Cost of Living in Zurich vs London: Which City Is Actually Cheaper?

Zurich and London are frequently cited as two of the world's most expensive cities. But when you factor in salaries, tax systems, and purchasing power, the picture is more nuanced than the headline cost figures suggest.

Rent

Zurich: A one-bed apartment in the city centre costs CHF 2,200–3,200/month (€2,300–3,400). London: Central London one-beds run £2,000–2,800/month (€2,350–3,300). Broadly similar.

Income Tax

This is where Zurich wins significantly. Swiss income tax (cantonal + federal) for a single worker earning CHF 120,000 is roughly 25–28% all-in. A London worker on the equivalent £110,000 pays approximately 42–45% in income tax and National Insurance. The difference can amount to £10,000–£15,000 per year in favour of Zurich.

Daily Costs

Food and transport are more expensive in Zurich — a coffee costs CHF 5–6 vs £3–4 in London. Eating out regularly in Zurich is significantly pricier. However, Swiss wages tend to offset this.

Verdict

For high earners in tech or finance, Zurich offers meaningfully better net savings. For mid-income workers, London's greater variety of affordable housing zones and lower food costs make it comparable or even better value.