Tax-Free Capital Gains: When Does Trading Become Professional?
Why private gains are tax-free in Switzerland and the criteria that can change that.
5 min read · Savings & Investing
Life situations: Investing and Wealth Building
Capital gains on private assets are tax-free in Switzerland. That changes if the tax office classes you as a professional trader.
The criteria
- Holding period of less than six months.
- Transaction volume above five times the starting capital.
- Profits making up a large part of your income.
- Use of borrowed money and derivatives.
- Net dividend after taxCHF 490 · 70 %
- Income tax dueCHF 210 · 30 %
Example with default values. Open the calculator →
Why it matters
If you are classed as a professional, gains are taxed as income and social contributions are due. Meeting some criteria does not decide the case, but it increases risk.
Stay on the safe side
Invest for the long term, avoid leverage and ask your tax office or adviser in unclear cases. Compare returns after costs with the fee impact calculator.
Try it yourself: Swiss Dividend Income After Tax
Change any input and the result updates instantly. Nothing you enter is sent to a server.
- Cash received (after 35 %)
- CHF 455
- Withholding tax reclaimed via tax return
- CHF 245
- Income tax due
- CHF 210
- Net dividend after tax
- CHF 490
- Gross yield
- 3.68 %
- Net yield after tax
- 2.58 %
- Net dividend after taxCHF 490 · 70 %
- Income tax dueCHF 210 · 30 %