Moving to London from Basel

Overview

London is a global financial hub that attracts top finance professionals from around the world, including those relocating from Basel. The city offers unparalleled career opportunities in investment banking, private equity, hedge funds, and other capital markets roles. However, the move requires careful planning due to the higher cost of living, complex tax implications, and visa requirements. This guide outlines the key considerations for finance professionals making the transition from Basel to London.

Cost of Living Comparison

Housing is the most significant expense, with average rents in central London over 2.5 times higher than in Basel. A 1-bedroom apartment in London's city center costs around £1,800 per month, compared to £700 in Basel. Transportation costs are also higher, with a monthly public transport pass in London at £135 versus £60 in Basel. Groceries, dining out, and other daily expenses tend to be 30-50% more expensive in the UK capital. Overall, the cost of living in London is approximately 60% higher than in Basel, so a significant increase in salary is typically required to maintain the same standard of living.

Tax Implications

The UK has a higher personal income tax rate than Switzerland, with the top marginal rate reaching 45% for income over £150,000. Capital gains are also taxed at up to 20% in the UK, compared to 0-25% in Switzerland, depending on the asset. However, the UK and Switzerland have a double taxation treaty, allowing for the avoidance of paying tax twice on the same income. It is crucial to consult a tax specialist to understand the full implications and plan for optimal tax efficiency when relocating.

Visa & Work Permits

Finance professionals from Switzerland can apply for a Skilled Worker visa to work in the UK. This visa requires a job offer from an approved sponsor employer and a minimum salary of £25,600 per year. The application process takes around 3 months, and applicants must provide documentation such as a valid passport, proof of qualifications, and a criminal record certificate. Alternatively, the Global Talent visa may be an option for exceptional candidates in certain finance roles.

Job Market Insights

London is home to the European headquarters of many global investment banks, private equity firms, and asset managers, including Goldman Sachs, JPMorgan Chase, and BlackRock. Salaries for finance roles in London are generally higher than in Basel, with the potential for significant bonuses. However, the job market is also more competitive, and employers often seek candidates with prior experience in the UK market. Networking and building connections within the London finance community can be crucial for securing new opportunities.

Quality of Life

London offers a vibrant, cosmopolitan lifestyle with a wide range of cultural attractions, dining options, and entertainment. However, the city also has a reputation for long work hours and a fast-paced, high-pressure environment. Work-life balance can be a challenge, especially for those new to the city. Access to high-quality healthcare is generally good, and the city has a thriving expat community. Adapting to the local customs and business culture may require some adjustment for professionals relocating from Basel.

Practical Moving Tips

The best time to relocate is typically in the spring or summer, as the housing market and job market tend to be more active. It is advisable to secure accommodation before the move, as the rental market can be highly competitive. Opening a UK bank account and obtaining a National Insurance number should be among the first priorities upon arrival. A 30-day checklist should include registering with a general practitioner, setting up utilities, and familiarizing oneself with the public transportation system.