While it’s technically German territory, the town of Büsingen am Hochrhein is located entirely within Switzerland. Its residents use Swiss francs, speak with a Swiss accent, and their children cross the border daily to go to school.
Every year on August 1, Swiss National Day, tourists flock to Büsingen am Hochrhein for a summer holiday. Canoes and rafts drift along the Rhine River, and locals and visitors alike sunbathe on the grassy banks. On the quiet streets, a bus occasionally passes by, decorated with Swiss flags.
According to tourists, this is a perfect festival scene to celebrate National Day, except for one detail: these activities are taking place in Germany. Büsingen am Hochrhein belongs to Germany but is located entirely within Switzerland. Therefore, its residents have long been accustomed to adopting the lifestyle, currency, and even the electrical system of their neighboring country.
The people of Büsingen speak Swiss German and prefer using Swiss francs over euros. In fact, until the late 1980s, Büsingen didn’t even accept German marks. The post office only accepted Swiss francs for German stamps. Children attend a German elementary school, but many high school students cross the border to attend classes in Switzerland. The majority of residents work in nearby Swiss towns and are paid in francs, so their preference for this currency is understandable. Even the town’s electricity is supplied by Switzerland. The only thing that reminds them they are German is paying income tax to their home country.
The coexistence of both German and Swiss cultures and habits in Büsingen is evident in many aspects: residents can choose between two postal codes, two phone networks, and even two insurance systems. Homes and hotels have both German and Swiss power outlets. The town has two police forces. A troublemaker arrested here could be tried in either a German or a Swiss court, depending on which police force made the arrest.
The town’s strange location originated from a family feud in 1693. At that time, Büsingen was under the control of the Austrian nobleman Eberhard Im Thurn. Although born into a Protestant family, Eberhard was accused of secretly converting to Catholicism after a quarrel with the town’s pastor. He was kidnapped by his own cousins and handed over to Swiss authorities in Schaffhausen, where he was imprisoned for six years. When he was released, Eberhard had genuinely converted to Catholicism. This event nearly led to a war between Austria and Switzerland. Afterward, although Austria sold many territories to the Canton of Zurich, they kept Büsingen. Eventually, the area became a part of Germany.
Most residents of Büsingen believe that life would be easier if they belonged to Switzerland. However, that is unlikely to become a reality. In 1918, Büsingen’s residents held a referendum, with 96% voting to join Switzerland. However, since Switzerland could not provide land in exchange, Germany rejected the proposal, and Büsingen remained under German rule.
In 1967, the town signed a customs union agreement with Switzerland, making it the only German territory outside of the European Union, exempt from EU economic regulations. This has turned Büsingen into a tax haven: goods purchased in the EU can be brought back here for a VAT refund, while shopping within the town is only subject to Swiss VAT, which is much lower than Germany’s. Residents also do not have to pay property taxes.
The downside is that income tax in Büsingen is higher than in neighboring Swiss towns, causing many young people to move across the border. But the situation is reversed in retirement: like other parts of Germany, pensions are almost tax-free, making Büsingen an ideal place for many Swiss people to choose for their golden years.
(According to BBC, Swissinfo)
