Crypto Taxes in Switzerland 2024: The Ultimate Guide

<div fs-richtext-component="info-box" class="info-box"><div class="flex-info-card"><img src="https://assets-global.website-files.com/65098a145ece52db42b9c274/650c6f4cef4c34160eab4440_Info.svg" loading="lazy" width="64" height="64" alt="" class="icon-info-box"><div fs-richtext-component="info-box-text" class="info-box-content"><p class="color-neutral-800">This guide is mainly aimed at private investors but also covers tax considerations for professional traders or companies where relevant.</p></div></div></div>

Do I Need to Pay Taxes on Cryptocurrencies in Switzerland?

Yes, an annual wealth tax is levied on cryptocurrencies, collected by cantons and municipalities. This tax applies to all assets, including bank accounts, securities, and cryptocurrencies.

<div fs-richtext-component="info-box" class="info-box"><div class="flex-info-card"><img src="https://assets-global.website-files.com/65098a145ece52db42b9c274/650c6f4cef4c34160eab4440_Info.svg" loading="lazy" width="64" height="64" alt="" class="icon-info-box"><div fs-richtext-component="info-box-text" class="info-box-content"><p class="color-neutral-800">Capital gains and losses from private trading are not directly taxed in Switzerland. Capital gains tax applies only if you're trading as a business or company.</p></div></div></div>

How Is Income From Cryptocurrencies Taxed?

Taxable income from cryptocurrencies can vary, and the Federal Tax Administration (ESTV) often doesn't provide specific guidelines. Income tax is levied if cryptocurrencies are considered income. All crypto incomes are taxed based on the market value of the received coins/tokens, usually when the taxpayer gains control of the asset.

What Are the Tax Rates on Cryptocurrencies?

The value of your cryptocurrencies is assessed on December 31st, using the ESTV price list or, if unavailable, prices from platforms like coinmarketcap.com.

Tax rates vary by canton, typically ranging from 0.3% to 1%, and are progressive, meaning individuals with higher assets pay a higher percentage. The tax exemption is around 100,000 CHF per person.

For more information on cantonal tax rates, click here.

When Is Trading Considered a Professional Activity?

Professional crypto trading has tax implications, as profits must be declared as income. The following criteria can indicate professional trading:

• Frequency: Regular trading over short intervals.
• Duration: Long-term engagement in trading.
• Volume: High trading activity.
• Profit intention: Clear intent to make a profit.
• Organization: Systematic and organized approach.
• Time investment: Significant time spent on trading.
• Livelihood: Crypto income, such as staking, primarily finances your living expenses.

These criteria are not exhaustive, and all factors must be considered.

What Happens to Crypto Losses?

Capital losses from private trading are not tax-deductible in Switzerland.

Example: You buy ETH for 3,000 CHF and later sell it for 2,500 CHF. The 500 CHF loss is not tax-deductible.

How Can I Optimize My Tax Planning?

As a private investor, review your portfolio before year-end and ensure cryptocurrency market values are correct. If necessary, make adjustments or sell cryptocurrencies/NFTs with no clear market value before December 31st to realize gains or losses tax-free.

<div fs-richtext-component="info-box" class="info-box protip"><div class="flex-info-card"><img src="https://assets-global.website-files.com/65098a145ece52db42b9c274/650c6f4b151815fb0be48cec_Lightning.svg" loading="lazy" width="64" height="64" alt="" class="icon-info-box"><div fs-richtext-component="info-box-text" class="info-box-content"><p class="color-neutral-800">Blockpit’s tax software provides a report showing your holdings and their market value as of December 31st, ending the hassle of maintaining records in Excel!</p></div></div></div>

How Do I File Crypto Taxes?

The process for declaring crypto taxes depends on the canton you live in. The easiest way is to file your taxes online. You can find more information on how to file taxes on your canton’s website. A full list of canton links is available here.

<div fs-richtext-component="info-box" class="info-box protip"><div class="flex-info-card"><img src="https://assets-global.website-files.com/65098a145ece52db42b9c274/650c6f4b151815fb0be48cec_Lightning.svg" loading="lazy" width="64" height="64" alt="" class="icon-info-box"><div fs-richtext-component="info-box-text" class="info-box-content"><p class="color-neutral-800">Whether filing online or on paper, Blockpit’s tax report ensures you are well-prepared.</p></div></div></div>

When Is the Deadline to File My Taxes?

The Swiss tax year aligns with the calendar year, running from January 1 to December 31. Generally, you must file your taxes by March 31st of the following year, but this depends on the canton. Most cantons offer free extensions if you cannot meet the deadline.

