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LIVING IN SWITZERLAND

What happened to the Swiss village that offered cash for people to move there?

The hamlet of Albinen in Switzerland made international news in 2017 when it offered to pay tens of thousands of francs to individuals and families who settled in the Valais village. What's happened since then?

What happened to the Swiss village that offered cash for people to move there?
Swiss cow bells are on display, with Albinen in the background. Photo by Fabrice COFFRINI / AFP)

Though scenically located in the Swiss Alps, by 2016 Albinen saw its population dwindle to 248 mostly elderly residents, to the point that a village school had to close.

In a bid to attract ‘fresh blood’ to its shores, Albinen residents voted to earmark 100,000 francs per year from the council’s coffers to “bring life back to the village,” as the then-Mayor, Beat Jost, said.

Specifically, the proposal, which was unanimously accepted, called for 70,000 francs to be paid out — 25,000 francs to each adult and 10,000 per child — to eligible families to live in the community.

With this monetary incentive, the village hoped to entice 10 families in the next few years.

But some strict conditions were set.

A view of Albinen.

A view of Albinen. Photo: Wikimedia Commons

What were the conditions – and who moved there?

To be eligible, candidates had to be either Swiss citizens or permit C holders, be under 45 years of age, and agree to live in the village for at least 10 years.

They also had to commit to buy or build a house for at least 200,000 francs, and use it as a permanent home, not a second residence.

Following the offer, which made rounds of the social media, Jost was swamped with 12,000 queries from all over the world.

“There were people who arrived with their suitcases and asked where the money and the apartments were. It was crazy,” Mayor Jost said in a 2021 Swiss news report

Since the scheme was launched, the village council has accepted 38 people, including 11 children. By the end of 2019, four babies were born to the newcomers — “a new 20-year-record,” Jost said.

READ MORE: Albinen: first family approved for cash-for-settlement deal

The new families moved to Albinen from within Valais and from other parts of Switzerland as well.

To date, the village has approved incentive payments totalling 880,000 francs, sparking 6.6 million francs of investment in the process. 

In 2019, as it was experiencing its much-awaited ‘revival’ (in terms of population growth), Albinen was selected as ‘the most beautiful village in Switzerland’ by Schweizer Illustrierte magazine.

In the meantime, Albinen has morphed from a dying community to a “bustling village in the Valais Alps,” as it calls itself on its website.

And interest in the village continues – applications can still be submitted by those who qualify and want a spot in this stunning village. 

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For members

MONEY

Do adult children in Switzerland have to support their parents financially?

Usually, it is the parents’ responsibility to ensure their kids are well taken care of financially. But can Swiss authorities force the children to return the favour in times of need?

Do adult children in Switzerland have to support their parents financially?

In most cases, once children are grown up and out of the house, they are (or at least should be) self-sufficient in terms of finances.

Parents too should breathe a sigh of relief that they are no longer obligated to pay for their children’s expenses, except perhaps for giving them some money here and there as a gift.

This is what happens in the best-case scenario.

But what if things don’t go according to this plan — for instance, if the parents find themselves in financial straits and can’t  afford to pay their bills?

Family obligations

Generally speaking, the truly needy people who don’t have enough income to pay for their basic living expenses will receive financial help from the government, in the very least in the form of the health insurance and housing subsidy.

READ ALSO: Can I get financial help in Switzerland if I’m struggling to pay the bills?

However, before doling out public money, authorities will see whether relatives should be made to help the struggling individuals pay their bills.

(In this context, ‘relatives’ means only those in the direct line of descent: grandparents, parents, and children.)

They will do it by checking the tax status of these relatives — how much they earn and what other financial assets they have — to determine whether, and how much, they should be paying toward their parents’ expenses.

Obviously, you will be expected to pay up only if your own financial situation allows it; you will not be forced to part with your money if you have very little of it yourself.

 ‘Favourable financial circumstaces’

Based on a Federal Court ruling, if the adult child  lives in ‘favourable financial circumstances’ they are required to help out their struggling parents.

The Court defined ‘favourable financial circumstances’ as income and assets allowing a comfortable life.

‘Comfortable life’, in turn, was defined by the Swiss Conference for Social Welfare (SKOS), as a taxable annual income of 120,000 francs for a single person, and 180,000 francs for married couples.

“If you have minors in your household, the limit is increased by 20,000 francs per child,” according to AXA insurance.

It goes on to say that you can deduct an exempt amount from your taxable assets.

“Your annual depletion of assets is deducted from the remaining amount. This means that if you are obligated to provide financial support, you are permitted to use part of your assets yourself each year; you don’t have to devote your entire assets to providing support.”

At between 18 and 30 years of age, this is 1/60th per year; from 31 to 40, 1/50th per year; 41 to 50, 1/40th per year; 51 to 60, 1/30th per year; and from the age of 61,1/20th per year. 

Are there any exemptions to these rules?

Aside from not having sufficient funds, you could be exempted from paying if, say, your parents, or parent, have not lived up to their own financial obligations toward you.

In Switzerland, parents are required to  provide financially for their children until the age of majority, and even beyond that if they are still studying or undergoing vocational training — typically, until the mid-20s.

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