What works in Switzerland

Tactical asset allocation after tax in Switzerland: the rules of the Private investor, in plain words with sources, and what they cost 107 strategies over 2006 to 2026.

Version: 2.1
Published: 8 October 2026
Rules last checked: 22 October 2026

Private investor account

No tax on gains; for a switcher, the stamp duty is the main cost.

Tax cost a year (median): 1.5 pts
Median strategy, before / after tax: 6.7% / 5.2%
S&P 500 held, after tax: 8.0%
60/40 after tax (worst fall): 5.3% (-30%)

36 of 107 strategies beat a 60/40 after tax in this account with a smaller worst fall; 16 beat the S&P 500 held throughout. Returns a year, in CHF.

The rules

Private investors pay no tax on capital gains, federal or cantonal.
Dividends and interest are taxed as income, including the reinvested income of accumulating funds: 25.86% at the margin for a single person in the city of Zurich with CHF 100,000 of taxable income (2026).
Wealth tax: about 0.107% of the account value a year (Zurich, total net wealth CHF 100,000 to 322,000).
Stamp duty of 0.15% on every buy and every sell of foreign ETFs through a Swiss broker. A foreign broker does not charge it, which cuts the cost from 1.5 to 0.7 points a year.
US ETFs can be bought execution-only; the 15% US withholding under the treaty is credited with form DA-1.
The safe harbour against being classed as a professional trader needs holdings of at least 6 months. 104 of the 107 strategies sell positions sooner, so the tax office would decide case by case (next section).

Confidence in these rules: high. Checked 22 October 2026. Sources: Fedlex SR 642.11 DBG (federal direct tax act): art. 16 para 3, 18, 20 para 1 lit. e, 31, 36; Fedlex SR 642.14 StHG (tax harmonisation act): art. 7 para 4 lit. b; Fedlex SR 641.10 StG (stamp duties act): art. 13, 14, 16, 17.

Warning scenario, not an account type

If you are classed as a professional trader

The downside if the tax office sees your switching as a business.

Tax cost a year (median): 3.3 pts
Median strategy, before / after tax: 6.7% / 3.6%
S&P 500 held, after tax: 6.5%
60/40 after tax (worst fall): 4.2% (-30%)

25 of 107 strategies beat a 60/40 after tax in this account with a smaller worst fall; 7 beat the S&P 500 held throughout. Returns a year, in CHF.

The rules

If the tax office classes you as a professional securities dealer, gains become self-employment income: income tax plus about 10% social contributions (AHV/IV/EO), about 33% at the margin for the same investor.
Losses then become deductible and carry forward 7 years.
The safe harbour (ESTV circular 36): holdings of at least 6 months, yearly volume at most 5 times the portfolio, gains below half of net income, no borrowing, derivatives only for hedging. Missing it does not decide the case; all circumstances count.
This is a risk scenario for the same account, not an account you choose.

Confidence in these rules: medium. Checked 22 October 2026. Sources: ESTV Kreisschreiben Nr. 36: Gewerbsmaessiger Wertschriftenhandel (27 July 2012); Fedlex SR 642.11 DBG: art. 18 para 2, art. 27, art. 31 para 1; Informationsstelle AHV/IV: Merkblatt 2.02 Beitraege der Selbstaendigerwerbenden (Stand 1. Januar 2026).

Every strategy, account by account

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How this was computed, the limits, and every other country are in the full study.