Exempt capital gains, stamp duty, dividends at the cantonal rate (ICTax) and wealth tax: the complete guide for the Swiss investor.
This is the great Swiss advantage: capital gains on private wealth are tax-exempt for an investor considered private (as opposed to the status of securities dealer). You pay nothing on your capital's growth when you sell.
On purchase/sale, a transaction stamp duty applies: 0.15% on foreign securities (most ETFs) and 0.075% on Swiss securities. It's the only “tax cost” on the transaction.
The dividends paid out by a distributing ETF are taxed as income, at your canton's and municipality's rate. The taxable amounts of funds are listed in ICTax, the official tool of the Federal Tax Administration (AFC).
On Swiss-source dividends, a 35% withholding tax is levied, but it is recoverable if you declare your securities correctly.
A Swiss specificity: an annual wealth tax (cantonal and municipal, generally ~0.1% to 1%/yr depending on the canton) applies to the total value of your declared net wealth, including your ETF portfolio.
No, capital gains on private wealth are tax-exempt (0%) for a private investor. Only a 0.15% stamp duty applies to purchases of foreign ETFs.
Dividends are taxed as income at the cantonal rate. Taxable amounts are in ICTax (AFC). A 35% withholding tax on Swiss dividends is recoverable via the tax return.
Yes, an annual cantonal wealth tax (about 0.1% to 1%/yr depending on the canton) applies to the total value of your net wealth, ETFs included.