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
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.