What Records May the ESTV Require?

The ESTV requires detailed records of crypto transactions to be kept for at least five years, including:

• Wallet addresses: Hot or cold wallets with the taxpayer’s transactions.
• Transaction data: History from exchanges and wallets.
• Bank statements: Documents showing fiat currency deposits and withdrawals.
• Transaction details: Type of crypto assets, date, transaction type, amount, and CHF value at the time of the transaction, as well as the cumulative value of assets.

<div fs-richtext-component="info-box" class="info-box protip"><div class="flex-info-card"><img src="https://assets-global.website-files.com/65098a145ece52db42b9c274/650c6f4b151815fb0be48cec_Lightning.svg" loading="lazy" width="64" height="64" alt="" class="icon-info-box"><div fs-richtext-component="info-box-text" class="info-box-content"><p class="color-neutral-800">Blockpit automatically stores all this information based on your imported data in your portfolio. Tax reports you’ve created are clearly listed in the app and accessible at any time.</p></div></div></div>

Your Crypto Tax Report with Blockpit

If you’ve filed taxes before, you know how time-consuming it can be to research, document, and prepare everything.

Blockpit’s legally compliant tax reports save you time and provide a comprehensive overview of all your crypto transactions, ultimately giving you exactly what you need: a legally compliant PDF that you can submit to the tax office without hassle.

For all the details, check out the complete PDF of our sample crypto tax report.

Crypto Tax Report Overview

You will receive a comprehensive overview of your tax-free capital gains and losses, income from movable property, and the total value of non-deducted transactions.

Filling Instructions for the “Wertschriften- und Guthabenverzeichnis”

Single Transaction Overview

With a detailed list of all your transactions, you’ll have a complete history of your crypto year at your fingertips—perfect for a manual review and as documentation if there are any inquiries.

When Are There No Crypto Taxes?

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Purchasing Cryptocurrencies with Fiat (CHF, EUR, USD)

<div fs-richtext-component="tax-status-tax-free" class="tax-status-pills tax-free"><div>Tax-Free</div></div>

Purchasing cryptocurrencies with fiat currencies is not taxable. Whether via bank account or credit card, it’s important to document the purchase for the cost basis. Blockpit does this automatically for you.

Purchasing Cryptocurrencies with Crypto

<div fs-richtext-component="tax-status-tax-free" class="tax-status-pills tax-free"><div>Tax-Free</div></div>

For private investors, purchasing cryptocurrencies with other cryptos is not taxable. Professional traders, however, must pay capital gains tax. The sale is considered a barter transaction, with the first transaction triggering a taxable gain or loss.

Transfers Between Two Wallets

<div fs-richtext-component="tax-status-tax-free" class="tax-status-pills tax-free"><div>Tax-Free</div></div>

Transferring cryptocurrencies between your own wallets is tax-free. To ensure tax reports do not mistakenly treat this as a sale, you should label these internal transfers in Blockpit.

Gifting Crypto

<div fs-richtext-component="tax-status-tax-free" class="tax-status-pills tax-free"><div>Potentially tax-free</div></div>

Gifts of crypto assets are subject to cantonal tax regulations, with rates ranging from 2% to 36%. However, there are exceptions, allowances, or reduced rates, particularly for gifts between close family members.

Donating Crypto to Charities

<div fs-richtext-component="tax-status-tax-free" class="tax-status-pills tax-free"><div>Tax-Deductible</div></div>

Crypto donations to qualified charities in Switzerland are tax-deductible, with the market value at the time of donation being key. Check for any tax obligations when donating cryptocurrencies.

Fraud, Theft, and Losses

<div fs-richtext-component="tax-status-tax-free" class="tax-status-pills tax-free"><div>Tax-Free</div></div>

Losses from fraud or theft only affect the wealth tax. The loss reduces the taxable crypto portfolio if proven. Consult a tax expert for complex cases.

HODLing

<div fs-richtext-component="tax-status-tax-free" class="tax-status-pills tax-free"><div>Tax-Free</div></div>

Holding cryptocurrencies is tax-free but relevant for the wealth tax. If the total portfolio value exceeds the exemption limit on December 31, wealth tax becomes due, regardless of the holding period.

