Investments in Switzerland will not be subject to capital gains tax (CGT) for most individuals, unless you are considered a 'professional' trader or investor. Private individuals do not pay capital gains tax on investments such as stocks, bonds, and funds.
This means that if you buy shares and sell them later at a profit, you do not owe tax on the gain, provided that you are classified as a private investor rather than a professional trader.
Swiss tax authorities distinguish between private investors (who benefit from tax-free capital gains) and professional traders (who may be taxed as self-employed income). If your trading activity is deemed professional, capital gains may be taxed as income at ordinary tax rates.
Fortunately, the Swiss Federal Tax Administration (FTA) provides an idea of the criteria they use to assess whether an individual qualifies as a professional trader, including:
Even if one or more of these indicators applies to you, it does not automatically classify you as a professional trader. The Swiss Federal Tax Administration assesses the overall context of an individual's trading activities to make this determination. It is not always in the FTA's best interests to classify you as a professional trader, as any losses can be deducted from your taxable income!
There is a document from 2012 published in German, French & Italian titled "Circular no. 36: Professional securities trading" that goes into more depth, but the key points are the indicators above.
German
French
Italian
Most everyday investors who buy and hold stocks or ETFs over the long term will not be subject to capital gains tax.
Remember: Capital gains are tax-free, but dividends are not. If your investments generate dividends, these are subject to income tax at federal, cantonal, and municipal levels. This means that while the growth of your investments remains untaxed, any income generated along the way may still be taxable.
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Please note that all content within this response has been prepared for information purposes only. This response does not constitute financial, legal or tax advice. Always ensure you speak to a regulated Financial Adviser before making any financial decisions.