Income Tax in Switzerland?

As I understand previous posts in this (and other) discussion boards, there is no capital gains tax for private investors in Switzerland. Also, capital gains are not considered ordinary income that would be subject to income tax.

A paradise for speculators and (semi-)professional traders, even considering the high cost of living there?

There might be one problem though. In many countries taxation is different for "private" and "professional" investors/traders. Capital gains from professionals that are obtained in the course of running a business are often treated as ordinary income.

What are the criteria to be considered a "professional" by Swiss tax authorities? I assume that someone isn't running a brokerage business or managing other people's funds. If that person derives most of his income from capital gains, or if such persons trades very frequently, will he be considered a "professional" so that his capital gains are subject to ordinary income tax? What are the criteria used?

I wonder whether someone could shed some light on the situation for traders there. Thanks.

 

It depends on your citizenship status. If you are US citizen you pay taxes anywhere you go. Tax haven in Europe are Gibraltar and Liechtenstein ,Chanell Island and Malta.
Walter

 

Felix,

Are daytrading profit treated as capital gain in Switzerland ?

 

@Walther

I'm not a U.S. citizen. In most European countries taxation isn't based on citizenship, but on resident status. You pay your taxes where you live. Re-locating to Switzerland shouldn't be a big problem for EU nationals.

@shyhh

This I don't know, and I'm posting just to find it out. There is nothing special about daytrading, except that you'll have a much higher turn-around than the typical "investor". If your income is largely based on trading, you might be considered a "professional" trader and be treated as if you were running a business. So your trading gains might be considered ordinary income.

I'm just wondering what the criteria for determining "professional status" for Swiss tax purposes may be, or if there are such limitations at all. Perhaps someone from Switzerland does know more?

 

www.swiss-tax.ch ... click on the Union Jack for the English version

and keep in mind that most taxes in Switzerland are negotiable ... depending on the Kanton you choose to take residence in.

regards

wild

 

Hello Felix, do you still come or post here ? I am an old timer with whom you had a deal for Switzerland.