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ETF taxes Switzerland: The ultimate tax guide 2025
ETFs are ideal for stress-free, long-term wealth accumulation. But when it comes to Taxes it quickly gets complicated. Withholding tax, tax at source, wealth tax: what actually applies to you? Which of your ETF income is taxable? And how can you save tax legally?
In this article you will find the most frequently asked tax questions about ETFs in Switzerland: Simply explained and with practical tips. Whether you're just starting out or want to optimise your existing portfolio, you'll get quick answers here so that you can keep more of your returns.
Table of contents
ETF taxes Switzerland: The most important facts summarised
Taxes are not much fun. But everyone who invests money has to deal with it sooner or later.
As an ETF investor in Switzerland, you definitely need to know the following:
- In the context of ETFs, the Income tax, wealth tax, withholding tax, foreign withholding tax and Stamp duty relevant.
- In Switzerland, you pay tax as a private investor only dividends and interest, no capital gains.
- A Growth strategy can be more worthwhile from a tax perspective than a dividend strategy.
- Your ETFs count towards your Assets and must be in your private income tax return be declared.
- The Stamp duty from 0.075% to 0.15% can be avoided by using foreign online brokers such as DEGIRO or Interactive Brokers utilises.
- The Withholding tax paid you get back via your tax return.
These taxes are important for your ETF investments:
The good thing? As Swiss private investors, we have some tax advantages:
- There are no capital gains tax, such as in many other countries (e.g. Germany). You only pay tax on dividends and interest. Capital gains (e.g. ETF bought at CHF 100 and sold at CHF 110) are tax-free.
- Depending on the canton, we benefit from a global comparison, low income tax rates.
Your ETF tax quickfinder
Looking for something specific? Simply click on your individual situation and find what you're looking for in seconds:
- "I have ETFs that pay out dividends" → Dividend taxation for ETFs: how it works
- "I am using a foreign broker" → Stamp duty on ETF trading: to save or not to save?
- "I am looking for tax-optimised ETFs" → ETF domiciles: The deciding factor
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The five ETF-relevant tax types at a glance
Below we take a look at the 5 relevant tax types for your ETF investments:
| Tax type | Subject | Height | Raised by | Avoidable? | Reclaimable? | Special feature |
|---|---|---|---|---|---|---|
| Income tax | All investors | Depending on the canton and income level, the average top tax rate is 32.75% | Confederation / Canton / Municipality | No. But it can be optimised by changing your place of residence. | No | – |
| Withholding tax | All investors | 35% | Bank / Broker | No | Yes | – |
| Property tax | All investors | Depending on assets and canton (look up all the details here) | Canton / Municipality | No | No | There are allowances (different for each canton) |
| Foreign withholding tax | All investors who own ETFs with fund domicile outside CH | depending on the fund domicile of the ETF | ETF issuer | Yes | Yes | Double taxation agreements between countries regulate when investors have to pay withholding tax |
| Stamp duty | All investors who use a CH Online Broker | 0.075% on Swiss ETFs and 0.15% on foreign ETFs | Covenant | Yes | No | Can be avoided by choosing a foreign online broker |
ℹ️ No capital gains tax in Switzerland:
Compared to Germany, for example, there is no capital gains tax on ETF investments in Switzerland. Taxes are only payable on interest and dividends.
If you sell your ETFs, there is also no capital gains tax if you are considered a private investor. This is the case as long as you ...
- your investments last at least 6 monthsbefore you sell them.
- you do not trade too much (the sum of all purchases/sales per calendar year is no more than five times what you had in securities and account balances at the beginning of the year).
- you do not live off your profits and you don't need the money from the sales to make a living.
- you do not make your investments with Debt capital purchased have (credit).
- you No risky financial products (such as options), except to hedge your existing investments.
Accumulating ETF taxes Switzerland: Dividend taxation for ETFs
Now that you know the most important types of tax that affect you as an ETF investor, let's take a closer look at the topic of dividend taxation.
