When you hold crypto in Switzerland, the government doesn’t treat it like cash—it treats it like wealth, a taxable asset that accumulates value over time. That’s the core difference between Switzerland and places like the U.S. or Germany. If your crypto portfolio grows, even if you never sell, you might owe wealth tax, an annual tax on the total value of your assets, including crypto. This isn’t a one-time fee. It’s yearly. And it’s calculated by your local canton, not the federal government.
Switzerland has 26 cantons, and each one sets its own wealth tax rates, ranging from near zero in places like Zug to over 1% in Zurich. Most people don’t realize this: if you hold $100,000 in Bitcoin and your canton charges 0.3%, you owe $300 a year—no matter if Bitcoin goes up or down. And yes, you have to declare every coin, NFT, and staking reward. The tax office doesn’t care if you lost money on a trade last year. They care about what’s in your wallet on December 31. Mining crypto? That’s income. Selling? Capital gains are usually tax-free if you’re a private investor, but only if you don’t trade frequently. Trade 10 times a week? You’re a professional trader—and now you pay income tax on profits.
Foreigners living in Switzerland get hit harder. If you’re not a Swiss citizen, you still pay wealth tax on your global crypto holdings. No exceptions. And if you move out? You still owe taxes for the year you left—based on your holdings as of your departure date. Many people assume Switzerland is a crypto tax haven. It’s not. It’s a tax precision machine. You get strong privacy, no VAT on crypto trades, and clear rules—but you also get annual reporting, asset declarations, and penalties for mistakes. The key is knowing your canton’s rules, keeping clean records, and never assuming your exchange sent the right data to the tax office. Below, you’ll find real cases, common traps, and what actually gets taxed—no fluff, no guesses, just what works in Switzerland in 2025.
Switzerland doesn't tax crypto profits, but it does tax your holdings each year. Learn how wealth tax works, which tokens are included, cantonal differences, and why private investors pay zero capital gains.
Continue reading...