donnags1964
New member
I am living in Switzerland and plan to start investing around 5-10k every quarter (so 1 transaction per quarter) on an ETF (something like iShares Core MSCI World UCITS ETF) through a broker. I have read that there are 5 criteria outlined by the FTA to be considered as a private investor (listed below). My concern lies on point 2: I have zero investment capital at the beginning of the tax year, so how can my transaction volume not be higher than my capital at the beginning of the year. Let’s consider I’ll put 20k through 2024 and that I meet all the other criteria. Am I missing something?
- Investment terms: You hold the securities you buy for at least six months before you resell them.
- Transaction volume: The total, combined value of all your purchase and sales made in one calendar year is not more than five times the value that your investment capital had at the beginning of the tax year.
- Main income: You do not rely on investment returns to supplement your income for your regular living expenses. The rule of thumb: Your capital gains should not make up more than 50 percent of your gross income.
- Loans: You invest your own money, and not finance your investments with money from third parties. Or: Your taxable yields like interest and dividends earned are higher than the interest paid for the use of third-party capital.
- Derivatives: You can only use derivatives, and particularly options, to hedge your own securities.