header.search.error
Learn what investment income is taxable and how you can reclaim withholding tax, as well as other useful information for investors.
Capital gains are profits from the sale of shares, funds or bonds if they are sold at a higher price than the purchase price. If you sell securities at a profit as a private individual, these price gains are generally tax-free, provided these securities are held as private and not business assets.
Additionally, the Federal Tax Administration FTA defined criteria to examine whether a person might be classified as a professional securities trader:
If only some of these criteria are met, it cannot be assumed that the assets are managed privately. However, the final assessment lies with the tax authorities, whereby it should be noted that they are extremely unlikely to classify an individual as a securities dealer. The consequences of this classification would include:
Withholding tax is a tax levied at source by the federal government. It amounts to 35 percent of income from movable capital assets, such as interest or dividends. It applies to Swiss sources such as securities, bank accounts, etc.
This means you only receive 65 percent of the interest and dividends from your bank – the remaining 35 percent is paid directly to the Federal Tax Administration FTA. Withholding tax is primarily used to combat tax evasion, as payment of the tax means all investment income is disclosed to the tax authorities.
To avoid disadvantaging investors with this approach, as a taxpayer resident in Switzerland you can reclaim the withholding tax through their tax return. To do so, you must list any interest as income and the corresponding credit balance as assets in the list of securities on your tax return. Once this has been fully completed, you will receive the 35 percent withholding tax back from your cantonal tax authority. It will then be offset against your cantonal and municipal taxes or refunded. For taxpayers living abroad, the refund depends on whether a double taxation agreement exists.
The state also deducts the withholding tax directly from winnings from lotteries and skill-based games used for sales promotion, unless they are classified as tax-exempt by the Federal Act on Direct Federal Taxation. Pensions and benefits from insurance policies (life insurance, pillar 3) are also subject to withholding tax. This tax rate is lower (15 or 8 percent) and depends on the type of product.
UBS provides you with all the important documents you need for your tax return in Mobile Banking and E-Banking.
Select “Bank documents” in your profile; you will find all the main documents in the “Tax reporting” folder. These documents are often sufficient as proof, and you can avoid filling out the securities list in the tax return separately
We will be happy to tell you more about the various investment and savings options and find the right solution for you.
Arrange a comprehensive consultation today.
In addition to non-taxable price gains, interest income from pillar 3a and your vested benefits accounts – provided this is for your retirement – also remain untaxed.
Arrange an appointment for a nonbinding consultation, or if you have any questions, just give us a call.
Disclaimer
This publication is intended for marketing purposes only.
This material has been prepared by UBS AG or one of its affiliates (“UBS”). This material is only intended for the distribution permitted under the applicable law. It has not been prepared for the needs of a specific recipient. It is only published for information purposes and does not constitute an offer or an invitation to purchase or sell securities or associated financial instruments (“Instruments”). UBS accepts no liability (either expressly or tacitly) for the completeness or reliability of the information contained in this document, except for the information on UBS AG and its affiliates. The information should not be regarded by the recipients as a substitute for their own judgment. All the opinions contained herein may change without prior notice and contradict the opinions of other business areas of UBS due to the application of different assumptions and criteria. UBS is not obliged to keep the information up to date. UBS, its executives, employees or clients may have or have had a participation in the Instruments and may conclude transactions with them at any time. UBS may maintain or have maintained a relationship with the entities specified in this information. Neither UBS nor its affiliates, executives or employees are liable for losses resulting from the use of this information. Structured derivatives do not constitute participation in collective investment schemes. For this reason they do not require approval from the Swiss Financial Market Supervisory Authority (FINMA). As a result, investors are not entitled to the specific investor protection provided by the Swiss Collective Investment Schemes Act (CISA).
Structured products are complex and involve a high risk. The intrinsic value of the investment instruments depends not only on the performance of the underlying asset, but also on the issuer’s creditworthiness (credit risk), which can change over the duration of the product. In relation to any securities, currencies, financial instruments or other assets underlying a transaction to which this material relates, the values may fall as well as rise and past performance is not an indication of future performance. Before entering into any transaction, you should consult your own legal, supervisory, tax, financial and accounting advisors as you consider necessary. You should also make your own investment, hedging and trading decisions (including decisions regarding the suitability of this transaction) at your own discretion and based on your consultation with advisors as you consider necessary. Unless expressly agreed otherwise in writing, UBS does not act as financial advisor or fiduciary in any transaction.
UBS makes no representations or warranties with regard to any information originating from independent sources. This material may not be copied or reproduced without UBS’s prior written permission. Not for distribution in the United States or to US persons.
© UBS 1998 - 2026. All rights reserved. The key symbol and UBS are among the registered and unregistered trademarks of UBS.
UBS prohibits the forwarding of this information without the approval of UBS.
