09.08.2024
Like all other investments, you must declare cryptocurrencies in your yearly tax return. But what exactly does the tax office require? If you know the rules, you can avoid costly mistakes. We provide a concise overview of what gains remain tax-free and what values you must declare on your tax return.
Compared with other countries, the current situation is favourable for Swiss taxpayers. In principle, our tax system is crypto-friendly, provided you know and adhere to the rules of the game. First things first: you need to state your digital assets. If cryptocurrencies are not declared in your tax return, this is considered tax evasion – and this can be expensive, including follow-up taxes and fines. But don’t worry: declaration is usually less complicated than you might think.
In Switzerland, cryptoassets such as Bitcoin, Ether and Solana are subject to wealth tax. The tax office considers your digital coins and tokens in a similar way to bank deposits, shares or cash. They are regarded as “movable capital”. What this means for you: you must list your entire holding of cryptocurrencies in the list of securities on your tax return.
The market value at the end of the tax period, i.e. generally on 31 December, is decisive for calculating the wealth tax. It doesn’t matter whether you bought the coins in January and had high book gains in the summer – if the price collapses by the end of the year, all you have to pay tax on is the lower value. Of course, the opposite is also true: if the rate has gone through the roof, your taxable assets will increase accordingly.
When cryptocurrencies are used to support a blockchain network and bring rewards in the form of Coins or tokens, we talk of staking rewards. These must also be declared as taxable income, with their value being determined at the time the staking reward is received.
The Federal Tax Administration (FTA) publishes official year-end rates for the most common cryptocurrencies in its price list (ICTax). This makes filling out your tax return a lot easier.
If no market value can be determined at all for a very exotic coin (e.g. for completely new projects or illiquid tokens), you must declare this at least at the purchase price. A value of “zero” is only accepted by the tax office if the token has demonstrably become worthless.
While wealth tax is relatively simple (stock multiplied by exchange rate), most questions arise with regard to income tax. Here, two categories must be strictly separated: capital gains and income.
This is what makes Switzerland so attractive to crypto investors. Capital gains from the sale of private assets are tax-free.
For example, you buy a bitcoin for CHF 40,000 in March. The price rises in November and you sell this bitcoin for CHF 70,000. The gain of CHF 30,000 belongs to you in full. You don’t have to pay income tax on it. This principle applies to all currencies, regardless of whether they are Bitcoin, Ether or smaller altcoins. However, you must be classified as a private investor and not as a commercial trader (more on this later).
It’s important to remember that losses are also a private matter. If you incur a loss of CHF 10,000 with the Bitcoin mentioned above instead of a profit, you cannot deduct this loss from your taxable income.
Unlike price gains, income from crypto activities in which new coins or tokens flow to you is subject to income tax. They are comparable to interest on a savings account or dividends on shares. This income is comparable to interest on a savings account or dividends on shares and is subject to income tax.
Taxable income includes:
You have 32 Ether and use staking. Spread over the year, you receive a total of 1.5 Ether as a reward. The value of these 1.5 Ether at the time of payment adds up to CHF 3,500. You must therefore enter CHF 3,500 in your tax return as “Income from securities”. They increase your taxable income, just like your salary.
Tax exemption on capital gains has one important limitation: it applies only to private asset management. As soon as the tax authority classifies your activities as “commercial securities trading”, the situation changes dramatically.
In this case, your capital gains will be taxed as income from self-employment. This means that the gains incur not only income tax, but also social security contributions (OASI/DI/EO). This can massively increase the tax burden.
The distinction is not always black and white. The tax authorities review each case individually. However, in order to create legal certainty, the FTA has defined five criteria in Circular No. 36 (the so-called “safe haven rules”). If you meet all these criteria, you are certain to be considered as a private investor:
Retention period: you hold the securities (coins) for at least six months before selling them.
Even if you violate one or more of these criteria (e.g. higher volume or short-term trading), you will not automatically be classified as a commercial trader. The tax administration will take a look at the overall picture. However, those who systematically trade with debt capital and high frequency in order to achieve regular profits are skating on thin ice.
Not every active investor is a professional trader. Trading securities commercially is the exception, not the rule. It only becomes tax-critical if there is systematic, frequent trading with a clear acquisition intention. The overall picture of the activities is crucial.
The area of decentralized finance (DeFi) is complex. If you enter pairs of tokens into a liquidity pool, you will often receive “liquidity provider tokens” (LP tokens) back. For tax purposes, this can be seen as a sale of the original coins, which can have tax consequences. In addition, the income from these pools (rewards) is taxable income. Here, correct documentation is essential.
Digital works of art or collectibles on the blockchain are also assets. Valuation is often difficult because NFTs are illiquid. If there is no official market value, the purchase price usually applies. If you have purchased an NFT for CHF 500 and it is theoretically worth CHF 50,000 today, but you have not sold it, the purchase price as an asset often remains decisive until a sale takes place or a clear market value is established. Caution: if you create and sell NFTs yourself (Creator), this is almost always commercial income.
A nightmare, but relevant for tax purposes: if you lose access to your wallet (key lost), you effectively no longer have the assets. However, you can only claim this loss for tax purposes if you can prove that access is irretrievably lost. A mere claim is usually not enough for the tax office.
Fear of filing your tax return often outweighs the effort. With the right preparation, paying tax on cryptocurrencies in Switzerland is easy to do.
Many international crypto exchanges now offer tax reports. However, these are often not perfectly tailored to Swiss tax law. This report is generally accepted as an annex by most cantonal tax offices.
With the crypto solution from PostFinance, you can invest in Bitcoin and other cryptocurrencies more easily than ever before – directly in e-finance or in the PostFinance App. The tax benefits for you: thanks to the clear asset statement at the end of the year, you can transfer the values conveniently to your tax return. No complicated Excel lists, no searching for rates.
Cryptocurrencies are here to stay – and that includes on your tax return. The rules for 2026 are more clearly defined than in the early years. As a general rule, transparency is the best protection against trouble. Declare your holdings of assets and your income. In return, enjoy the privilege of tax-free capital gains, which makes Switzerland so attractive internationally.
In complex situations, especially if you are dealing with large amounts of money, are staking on a large scale or have uncertainties with regard to commercial trading or other issues, it is worth going to a specialized tax advisor. After all, when it comes to taxes, it’s important to know what matters.
This article is for information purposes only and does not constitute tax or investment advice. Tax laws and the practices of the authorities may change and vary from canton to canton. PostFinance does not guarantee the accuracy and completeness of the information provided. Cryptocurrencies are volatile; the risk lies solely with investors.