As a reminder, a dividend is part of the profit that a company distributes to you as a shareholder.
| Distributing ETFs | Accumulating ETFs | |
|---|---|---|
| Description of the | ETFs that pay out profits (e.g. dividends) on a regular basis | Profits are automatically reinvested in the ETF and thus increase your invested amount |
| Advantages |
|
|
| Disadvantages |
|
|
| Ideal when ... | you wish to receive regular payments (e.g. on retirement) | you pursue long-term wealth accumulation with a focus on growth |
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Progression table for income tax
ℹ️ Marginal tax rate: What does this mean for you?
The Marginal tax rate shows how much Tax you pay on every additional franc earned have to pay. The more you earn, the higher this percentage can be. Your income is taxed in instalments: the first instalments less, the last very high. This is called tax progression. For example: In the canton of Zurich, the marginal tax rate for a single person (35 years old, no children) with an income of CHF 500,000 and no assets is 41.4%.
The more you earn, the higher your effective tax rate in Switzerland. Dividends from ETFs count as income and therefore increase your taxable income. The following table uses the example of a single person in the canton of Zurich with CHF 50,000 in assets to show you how the marginal tax rate and the tax burden develop with increasing income for CHF 1,000 in dividends.
| Total income | Marginal tax rate without dividend | Marginal tax rate with dividend | Tax burden without dividend | Tax burden with dividend | Tax on CHF 1,000 dividend |
|---|---|---|---|---|---|
| CHF 25,000 | 9.5% | 9.5% | CHF 721.- | CHF 806.- | CHF 85.- |
| CHF 50,000 | 13.7% | 14.7% | CHF 3'311.- | CHF 3'436.- | CHF 125.- |
| CHF 100,000 | 26.1% | 26.1% | CHF 12'122.- | CHF 12'357.- | CHF 235.- |
| CHF 250,000 | 39.3% | 39.2% | CHF 56'970.- | CHF 57'324.- | CHF 264.- |
| CHF 500,000 | 41.4% | 41.3% | CHF 150'419.- | CHF 150'793.- | CHF 374.- |
Swiss withholding tax ETF: reclaim made easy
Withholding tax is payable on dividends, interest and other distributions that you receive via ETFs or shares. The state introduced this tax to prevent tax evasion. This is why it is also known as security tax. You get it back at 100% via your tax return.
This is how it works:
- Your ETF pays you dividends, let's say CHF 10 as an example.
- Your bank will only pay you 65% of this 10, i.e. 6.50. The remaining 35% or 3.50.- will be paid to the tax authorities in the form of withholding tax.
- You declare the dividend on your tax return.
- Your canton will then pay you back the withholding tax of 3.50 (or deduct this 3.50 from the taxes you owe for the year).
ℹ️ Common mistakes when reclaiming withholding tax
- You can only reclaim withholding tax on ETFs that are registered in the Switzerland domiciled are. So pay attention to this when selecting your ETFs, otherwise your return will be reduced by the tax! However, a foreign domicile often makes sense for international investments.
- Do your tax return by hand: Use the eTax statement from your Brokerswhere the data is automatically entered in a report. You can simply upload this to the online tax return.
- Only indicate dividends from distributing ETFs: For withholding tax purposes, it makes no difference whether you distributing or accumulating ETFs owns. You have to declare everything in your tax return anyway.
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Foreign withholding tax: the hidden yield guzzler
Depending on the domicile of your ETF, i.e. the country in which the ETF is domiciled, higher or lower withholding tax rates are due. As an investor, you will not initially notice the withholding tax until it is automatically deducted from your distributions. For larger investment sums, it may be worth taking a close look at the fund domicile to avoid an unnecessarily large withholding tax bill.
Withholding tax by country
The most important ETF fund domiciles for Swiss investors are:
| Country | Withholding tax |
|---|---|
| USA | 30% |
| Ireland | 25% |
| Luxembourg | 15% |
You can recognise the fund domicile of an ETF by its ISIN. For example, the iShares MSCI World UCITS ETF has the ISIN "IE00B0M62Q58" - the two letters "IE" at the beginning show you that this ETF is domiciled in Ireland.
The fact that Ireland is often the fund domicile is due to the fact that Ireland has a favourable double taxation agreement with the USA: an ETF domiciled in Ireland only has to pay 15% withholding tax to the USA instead of the regular 30%.
