Pay No Capital Gains on Crypto Investments?
April 2, 2025
by Brandon Ahearn, JD, LLM, CFA
Relocation Consultant at YourPlaceInEurope
YourPlaceInEurope.com
“Switzerland is crypto friendly.”
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Capital gains tax on personal investments can be a tough pill to swallow. Personal investing is typically done with after-tax money and the justification for taxing the gains on that money once again, based on performance of a company or of the market, can seen unfair. Many investors would be surprised to know that there there is a handful of countries around the world that do not tax capital gains on private investments. Switzerland is one of them. Switzerland also excludes cryptocurrency from capital gains tax, so long as the investment is a private one.
It is also considered a crypto friendly country, with numerous crypto foundations based there. Lugano, which is the largest city in Italian-speaking Switzerland, is one of the most crypto-friendly cities in the world. It has its own crypto currency, over 400 merchants in the city accept crypto for everyday items, and the City of Lugano is unique in the world for accepting crypto in an unlimited amount for city taxes and fees.
It is well known that becoming a resident of Switzerland can be challenging, but for the affluent who would like to relocate there, it is possible. When it comes to the determination of whether an investment is a private one, the cantonal (local) tax authority (which is the highest tax authority, not the federal government) considers the following:
▪ the investment holding period ▪ the frequency of transactions
▪ the source of funds ▪ the profession of the investor ▪ the intent of the investment ▪ the volume of transactions
Other private investments that are exonerated from capital gains tax are traditional investment, such as stocks, bonds, funds and precious metals.
Switzerland offers an unparalleled quality of living, right in the heart of Europe, politically neutral, with its own currency in the Swiss Franc, not a member of NATO or of EFTA or of the EU, quiet and unassuming. The country has four national languages and three main cultural divisions. The largest is the Swiss-German speaking part, followed by the French west and the canton of Ticino in the south, which is Italian speaking and is a combination of Swiss efficiency with Italian lifestyle.
Please keep in mind this information should not be considered as financial advice. Investment decisions should be based on individual research and consultation with a qualified financial professional. The value of investments can fluctuate, and past performance is not indicative of future results. Always consider your risk tolerance and financial goals before making investment decisions. US citizens have unique tax requirements which should always be reviewed with a professional.
