The crypto market is very dynamic and poses particular challenges in the area of taxation. In Switzerland, one of the most crypto-friendly countries in the world, there are clear rules on how crypto assets are taxed. This blog article provides a comprehensive overview of the most important aspects of crypto taxation in Switzerland in order to avoid tax pitfalls.
Cryptocurrencies as assets : Cryptocurrencies such as Bitcoin and Ethereum are considered assets and must be declared in the annual tax return. Wealth tax : The value of crypto assets is determined at the end of the tax year and is subject to wealth tax. This is based on the market value of the cryptocurrencies. Capital gains : Profits from the sale of cryptocurrencies are generally tax-free for private individuals if no professional trading is involved.
Income tax : Income from mining, staking or other income from cryptocurrencies is subject to income tax and must be declared accordingly.
Professional trading : In the case of professional trading, profits from cryptocurrencies are subject to tax. The criteria for this include the frequency of transactions and the scale of the activities.
When dealing with cryptocurrencies in Switzerland, there are some important aspects to consider in order to fulfill tax obligations correctly. Here is a brief summary before we go into detail:. Declaration in the tax return: Cryptocurrencies are considered private assets and must be declared in the tax return. Determining the market value: The market value of cryptocurrencies at the end of the tax year is decisive for wealth tax purposes. This value is determined by the reference value published by the Federal Tax Administration ESTV or the market value of a recognized stock exchange.
