View Single Post
Old 06.03.2018, 17:03
christunajek christunajek is offline
Join Date: Mar 2018
Location: usa
Posts: 2
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
christunajek has no particular reputation at present
Re: Short term capital gains taxes in switzerland

Thank you everybody for your replies

Private individuals do not normally pay capital gain taxes on sale of "moveable objects" such as securities in Switzerland to the extent that the trading is not considered a business activity.

The document "Kreisschreiben Nr. 36 Gewerbsmässiger Wertschriftenhandel" lists five "safe haven" tax-free trading rules whereby an individual would not be considered a busines trader. If some of rules are not complied with, classification as a business trader can not be ruled out:

1. The holding period of the sold securities is at least 6 months.
2. The transaction volume (corresponds to the sum of all purchase prices and sales proceeds) per calendar year is no more than five times the amount of the securities and credit balances at the beginning of the tax period.
3. Obtaining capital gains from securities transactions is not a necessity to replace missing or lost income for living. This is usually the case when the realized capital gains amount to less than 50% of the net income in the tax period.
4. The investments are not leveraged or the taxable investment income from the securities (such as interest, dividends, etc.) is greater than the proportionate interest on debt.
5. The purchase and sale of derivatives (especially options) is limited to hedging own securities positions.
I dont meet number 1, 5 and I think 2 as well so its not looking good

You indicate you are resident in the USA. So isn't it irrelevant what the Swiss tax system is (except for withholding tax) as you pay your taxes to Uncle Sam??
It could be worth it to change that although its not easy. Im also a citizen of one of the EU27 countries
Reply With Quote