Stocks and taxes in Switzerland: the overview
Capital gains are tax-free, dividends aren't. Here's what you pay tax on with stocks and what belongs in your tax return.
Dividends are income
If a stock pays a dividend, it counts as part of your taxable income. You declare it in the securities register of your tax return, at the gross amount, i.e. before any tax is deducted. The tax rate you pay depends on your total income and your canton.
There is one exception for Swiss stocks: if a company pays out from its capital contribution reserves, that portion is tax-free for you as a private individual. Your bank statement often lists this as a distribution from capital contributions. The bank then reports only the taxable portion as income.
Capital gains stay tax-free
If you sell a stock at a profit, as a private investor in Switzerland you pay no income tax on it. This is one of the biggest differences from other countries. The price for that: you cannot deduct capital losses from your income.
When capital gains become taxable after all
Tax-free treatment applies only to private investors. Anyone trading like a professional dealer must declare the gains as income, plus social security contributions apply. The tax authority judges this based on overall circumstances. Five criteria from Circular No. 36 of the Federal Tax Administration serve as guidance:
Anyone who meets all five generally counts as a private investor. Breaching one criterion doesn't automatically make you a dealer, but it does mean closer scrutiny is likely. Anyone who regularly contributes to a savings plan and holds for the long term is, as a rule, far from that line.
Wealth tax on your portfolio
Your stocks count towards your taxable wealth. What matters is the market value on 31 December. Wealth tax is levied only by the cantons and municipalities, not by the federal government, and each canton has its own allowances and rates. For small to medium wealth it's often modest, but you still have to declare the portfolio.
Swiss and foreign stocks
On Swiss dividends, the federal government withholds 35 percent as withholding tax. You get it back if you declare correctly. Everything on this is in the article Reclaiming withholding tax.
For foreign stocks, the country of origin withholds tax at source. You can have part of it credited via form DA-1, more under Reclaiming foreign withholding tax.
How to declare stocks
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Get the tax statement from your bank
It contains all holdings, quantities, market values as of 31 December, and the year's income.
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Enter holdings in the securities register
Per holding: quantity, year-end market value and gross income. Many tax programs can import the bank's tax statement directly.
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Include withholding tax and foreign tax
For Swiss holdings, correct declaration is enough. For foreign ones, form DA-1 is added.
Frequently asked questions
Do I have to declare stocks that pay no dividend?
Yes. The holding as of 31 December belongs in the securities register and in wealth tax, even if no income was received.
Can I offset losses against gains?
No. Because capital gains are tax-free, capital losses on private assets are not deductible either.
What applies to shares from an employee share plan?
Employee shares and options are often taxed as salary. It depends on the plan; ask your employer or tax authority.
Further reading: ETFs and taxes, Crypto and taxes and Broker comparison.