Good question, I’ve looked into this too. Under Swiss law (FIDLEG/LSFin), you’re generally classified as a retail client by default unless you opt to be treated as a professional. There are a few paths to professional client status: (1) certain institutional categories (pension funds, banks, etc.), (2) high-net-worth individuals with >CHF 2M in financial assets (or >CHF 500k plus experience/knowledge), who opt in, or (3) if FINMA considers your activity to be effectively professional.
That last one is where trading behavior matters: very high frequency, short-term trading, leveraged structures, acting for third parties, or operating in a way resembling a trading business. A 6-month holding period is not a legal requirement, nor is primary income, directly, but if trading or investing becomes your primary source of income (for example, you no longer have employment income and live off trading profits), that could contribute to being seen as effectively acting in a professional capacity. So it’s about behavior and economic reality, not just portfolio size or holding periods.
But your point is right, it’s definitely something to monitor if one’s strategy or profile were to change.
Capital gains in Poland are taxed at 19%, correct me if I am wrong. If you move to Switzerland, you would first need to obtain a Permit B to become a Swiss tax resident. Once resident, you can essentially build or transfer your own ‘retirement account’ simply by investing as a private investor, with capital gains tax-free and low wealth tax.
To obtain Permit B, you either need to be employed, self-employed, or demonstrate sufficient financial means to support yourself in Switzerland, which is not always easy. You’ll also need to show a clean legal record (no criminal history).
I’ll be sharing more on how to structure this soon, it’s a very powerful setup if done right. 😉
You are very right. Imho, for US or EU investors, settling in Singapore might feel easier since English is quite used, while daily life in HK I think can be more challenging if you don’t speak Cantonese 😁.
By contrast, Switzerland offers a lot of opportunity on this front, with four official languages, a very international environment, and an ecosystem built for cross-border investors. 🚀
Thanks haha, not just clickbait, I actually ran the numbers based on what I was paying back in Spain. The compounding impact of saving on taxes can be surprisingly high.
I live in CHF too, aren't you afraid to be classified as a professionnal investor if you dont keep your holdongs 6 months as an example?
Good question, I’ve looked into this too. Under Swiss law (FIDLEG/LSFin), you’re generally classified as a retail client by default unless you opt to be treated as a professional. There are a few paths to professional client status: (1) certain institutional categories (pension funds, banks, etc.), (2) high-net-worth individuals with >CHF 2M in financial assets (or >CHF 500k plus experience/knowledge), who opt in, or (3) if FINMA considers your activity to be effectively professional.
That last one is where trading behavior matters: very high frequency, short-term trading, leveraged structures, acting for third parties, or operating in a way resembling a trading business. A 6-month holding period is not a legal requirement, nor is primary income, directly, but if trading or investing becomes your primary source of income (for example, you no longer have employment income and live off trading profits), that could contribute to being seen as effectively acting in a professional capacity. So it’s about behavior and economic reality, not just portfolio size or holding periods.
But your point is right, it’s definitely something to monitor if one’s strategy or profile were to change.
I live in Poland, and I'm an investor. I suppose the best thing is to live here, right, if I were to have a retirement account?
Capital gains in Poland are taxed at 19%, correct me if I am wrong. If you move to Switzerland, you would first need to obtain a Permit B to become a Swiss tax resident. Once resident, you can essentially build or transfer your own ‘retirement account’ simply by investing as a private investor, with capital gains tax-free and low wealth tax.
To obtain Permit B, you either need to be employed, self-employed, or demonstrate sufficient financial means to support yourself in Switzerland, which is not always easy. You’ll also need to show a clean legal record (no criminal history).
I’ll be sharing more on how to structure this soon, it’s a very powerful setup if done right. 😉
I think Singapore and HK also charge little or no tax on capital gains.
You are very right. Imho, for US or EU investors, settling in Singapore might feel easier since English is quite used, while daily life in HK I think can be more challenging if you don’t speak Cantonese 😁.
By contrast, Switzerland offers a lot of opportunity on this front, with four official languages, a very international environment, and an ecosystem built for cross-border investors. 🚀
I like the title of the post 😁
Thanks haha, not just clickbait, I actually ran the numbers based on what I was paying back in Spain. The compounding impact of saving on taxes can be surprisingly high.