Bitcoin as other digital currencies Switzerland, like other non-precisely western European countries Cyprus, Estonia, Malta and Slovenican be considered tax havens where, for digital currencies (cryptocurrencies): capital gains will not be taxed in 2024.
Generally, capital gains are not taxed in Switzerland.
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Specifically, in Switzerland, capital gains on cryptocurrencies, as of March 1 of this year, will in fact continue not to be taxed, in case one makes “basic” use of them, the so-called buying and selling of these assets.
Taxation in Europe – Considering that in Europe – again in the crypto sector -, the tax rate among different countries can vary from 0% to 52%, with an average rate of 19%. The Old Continent of Western Europe has a strong disparity between different national tax regimes.
An example? In Germany the rate is up to 50.5%, in Denmark up to 52.06%; while in Italy the flat rate is 26% (with exemption for capital gains of less than 2,000 euros) and in France 30% (exemption if the total amount of taxable sales is less than 305 euros).
l focus on Switzerland – But back to the federal government, for which a small clarification is in order. Namely, that the tax exemption applies to individuals in the case of “buying and selling of payment tokens,” which is “assimilated to transactions with traditional means of payment (currencies),” as the Federal Tax Administration (FTA) explains. So “in the context of the private wealth of individuals, gains and losses from such transactions represent tax-exempt capital gains or non-deductible capital losses.”
There are two scenarios in which cryptocurrencies are also taxed. The first is related to assets, here taxation is applied to “capital gains from cryptocurrencies if they are used as a means of payment.” This tax varies for each canton, “between 0.3 and 1%.”
Secondly, capital gains derived from cryptocurrencies may be subject to income tax (at the federal, cantonal and municipal levels), up to 11.5%, “if you are staking, mining or airdropping cryptocurrencies, if you generate earnings in cryptocurrencies (…) or if you receive your salary in the form of cryptocurrencies.”
