- 0% tax on your capital gains, as long as you remain a private investor.
- Dividends are taxed as income, and your portfolio is added to your taxable wealth.
- Fill your 3a first, then a securities account with low-cost products.
What is taxed, and what is not
| Taxed? | |
|---|---|
| Capital gain on sale (shares, ETFs, bonds) | No |
| Dividends and interest | Yes, as income |
| Portfolio value on 31 December | Yes, cantonal wealth tax |
| Buying and selling through a Swiss intermediary | Stamp duty |
An ETF bought for 10'000 francs and sold for 14'000: the gain is not taxed. In France, it would be taxed at about 30%.
The FTA can reclassify you as a professional securities trader: very frequent transactions, very short holding periods, buying on credit, gains that make up most of your income. Your gains then become taxable. For a long-term investor, this is extremely rare: see the 5 conditions of the FTA.
How to pay less tax when you invest
Five levers, all legal, from the most profitable to the most technical:
- Pillar 3a first. The contribution is deductible and usually gives you back about a quarter of its amount. As long as the money stays there, there is no tax on dividends and no wealth tax. The capital is only taxed on withdrawal, at a reduced rate.
- A foreign broker for your securities account: no Swiss stamp duty on your purchases and sales.
- Reclaim the 35% withheld on Swiss dividends, by declaring your securities in the securities list. Forget it, and the money is lost.
- Reclaim US tax. The United States withholds 15% on their dividends. With form DA-1, attached to your tax return, Switzerland gives you part of it back.
- Aim for capital gains rather than dividends. For the same return, what comes from a rising price is not taxed, what is paid out as a dividend is. An investment that pays out little therefore leaves more after tax.
An accumulating ETF does not make the tax disappear: its dividends are reinvested, but still taxed every year as income. Only the part that comes from a rising price is exempt.
The 35% withholding tax
On every Swiss dividend, 35% is withheld at source, but you get it back if you declare your securities. You receive 65% of the dividend; the rest comes back after your tax return, thanks to the tax statement from your bank or broker. How to fill in the securities list: declaring your securities.
On foreign securities, the country of origin also withholds a tax, partly recoverable under tax treaties.
Stamp duty
Every purchase and sale through a Swiss bank or broker pays a small federal tax. It is 0.075% on Swiss securities and 0.15% on foreign ones, like most ETFs. Buying 10'000 francs of an ETF costs 15 francs, and selling it the same. With few transactions, the impact stays small. A foreign broker does not charge it: see Swissquote or Interactive Brokers.
3a or securities account: in which order
Pillar 3a first, because its tax saving is secured whatever the market does. It is capped and locked until 60, with some exceptions. The securities account comes next: no cap, no deduction, but available at any time. In both cases, capital gains are not taxed.
Pillar 3a and the securities account side by side
| Pillar 3a | Securities account | |
|---|---|---|
| Annual cap | CHF 7'258 (employee), CHF 7'373 in 2027 | None |
| Tax deduction | Yes | No |
| Wealth tax | No | Yes |
| Possible equity share | Up to 100% depending on the provider | Free |
| Availability | Locked until 60, with exceptions | At any time |
The fees that eat into returns
Fees are charged every year, whether the market rises or falls: over 20 years, they often weigh more than tax. Three layers add up: the fund's internal fees (the TER, invisible on your statement), the custody fees of your account, and the fees on each order.
About CHF 72'000 of difference for 1.4 points of fees a year.
Typical fees by product
| Product | Typical TER | Custody |
|---|---|---|
| Index ETF (major indices) | 0.07 to 0.20% | 0% with some online brokers |
| Bank index fund | 0.15 to 0.45% | 0.10 to 0.30% |
| Active fund | 0.80 to 1.80% | 0.30 to 0.50% |
The full breakdown of ETF costs is in our guide to ETFs in Switzerland.
Going further
The fund's domicile matters. With an ETF domiciled in Ireland, US withholding tax on dividends is taken inside the fund and lost; with an ETF domiciled in the United States, it can be reclaimed with form DA-1. The gap is small, and the full trade-off is in our ETF guide.
Watch the currency exchange. Buying an ETF in dollars or euros means converting your francs. A bank can charge close to 1% on the exchange, an online broker much less: on regular purchases, it is often the first hidden cost.
Keep wealth tax in mind. Wealth tax is cantonal and varies widely from one canton to another. It stays modest for most savers, but it grows with your portfolio, whereas pillar 3a is not subject to it.
What allocation for you?Simulate equities, bonds and cash over your horizon.
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Frequently asked questions
Are gains on shares and ETFs really tax-free in Switzerland?
Yes, for a private investor. Capital gains on shares, ETFs and bonds are not taxed, as long as you do not meet the criteria of a professional securities trader. Dividends and interest, however, are taxed as income.
How can I pay less tax when I invest?
Fill your pillar 3a first (deduction, and no tax on dividends or wealth while the money stays there), use a foreign broker (no stamp duty), reclaim the 35% withholding tax, reclaim US tax with form DA-1, and favour capital gains over dividends.
How do I reclaim the 35% withholding tax?
By declaring your securities and their income in the securities list of your tax return. Your bank or broker provides the statement. The amount is refunded or offset against your taxes.
Should I fill pillar 3a or a securities account first?
Pillar 3a first: the contribution is deductible and usually gives back about a quarter of its amount in tax, whatever the market does. Then the securities account, with no cap and no lock-in.
What TER should I aim for on an index ETF?
On major indices, under 0.20% is easy to find. Over 20 years, 1.4 points of extra fees cost about CHF 72'000 on CHF 100'000 invested at 6%.
Do I pay stamp duty with a foreign broker?
No. Stamp duty is only due if a Swiss intermediary is involved in the transaction. A foreign broker does not charge it, and you do not owe it either.
Are my investments subject to wealth tax?
Yes. Their value on 31 December is added to your taxable wealth in your canton, above an exempt amount that varies by canton. Pillar 3a is not part of it.
Sources: FTA, circular no. 36 (professional securities trading) ; Federal Withholding Tax Act (VStG / LIA) ; Federal Stamp Duty Act (StG / LT) ; BVV 3 / OPP3 art. 7 ; FSIO, 2026 limits ; ordinance on the crediting of foreign withholding taxes (SR 672.201) and form DA-1 ; Switzerland-United States double taxation agreement. ViaVest calculations.