20.02.2026
Investing in shares means hoping that share prices will increase. But when filling out your tax return, you have to ask yourself: what can I keep? The good news is that Switzerland is fiscally attractive for private investors – if you know the rules. We will show you what matters most.
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Investing on the stock exchange is not just about returns and risk, but also about taxes. Many new entrants fear that the tax authorities will take away a large part of their profits again. This concern is often unfounded in this country. By international comparison, the Swiss system is very attractive to private investors. Nonetheless, there are pitfalls that will become expensive.
In order to correctly pay tax on your shares in Switzerland, you need to understand a key distinction: the difference between the profit generated by the sale of a security (capital gain) and the income generated by a security on an ongoing basis (return on assets).
This is probably the biggest advantage for investors in Switzerland. If you buy a share and then sell it back at a higher price, the profit you make – known as capital gains – is tax-free for private individuals. You therefore pay no income tax on this profit.
An example calculation: you buy 50 shares in a Swiss company for CHF 100 each. Five years later, the rate stands at CHF 150. You sell your units and generate a profit of CHF 2,500. This amount belongs to you completely tax-free. In many other countries (such as Germany or the US), you would have to pay capital gains tax on this profit. In Switzerland, there is no such tax if you are considered a private investor.
But be careful: this rule only applies to private assets. As soon as the tax authority classifies your activity as “commercial”, share profits are taxed in the same way as normal income – including social security contributions. We’ll explain this in more detail in a moment.
While share price gains are tax-free, the income situation is different. Dividends (for shares) and interest (for bonds) count as income. You must enter this income as income from securities on your tax return. It will then be added to your other income (salary) and taxed at your personal tax rate.
To ensure that you pay tax on your dividends in Switzerland, the state applies a mechanism: withholding tax. If a Swiss company pays dividends, domestic investors receive only 65 percent of the amount. The remaining 35 percent goes directly to the Federal Tax Administration.
If you have declared correctly, the tax office will charge the CHF 35 retained with your final invoice or pay it back.
Important: if you forget the declaration, the money will be lost. Withholding tax serves as a “pledge” to guarantee your honesty.
There is an exception to this rule for dividends: if the distribution comes from “capital contribution reserves” (often abbreviated as KER or premium), it is tax-free for private investors. This is usually shown separately in the annual statement of your custody account (tax statement). Large Swiss corporations occasionally use this opportunity to pay out tax-free dividends.
Many investors who invest in ETFs (exchange traded funds) or funds ask themselves: should I choose a distribution fund or an accumulation (reinvestment) fund?
In many countries, this is a tax decision. This hardly plays a role in Switzerland. The Federal Tax Administration simply looks at what dividends and interest have been accumulated internally in accumulation funds. It taxes this amount as if it had been paid out to you. This means that, even with accumulation funds, you must pay tax on fictitious income. Your bank tax statement usually shows this “taxable income”.
The greatest risk for active investors is reclassification as a commercial securities trader. If this happens, your capital gains are liable for taxation in Switzerland. You also have to pay OASI/DI/EO contributions on profits, which massively reduces returns.
When does this happen? The tax authorities take a close look at your trading. Important criteria are a high frequency of transactions, short holding periods or the use of debt capital (investing on credit). For clarity, Circular No. 36 of the Federal Tax Administration is in place. Those who meet the five points listed there are certainly considered private investors (safe havens).
Even if you do not meet one of these criteria (e.g. because you transfer a lot once and exceed the volume limit), you will not immediately become a professional trader. The authorities will then examine the individual case more closely. People who invest their money “normally” to make provisions for old age or to build up assets, rather than trading daily like a hedge fund manager, rarely have problems.
In addition to income tax, there is wealth tax in Switzerland. Your taxable assets include shares, funds, bonds and cryptocurrencies in your custody account. The tax value as at 31 December is decisive for the measurement. For listed securities, this corresponds to the closing price on the last day of trading in December, regardless of how prices have developed during the year.
The Federal Tax Administration publishes an annual “price list” (ICTax) containing the tax-relevant closing prices for almost all common securities.
If you hold shares from abroad (e.g. Apple, Microsoft or international companies from the EU), these countries often also withhold a tax on dividends – the foreign withholding tax. As you must pay tax on the dividend as income even in Switzerland, double taxation would occur.
Switzerland has double taxation agreements (DTAs) with many countries. Thanks to these, you can have part of the foreign tax credited or reclaim it. Special forms are available for this purpose in the tax return (e.g. form DA–1). Offsetting is often worthwhile only if you have a certain amount of foreign dividends (usually tax that can be offset from CHF 100), as the expense would otherwise exceed the income.
For US equities, you should complete the W–8BEN form at your bank. This automatically reduces the tax deduction in the USA from 30 to 15 percent, making things much easier.
Digitization doesn’t stop at the tax office. Whether you use TaxMe in the Canton of Bern or the software of the Canton of Zurich – the principle remains the same. To avoid errors, you should proceed in a structured manner.
Most Swiss banks, including PostFinance, offer an electronic tax statement (e-tax statement). This PDF contains a clear summary of all relevant figures and often a barcode for importing. You simply load the file into your tax software (e.g. TaxMe, eTax) and all dividends, purchases, sales and assets are automatically entered in the securities directory. This saves a lot of time and prevents typos. Account statement, tax statement and interest statement | PostFinance
Taxes are complex, but they are no obstacle to private investment in Switzerland – on the contrary. The tax exemption on capital gains is a top argument for opportunities in terms of long-term asset growth with shares. If you do your homework, use the bank’s tax statement and know the basic rules for dividends and commercial trading, you can face your tax return without worry.
Do you have questions about implementation in your custody account or would you like to know how to make your investment strategy tax-efficient? Our e-trading platform offers you all the tools you need for independent trading – and you can obtain the necessary documents for the tax office conveniently at the click of a mouse.
This article is for information purposes only and does not constitute tax or investment advice. Financial investments entail risks up to and including total loss. Tax laws can change. For binding information, please contact a specialist.
