I prefer to invest in Indian markets over European, says Ashish Verma

Something similar was experienced by Ashish Verma, Global Lead of Strategy & Insights at Restaurant Brands International, when he moved from India to Indonesia via Malaysia and finally set base in Zurich, Switzerland. 

In an email interaction with Livemint, he shares his bitter-sweet experiences — a few of which are revelatory and jaw-dropping, while the others may appear routine to some.

Edited Excerpts:

How are the earnings and expenses managed in Switzerland vis-a-vis in Asia, particularly in India. There is a perception that in India — expenses are lower, and even if one earns less, you can save a good amount of money. How true is this? 

While doing calculations, several people go wrong when they evaluate offers for working in a foreign country. Switzerland offers one of the ‘best salaries’ in the world and perhaps the best in Europe. Based on my experience of working in four countries thus far, the formula to calculate ´best salaries´ is not based on the magnitude of the amount that gets credited in your bank, it is rather based on the magnitude of net savings you have every month (i.e., salary minus expenses). 

Take for example, an 8 year old IT professional gets 1 Lakh INR per month in India and due to low cost of living he manages the month in 40K INR and saves 60K INR that’s 60% of savings.

Whilst the same professionals get at least 6000 CHF (Swiss Franc) per month (nearly ₹5.6 lakh) in Switzerland but due to higher ‘standard’ as well as cost of living he ends up spending 4500 CHF and saves only 15% i.e., 1500 CHF.   

However, when you convert the saved amount in INR it’s approximately 1.4 lakhs which is more than double of what he was saving in India. 

It is important to remember that Switzerland offers low rates of interest on loans but lower returns on investment instruments like equity/debt funds as well. 

Therefore, I prefer sending my money to India and investing in the Indian markets. However, I would take a loan in Switzerland if a need arises to buy high ticket items such as cars, motor bikes etc.

What were your expectations before moving to Zurich in terms of expected income and savings? Were those expectations met? If not, why not?

I would say that I was in a comfortable space from the beginning, since I had done my homework well. I got in touch with a professional consultant (who charged 80 CHF/ hour) to help me know all possible details. 

Besides that, I contacted a few Indians living in Zurich on Linkedin and Facebook Expat community pages. I did nearly 9-10 hours of video calls with these people to get their perspective which helped me manage my expectations to a great extent.

However, a few yearly taxes (fees) and heavy/strict penalty system was a shocker. 

Can you tell me what extra expenses did you have to incur there which you were not aware of earlier?

There were a few surprises, especially related to yearly indirect taxes/fees that you have to pay to the local municipality office or fines/penalties which are nearly impossible to avoid. For example 

• Yearly Radio and TV taxes (that you never use these days, crazy right!)
• Yearly Pet tax (if you have one)
• Society Welfare fees
• Expensive and Special bags for garbage collection & price per kilo for garbage disposal (in some cases) 
• Mandatory insurances 
• Supplementary insurances which are not mandatory, but you would need them.
• Very strict penalties for over speeding on road etc. (almost unavoidable) 
• Penalties for not following Garbage disposal rules.
• Improper usage of public transport etc.

In European countries, the quality of life is supposedly better, thus taking away a chunk of your income. Can you explain what are those expenses which you don’t need to incur in India?

That´s a great question, while moving abroad, we often talk about savings and salaries at large but great standards of life are often not discussed much which is a part of the package. Like I have already mentioned in the earlier question, the magnitude of savings is higher here. But in return, the quality of life that you experience here is 100 times better than many other developing and populous nations. 

For example, international school fees are very high but Quality and methods of education are great (if you opt for a local language school, it’s generally free). Magnitude of yearly Taxes and insurance are high but in return you get better quality infrastructure of roads , safety, clean and green environment etc.  

Do you plan to settle down there in the near future?  Why? (If no, then why not?) Does this decision have anything to do with your income and/or savings?

This is a great country especially when it comes to safety, education, medication, infrastructure etc. and majority of Indians who I meet are willing to stay back. However, it doesn’t work for me due to my priorities and choices in life. Few personal reasons:

• Getting a nationality of permanent residency is a 10 year long and difficult process no guarantees) 
• This country spoils you, I often call it a bubble which is unreal. Outside world is not as organised and comfortable and I want my daughter to be exposed with bigger challenges in her early life to prepare her for future competition 
• Language is a very big barrier and often doesn’t let you mingle with locals 
• It’s a very peaceful and quiet country, and people are generally warm but not social. This doesn’t suit my outlook towards life.
• Old age life can be very tough here and expensive due to no domestic help offered and poor connections with locals might make it very melancholic and monotonous. 

Therefore, I am here with my family for a few more years to experience this beautiful country and possibly the whole of Europe, learn the good from the culture and take back beautiful memories.

What advice would you give to someone who is set to move to Western Europe from India for a job or work?

Western Europe offers a great mix of attributes that I discussed before encompassing better income, work life balance, quality of life, travel opportunities, learnings and exposure, safety and security, good education for kids, more time for family etc. Travelling has been proven to be one of the best ways to learn and grow as an individual. 

When you travel and stay in a new country, you are exposed to different situations, people, and places that shape your approach at the simplest level. 

Besides that, you may experience better work life balance, hence more time for your family when they need it the most.

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Updated: 30 Oct 2023, 12:35 PM IST