And for you as a Swiss citizen, Switzerland has a double taxation agreement with Ireland, which means that dividends paid out from an Irish ETF are not subject to withholding tax again.
Withholding tax explained using an example
To explain it to you in simple terms: Imagine you buy the Ireland-based iShares S&P 500 UCITS ETF worth CHF 100 - the ETF contains only US equities. Your dividend is CHF 10. This means that CHF 15% withholding tax is due on this CHF 10 (USA → Ireland). In Ireland, only CHF 8.50 of the dividend is received. As Ireland and Switzerland have a double taxation agreement, this dividend will not be taxed again and you will be paid CHF 8.50.
Loss of returns due to withholding tax
Withholding tax can really cost you returns over a long period of time. Let's assume you invest CHF 10,000 in an ETF domiciled in Ireland and CHF 10,000 in an ETF domiciled in Switzerland, each with a return of 6%. Then you have after one year:
| ETF with Ireland as domicile | ETF with Switzerland as domicile | |
|---|---|---|
| Initial capital | 10'000.- | 10'000.- |
| Return on investment | 6% | 6% |
| Dividend | 600.- | 600.- |
| 15% Withholding tax | 90.- | – |
| Net | 510.- | 600.- |
So with the Ireland-based ETF you have reduced your return from 6% to 5.1%.
Important: It doesn't always make sense to simply look at the domicile (Ireland, or whatever), but it is a crucial step in choosing an ETF
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"Intelligent people learn from the mistakes of others".
We have compiled our top selection for you from all our tests and experience reports:
ETF domiciles: The deciding factor
The domicile of an ETF, i.e. the country in which the ETF is registered, has Massive impact on your return after taxes. Because: Depending on the domicile varying amounts of withholding tax (as we have already seen above), and the chances of recovery also differ significantly.
ETF domiciles & taxes (CH)
| Domicile | Special features | USA-sourc. | CH-Clearing.st. | Ideal for ... | Example ETF |
|---|---|---|---|---|---|
| 🇮🇪 Ireland | 15 % thanks to agreement, no additional tax | 15 % (non-reclaimable) | No | World ETFs with US exposure | iShares MSCI World |
| 🇱🇺 Luxembourg | No deduction in LU, but often 30 % USA | 30 % (ETF pays) | No | Topics & Europe | Amundi MSCI World |
| 🇨🇭 Switzerland (US shares) | Double taxation: USA + CH | 30 % (partly ETF) | 35 % (recoverable) | CH-ETF with US component | UBS S&P 500 CHF Hedged (CH)
|
| 🇨🇭 Switzerland (CH shares) | CH tax only, no US reference | None | 35 % (recoverable) | Home market Switzerland | UBS SMI ETF |
| 🇺🇸 USA | Reclaim only with W-8BEN & US-Broker | 15-30 % (non-reclaimable) | No | For professionals only | Vanguard S&P 500 |
ℹ️ Why Irish ETFs are often the best choice for foreign investments
- Only 15% withholding tax on US dividends (instead of 30%)
- No additional withholding tax in Switzerland
- Large selection of favourable and liquid ETFs
Stamp duty on ETF trading: to save or not to save?
Another tax you need to bear in mind when buying and selling ETFs and shares in Switzerland is the stamp duty of 0.075% on Swiss securities and 0.15% on foreign securities.
For this reason, many investors in Switzerland use foreign brokers such as DEGIRO or Interactive Brokers to avoid this tax. The disadvantage: Foreign providers do not provide you with an eTax statement (eTax), which simplifies your tax return in Switzerland.
From what amount is it worth switching to a foreign provider?
Let's assume you invest CHF 20,000 once, which you have in your account, and then CHF 500 per month on an ongoing basis in the savings plan. After one year, you will have invested a total of CHF 26,000, on which you will have to pay stamp duty of 0.075% and 0.15% respectively with a Swiss broker such as SAXO or yuh. For example, let's assume that you run a global portfolio with 75% MSCI World and 25% Emerging Markets. In other words, you buy (virtually) no domestic securities, only foreign ones. Therefore, 0.15% will be added to your CHF 26,000. A total of CHF 39 for a whole year - still manageable.
