Taxation on stocks?

[anna]

Hello, i cant figure out how stocks are taxed in CH. The internet is giving vague answers. I am Danish but with swiss citizenship, i’m considering a move to canton Neuchatel. How are stocks taxed?

In denmark its 42%..

Thank you

 

[ellen14]

@anna There are no taxes on capital gains, if you mean that?

 

[wolf7]

@anna Vested stocks as part of your company compensation package are taxed like normal income.
Capital gains however are not taxable.

 

[onewayjesus]

@anna 0.

Use IBKR and save additionally on fees.

Create a nice portoflio and keep investing

Enjoy

 

[wendysanderlin]

@anna No tax on capital gains, but it counts as fortune so you declare it as such and it's taxed on the value (very tiny compared to income tax).

Dividends are taxed though, regardless whether they are accumulating or distributing.

 

[tobiahjude99]

@anna 42% is straight up robbery holy shit

 

[paulnorthuk]

@anna Welcome to tax heaven.

Just be careful not to be classified as a professional stock speculator. Read about the five conditions

 

[meshak2]

@paulnorthuk If dividends are taxed then it is not really tax heaven....

 

[paulnorthuk]

@meshak2 You can make a capital gain of 50,000 and sell without paying any tax. I think that most other governments in the world impose a tax in this situation.

For example, in France you will pay 9,500. America will pay 7,500 and in Germany 12500.

Note: The numbers are just examples. But it explains why my friends in these countries consider me residing in a tax paradise...

 

[mmend]

@anna NIL

 

[samuel93]

@anna Search for mustachian posts about tax on dividends/stocks in Switzerland, or thepoorswiss on the same subject. They explain well all the details. The big picture is as other people mentioned in comments, no tax on capital gains if you are not a professional investor, and tax on dividends depending on their source.

 

[empta]

@anna 0% on capital gain, however dividend are added to your work income and taxed as such. Moreover, we have one of the highest wealth taxes of the world, but it varies a lot depending on the Canton (0.02% in OW up to 0.79% in BS).

 

[lifethatwins]

@anna All the advice I am seeing here is only true with a caveat. Yes, there is no capital gains tax for individuals. But if you trade fairly actively it’s easy to fall under “gewerbsmässigem Wertschriftenhandel,” which means all you pay income tax and social contributions on all of your gains.

https://www.taxinfo.sv.fin.be.ch/taxinfo/display/taxinfo/Gewerbsmässiger+Wertschriftenhandel

 

[mtol117]

@anna "how are stocks taxed" doesn't even mean anything. capital gains? dividends and interest payments? wealth tax? what are you looking for?

 

[anna]

@mtol117 Sorry, i mean both capital gains and dividens.

 

[mtol117]

@anna capital gains are not taxed unless you qualify as a professional investor

wealth tax is still due (% depending on the Canton)

dividends are taxed the same as any other income

 

[paulnorthuk]

@mtol117 just to add for Diviends 35% will be deducted upon receipt. Then, after calculating the income tax, the remainder is returned