I'd expect this number to go up and the Swiss one to stay constant. Bottom line: you will have an easier time finding a job in Switzerland. (Plus all the other good points the other answers raised: great mountains, great chocolate, low taxes, clean streets etc.)
"Personally I would advise only buying what you can afford without borrowing money, even if it means living in a tent. Financially, that is the best move. If you are determined to borrow money to buy a house, the person with income should buy it as sole owner. Split ownership will create a nightmare if any problems develop in the relationship. Split ownership has the advantage that it doubles the tax-free appreciation deduction from $250,000 to $500,000, but in your case my sense is that that is not a sufficient reason to risk dual ownership. Do not charge your ""partner"" rent. That is crazy." "There are countries out there that are known as tax havens, where they offer companies low or no taxes on earned revenue. I haven't looked into this in over a decade, but recall that countries like the Cayman Islands, Switzerland, Ireland, and Nauru, to name a few fit that tag. But like bstpierre stated, there's a reason why the IBM's of the world can pull that off easier then us mere mortals. They have the financial clout to make sure they have accountants that dot every i, cross every t, and close every loophole that would give an ""in"" to the folks at the IRS, CRA, Inland Revenue, or who have you." Wikipedia has a nice definition of financial literacy (emphasis below is mine): [...] refers to an   individual's ability to make informed   judgments and effective decisions   about the use and management of their   money. Raising interest in personal   finance is now a focus of state-run   programs in countries including   Australia, Japan, the United States   and the UK. [...]  As for how you can become financially literate, here are some suggestions: Learn about how basic financial products works: bank accounts, mortgages, credit cards, investment accounts, insurance (home, car, life, disability, medical.) Free printed & online materials should be available from your existing financial service providers to help you with your existing products.  In particular, learn about the fees, interest, or other charges you may incur with these products.  Becoming fee-aware is a step towards financial literacy, since financially literate people compare costs.  Seek out additional information on each type of product from unbiased sources (i.e. sources not trying to sell you something.) Get out of debt and stay out of debt. This may take a while. Focus on your highest-interest loans first. Learn the difference between good debt and bad debt.   Learn about compound interest.  Once you understand compound interest, you'll understand why being in debt is bad for your financial well-being. If you aren't already saving money for retirement, start now.  Investigate whether your employer offers an advantageous matched 401(k) plan (or group RRSP/DC plan for Canadians) or a pension plan.  If your employer offers a good plan, sign up.  If you get to choose your own investments, keep it simple and favor low-cost balanced index funds until you understand the different types of investments.  Read the material provided by the plan sponsor, try online tools provided, and seek out additional information from unbiased sources. If your employer doesn't offer an advantageous retirement plan, open an individual retirement account or IRA (or personal RRSP for Canadians.)  If your employer does offer a plan, you can set one of these up to save even more.  You could start with access to a family of low-cost mutual funds (examples: Vanguard for Americans, or TD eFunds for Canadians) or earn advanced credit by learning about discount brokers and self-directed accounts. Understand how income taxes and other taxes work.  If you have an accountant prepare your taxes, ask questions.  If you prepare your taxes yourself, understand what you're doing and don't file blind.  Seek help if necessary.  There are many good books on how income tax works.  Software packages that help you self-file often have online help worth reading – read it. Learn about life insurance, medical insurance, disability insurance, wills, living wills & powers of attorney, and estate planning.  Death and illness can derail your family's finances.  Learn how these things can help. Seek out and read key books on personal finance topics.  e.g. Your Money Or Your Life, Why Smart People Make Big Money Mistakes, The Four Pillars of Investing, The Random Walk Guide to Investing, and many more. Seek out and read good personal finance blogs.  There's a wealth of information available for free on the Internet, but do check facts and assumptions. Here are some suggested blogs for American readers and some suggested blogs for Canadian readers. Subscribe to a personal finance periodical and read it.  Good ones to start with are Kiplinger's Personal Finance Magazine in the U.S. and MoneySense Magazine in Canada.  