Given a choice, would you rather move to Switzerland or Singapore?
Despite the hype, the flow of financial professionals from the UK to Switzerland (in particular) and Singapore is more like a trickle than a flood. Nonetheless, if you're considering a move, which is the best option?
In the opinion of French newspaper L'Express - which assessed each country's desirability based on corporate tax, income tax, regulation, growth prospects and quality of life - Switzerland has it by a whisker.
Why your employer might move
Its conclusion is, though, that both London and New York will lose out. Switzerland's 26 Canton's compete for corporate tax rates of between 12.5-24.5%, while it's 17% in Singapore. Both look good against the UK's 28% and the 40% rate in the US.
Similarly, while the regulators are cracking down on the financial sector both state-side and in the UK, the Swiss and Singaporean authorities are "relatively more permissive", according to Marc Touati, director of economic research at Assya Finance Company.
Still, there are signs that Switzerland is becoming more stringent on its rules governing hedge funds, which are among the only firms to relocate in significant numbers, and doubts have already been cast on whether Asian financial centres ability to support larger banks redomiciling.
Why you might like to move (or not)
The key points L'Express makes are around quality of life and income tax, with the latter substantially lower in both Switzerland and Singapore. This comes in at 0-20% in Singapore (the top rate kicking in if you earn more than S$320k) and a maximum of 11.7% in Switzerland.
But you may also find yourself relatively poorer.
For all the talk of spiraling salaries in Asia, it would be wrong to assume the streets are paved with gold. Much of this pay inflation is for private bankers, who are usually already on the ground and can bring a book of business with them.
Within investment banking, manager/AVP roles in Singapore pay S$250-300k (123-148k), according to the Robert Walters salary survey, which rise to S$300-430k (148-212k) at director level. This is a rise of $$50k year-on-year, but could as easily be put down to regulatory pressure on bonuses driving up base salaries as competition pushing up pay.
What's more 45% of expats working in Singapore earn over $200k (123k), according to the HSBC Expat Explorer Survey.
Similarly, a sales/trader in Switzerland can earn CHF160-300k (112-211k) at the upper end, suggests Robert Walters. While the hedge funds and commodity trading houses may pay a premium to persuade their staff to move to Geneva, they'll be confronted with a newly expensive lifestyle.
Geneva and Zurich may be clean and safe, but property prices and cost of living is notoriously costly. In fact, the cheapest Swiss canton to live in is Uri - essentially as ski resort which offers the lowest income tax and reasonably priced property - so commuting may be necessary.
There are also some quirky legal stipulations that some Londoners may find difficult to live with. In Switzerland, these include a ban on flushing the toilet after 10pm if you live in an apartment and prohibitions to stop you washing your car on a Sunday.
In Singapore, it's illegal to chew gum and you could receive a hefty fine if you fail to flush a public toilet.