If we turn up the volume a little and you have a monthly savings plan of CHF 1,000 in addition to your initial investment of CHF 20,000, you will have paid CHF 48 in stamp duty at the end of the year.
Tip: If the stamp duty charges exceed CHF 100 per year, it may be worth switching to a foreign provider. If you invest several thousand francs per month, it may even be worth splitting your investment between a Swiss broker and a foreign broker. With the help of our clear online broker comparison, you can quickly find the right broker for you!
Most tax-efficient brokers outside Switzerland
In our eyes, the most tax-efficient online brokers for the Swiss are:
- DEGIRO (Click here for the test report)
- Interactive Brokers
There is no stamp duty or custody fees for either and both offer attractive trading fees. Disadvantages? No tax statements for Switzerland and no Swiss deposit protection.
Wealth tax and ETFs: cantonal differences
ETFs are subject to wealth tax in Switzerland as they are part of your taxable net assets, just like your bank deposits or real estate. The tax authorities value your entire assets, including your ETF custody account. The market value of your ETFs according to the FTA price list is decisive for this. The total results in taxable assets on which your canton levies wealth tax.
How high the wealth tax is per canton, eyou can find out here.
Important facts on wealth tax for ETFs
- It is only really relevant when you are really wealthy (millionaire)
- It is incurred regardless of income (even for accumulating ETFs without distribution).
- The allowances vary from canton to canton - everything above this is taxed (it is best to check the applicable allowances with your canton).
- The tax rates vary greatly depending on the canton and municipality (for example, the rate for one million in assets is 0.06% in Zug and 0.68% in Neuchâtel).
- ETF domicile or your strategy (growth vs. distributing) has no influence here: only the portfolio value counts.
Our financial tips for 2025
"Intelligent people learn from the mistakes of others".
We have compiled our top selection for you from all our tests and experience reports:
The 5 most important tax strategies for ETF investors
Not every investment strategy is equally efficient from a tax perspective. In the following overview, you will find a comparison of five popular ETF strategies, including their tax advantages and disadvantages, their complexity and for whom they are particularly suitable.
| Strategy | Principle | Tax savings | Complexity | Who is it suitable for? |
|---|---|---|---|---|
| Buy & Hold strategy | Long-term holding without frequent reallocations | High (tax-favourable titles selectable) | Low | Beginners, long-term investors, people who want to spend little time with their portfolio |
| Dividend strategy | Focus on ETFs with high payouts (dividends) | Low (dividends are taxable) | Low | Retired persons or anyone who wants regular income |
| Core satellite | Solid core (e.g. MSCI World) as buy & hold with speculative additions | Medium (depending on the satellite ETFs) | Medium | Advanced investors with a balanced risk appetite and a desire to take a closer look at their portfolio |
| Value strategy | Focus on undervalued stocks with above-market returns | Low (often higher dividends → taxable) | Medium | Advanced investors with a balanced risk appetite and a desire to familiarise themselves in detail with shares and companies |
| Growth strategy | Investment in fast-growing companies | High (low distribution, focus on capital gains) | Medium | Investors with a long-term investment horizon |
So if you ...
don't have an ETF portfolio yet and want to get off to an uncomplicated start, then: Buy & Hold (with tax-efficient ETFs)
want to build up a cushion for retirement as simply as possible, then: Buy & Hold
If you have the time and inclination to spend more time with your ETFs and want to cover undervalued stocks in a targeted manner, then: Value strategy (e.g. with value ETFs - but usually with a higher dividend ratio)
want to pay the minimum amount of tax on your investments, then: Buy & Hold (accumulating) or Growth strategy
want to have regular distributions, then: Dividend strategy
Buy & Hold is too boring for you, then: Core satellite
ETF tax return step by step with sample examples
Declaring ETFs in your tax return: How to enter your ETFs correctly
As you can see from the screenshot, your canton's online tax tool makes your work really easy: all you have to do is enter the ISIN or Security number of your ETF plus Purchase and sale date and the system will do the rest automatically.