Taxation of Standard Transactions

<div fs-richtext-component="info-box" class="info-box"><div class="flex-info-card"><img src="https://assets-global.website-files.com/65098a145ece52db42b9c274/650c6f4cef4c34160eab4440_Info.svg" loading="lazy" width="64" height="64" alt="" class="icon-info-box"><div fs-richtext-component="info-box-text" class="info-box-content"><p class="color-neutral-800">In Switzerland, the sale of cryptocurrencies is tax-free as long as the Federal Tax Administration (ESTV) considers you a private investor. However, professional traders must pay capital gains tax when selling, exchanging, or using cryptocurrencies or stablecoins to purchase NFTs, goods, or services. All gains and losses from these transactions must be declared in the annual tax return.</p></div></div></div>

Airdrops

<div fs-richtext-component="tax-status-income-tax" class="tax-status-pills"><div>Taxable asset income</div></div>

Cryptocurrencies received through airdrops are subject to income tax and considered taxable asset income. The market value at receipt or disposal is key. If no market value is available, a value of zero can be applied.

Hard Forks

<div fs-richtext-component="tax-status-income-tax" class="tax-status-pills"><div>Taxable asset income</div></div>

While the ESTV provides no specific guidance on hard forks, they are likely treated like airdrops and subject to income tax. The market value of the new cryptocurrency at receipt is what counts.

Mining

<div fs-richtext-component="tax-status-income-tax" class="tax-status-pills"><div>Taxable asset income</div></div>

Mining income is considered taxable asset income and subject to income tax. Coins are valued at market price in CHF upon receipt and disposal. Some cantons, such as Zug, Basel-Stadt, and Schwyz, set thresholds for when mining is considered business income.

- Zug: Mining is classified as a business if annual earnings exceed 100,000 CHF.

- Basel-Stadt: Mining is considered self-employment if annual earnings exceed 50,000 CHF.

- Schwyz: Mining is classified as a business if annual earnings exceed 50,000 CHF.

It's advisable to consult the relevant cantonal tax authority for up-to-date rules.

Crypto Trading: Futures vs. Margin Trading

<div fs-richtext-component="tax-status-income-tax" class="tax-status-pills"><div>Taxable asset income</div></div>

Gains from futures and margin trading are treated as taxable asset income. Losses cannot be claimed unless you are trading professionally.

Crypto Payments as Salary

<div fs-richtext-component="tax-status-income-tax" class="tax-status-pills"><div>Taxable earned income</div></div>

Cryptocurrency received as salary or compensation must be declared as taxable earned income. It should be recorded at its market value in CHF when received on your tax return.

Fees

<div fs-richtext-component="tax-status-tax-free" class="tax-status-pills tax-free"><div>Tax-deductible</div></div>

In Switzerland, administration costs related to cryptocurrencies can be deducted from taxes. Some cantons offer flat-rate deductions, while others require actual proof. Always keep receipts to deduct the correct amounts. It is recommended to review the specific rules of each canton.

Taxation of DeFi Transactions

Staking

<div fs-richtext-component="tax-status-income-tax" class="tax-status-pills"><div>Taxable asset income</div></div>

Rewards from staking cryptocurrencies are treated as asset income and are subject to income tax. The taxation depends on the taxpayer’s residency and the nature of the staking activities. It is also essential to determine whether you are classified as a private investor or a self-employed trader. It is important to check the specific tax regulations in your canton.

Lending

<div fs-richtext-component="tax-status-income-tax" class="tax-status-pills"><div>Taxable asset income</div></div>

Interest from crypto lending is considered taxable income and subject to income tax. Taxation is based on the market value of the cryptocurrency at the time of receiving the interest. These earnings must be reported in your tax return to be properly taxed.

Taxation of NFTs

The ESTV has not yet issued specific guidelines on taxing NFTs, but they are likely to be taxed similarly to other cryptocurrencies. NFTs are considered assets and are only subject to wealth tax for private investors. Professional traders and companies must declare gains or losses from NFT sales.

Purchasing an NFT is tax-free, as it is acquiring an asset. If you are a professional trader or company buying an NFT with cryptocurrencies like ETH or SOL, it may trigger a taxable gain or loss. This is similar to exchanging cryptocurrencies.

FAQ

How are cryptocurrencies classified for tax purposes in Switzerland?  

Cryptocurrencies are considered assets. However, as a new asset class, they may be treated differently than traditional investments for tax purposes.

Is crypto trading tax-free in Switzerland?

Gains from private trading are tax-free, but losses are not deductible. Professional trading, however, may be taxable depending on how the tax authority classifies your activities.

Is HODLing cryptos taxable in Switzerland?

Holding cryptocurrencies is not taxable, but the total value is subject to annual wealth tax if it exceeds the exemption limit.

How do you file your crypto taxes in Switzerland?

Tax returns are filed with the cantonal tax administration, usually electronically. Each canton has specific instructions and processes.

Why do you need crypto tax software in Switzerland?

Crypto tax software helps track transactions, calculate gains and losses, and prepare tax returns.