The business section in your local newspaper may sometimes have personal finance articles worth reading, too. Shameless plug: Ask more questions on this site. The Personal Finance & Money Stack Exchange is here to help you learn about money & finance, so you can make better financial decisions.  We're all here to learn and help others learn about money. Keep learning! Fuck you.  Fuck the HELL out of you.  First, what if I operate a business that has industry-wise small margins?  All manufacturing, for instance, operates on an average margin of 2%.  How much is that tax increase going to be, again?  5%?  Thanks, I guess you didn't want a manufacturing sector in the US after all.   Second, what if my competitive advantage *is* a small margin?  For many small businesses, that is their *only* competitive advantage in their start-up years.   Third, when the HELL did being left alone and keeping the money I earned by generating wealth and providing services become a motherfucking SUBSIDY? When the hell did the money I earn become the government's by right????    Also fuck you, you disgusting self-important pimple.  The risk-takers, wealth generators and employers of half of America are in fear for their survival; their livelyhoods, their life's work, and their retirement are all at risk from government meddling; and you cavalierly snark that they should just go out of business.    May you live long enough to one day learn how it feels. If you are in the U.S., without credit cards, you probably don't have a credit history. Without a credit history, you won't be able to get a loan/mortgage, and even if you do, you'll get it on very unfavorable terms. Depending on where you live you might even have great difficulty renting an apartment. So, the most important reason to have credit cards is to have a good credit score. People have already listed other advantages of having credit cards, but another thing that wasn't mentioned is fraud protection. Credit cards are better protected against fraud than debit cards. You probably shouldn't use debit cards online unless you must. Also, without a credit card or credit history, some simple and important liberties like renting a car while you are travelling might be denied to you. So, in conclusion, it's bizarre, but in modern America you need credit cards, and you need them bad. Considering the historical political instability of your nation, real property may have higher risk than normal.  In times of political strife, real estate plummets, precisely when the money's needed.  At worst, the property may be seized by the next government. Also, keeping the money within the country is even more risky because bank accounts are normally looted by either the entering gov't or exiting one. The safest long run strategy with the most potential for your family is to get the money out into various stable nations with good history of protecting foreign investors such as Switzerland, the United States, and Hong Kong. Once out, the highest expected return can be expected from internationally diversified equities; however, it should be known that the value will be very variant year to year. Grass is always greener at the other side of the hill.  Tax is only a small proportion of your costs. you could easily set up a small company in a so called tax haven. But are you willing to emigrate? If not, will the gain in less taxes cover the frequent travel costs? Even if you would like to emigrate less tax might be deceiving.  I recently had a discussion with a US based friend. In the US petrol is way cheaper then in Europe. THere were many examples in differences, but when you actually sum up everything, cost of living was kind of the same. So you might gain on tax, but loose on petrol, or child care to just name some examples  For big companies who think globally it makes sense to seek the cheapest tax formula. For them it does not matter where they are located. For us mortals it does. "The main disadvantage is that interest rates are higher for the interest-only loan. It's higher risk to the bank, since the principal outstanding is higher for longer.  According to the New York Times, ""Interest rates are usually an eighth- to a half-percentage point higher than on fully amortized jumbo loans."" They're also tougher to qualify for, and fewer lenders offer them, again due to the risk to the bank. Since you can always put extra towards the principal, strictly speaking, these are the only  downsides. The upside, of course, is that you can make a lower payment each month. The question is what are you doing with this? If this is the only way you can afford the payments, there's a good chance the house is too expensive for you. You're not building equity in the home, and you have the risk of being underwater if the house price goes down. If you're using the money for other things, or you have variable income, it might be a different story. For the former, reinvesting in a business you own might be a reason, if you're cognizant of the risks. For the latter, salespeople on commission, or financial industry types who get most of their income in bonuses, can benefit from the flexibility."