🔧 This is how it works step by step:
- ISIN or security number + Date of purchase/sale enter per title
- Automatic recording: The tool loads all distributions, dividends and withholding taxes for the relevant period
- Automatic listing of all tax-relevant income - without having to enter each individual amount manually
The system knows exactly when which distributions have taken place and converts these pro rata to your holding period. In the case of accumulating ETFs, the notional distributions are automatically taken into account for withholding tax purposes.
Zero effort: Forget the hassle of collecting and entering individual dividend payments - the tool does everything automatically based on the holding period.
🕒 Status: June 2025 - Works with most common ETFswhich are Swiss broker be traded.
Our financial tips for 2025
"Intelligent people learn from the mistakes of others".
We have compiled our top selection for you from all our tests and experience reports:
Conclusion: How to proceed with your ETF tax strategy
ETF investments not only offer you a simple and cost-effective way to build up assets over the long term, but also Clear tax advantagesif you pay attention to a few key points.
Investors in Switzerland benefit from:
- 0 - Capital gains tax as a private investor
- Reimbursement of withholding tax for CH-domiciled ETFs
- Low stamp duty for CH-domiciled ETFs
- Tax-favoured ETF domiciles such as Ireland
- Savings potential through foreign brokers (no stamp duty)
Small adjustments in particular, such as the choice of ETF domicile, can bring you thousands of francs more net return over the years.
Check your portfolio now and pay particular attention to these 2 points:
- the fund domicile of your ETFs
- and whether you are reclaiming the withholding tax correctly.
Don't have an ETF portfolio yet? Then start now with a tax-optimised broker and make sure you have proper documentation for your tax return. And remember: you don't have to be a tax professional to protect your returns!
Tip: If you would like to build your portfolio step-by-step with me, take a look at the FinanceTimetable take a closer look!
FAQ: The most frequently asked tax questions about ETFs
1. do I have to declare ETFs in my tax return?
Yes, absolutely. ETFs are included in your taxable income and must be declared in your personal income tax return, including all distributions (dividends/interest). Accumulating ETFs are also included in the declaration, even though they do not pay out dividends.
2. do I have to pay tax on capital gains from ETFs?
There is no capital gains tax for private investors in Switzerland. This means that profits from the sale of ETFs remain tax-free, if you are considered a private investor. Among other things, you must not invest with borrowed capital, you must hold your ETFs for longer than 6 months and you must not have a high trading frequency.
3. what is the difference between withholding tax and withholding tax for ETFs?
The Withholding tax (35 %) is levied on Swiss dividends. You get it back via your tax return.
The Withholding tax is payable on foreign dividends (e.g. 15 % on US shares in an Irish ETF). This can be partially or fully reclaimed via double taxation agreements, but often not automatically.
4. are accumulating ETFs more favourable from a tax perspective?
Not necessarily. Even with accumulating ETFs you must the reinstalled Tax incomeeven though you don't get them paid out. However, they often offer a better compound interest effect and are therefore still more attractive in the long term.
5. are there ideal ETF brokers for Switzerland from a tax perspective?
Yes, brokers like DEGIRO or Interactive Brokers are particularly tax-favourable, as:
- no Swiss stamp duty is payable and
- they offer ETFs with a tax-favoured domicile (e.g. Ireland).
However, taxes should only be one of many selection criteria in the Broker selection be
6 What happens if I do not declare my ETFs?
If you do not declare your ETFs correctly, you risk Problems with the tax authorities and possibly a penalty payment. You are also giving away money, as you will not receive a refund of withholding tax, for example. So transparency pays off twice over!
7. how do I find out how much tax I actually have to pay on my ETFs?
You can do this via your tax return and your broker's tools (e.g. annual statements). The exact tax burden depends on your canton, your income and your ETF portfolio.
About the author
Eric is the founder of Schwiizerfranke.com and certified IAF wealth advisor. Since 2019, he has been helping Swiss citizens to organise their finances comprehensibly, independently and efficiently.
📌 Note: This article is for information purposes only and does not constitute personalised investment advice.