CRYPTO SETTLEMENTS IN SWITZERLAND

The Swiss Federal Tax Administration has given clear guidance on Swiss taxes on cryptocurrency, and this is good news for investors. For the most part, private investors will not pay capital gains tax on their crypto profits, only businesses and self-employed traders will pay capital gains tax. Therefore, for many investors in the so-called “crypto nation”, you will only pay wealth tax on your cryptocurrency, as well as potential income tax depending on your specific cryptocurrency investment.

As long as you are considered a private investor, this means that your cryptocurrency can only be subject to two taxes:

• Income tax.
• Wealth tax.
• Income tax

In some cases, you will pay income tax on your cryptocurrency if it appears that you are earning cryptocurrency.

For example, if an employee receives cryptocurrency as a salary, it is part of their taxable income. The value of the cryptocurrency in Swiss francs at the time of receipt must be specified in the payment statement. Similarly, if a self-employed person accepts bitcoins or other cryptocurrencies to provide his services, this income must also be included in the income in the amount of the equivalent in francs.

Other crypto transactions subject to income tax include:

• Crypto mining.
• Crypto rate.
• Cryptocurrency airdrops.

Although the FTA has not yet issued a guide to the various DeFi protocols, it is also possible that many DeFi activities, such as crop cultivation and liquidity mining, may be considered additional income and subject to income tax as well. Check with your accountant.

Income tax from cryptocurrencies in Switzerland

Cryptocurrency income tax rate in Switzerland

Income tax in Switzerland potentially consists of three different taxes:

• Federal income tax is the same tax rate throughout Switzerland.
• Cantonal income tax – this tax rate is set by the specific canton, so it depends on where you live.
• Municipal income tax – municipalities in Switzerland have the right to set their own municipal tax rates, although most follow the cantonal income tax rates.

Switzerland uses a progressive federal tax rate and many cantons use the same structure, although some cantons have recently introduced a flat tax rate. There are a total of 26 cantons and 2,929 municipalities. All of this means that the income tax rate on your cryptocurrency will vary greatly depending on where you live in Switzerland and how much you earn.

Due to unusual tax rules in Switzerland, there are no special tax breaks for cryptocurrency. But you can make the most of the following tax laws to pay less tax on your cryptocurrency:

• Capital gains in cryptocurrency are tax-free: If you are an individual investor, you will not pay capital gains tax on your cryptocurrency. So make sure you follow the advice for private investors to avoid unwanted tax bills!
• Federal income tax credit: Each taxpayer receives a federal income tax credit of 14,500 Swiss francs, which is taxable. Many cantons also have their own income tax benefits.
• Property Tax Credit: Each taxpayer receives an individual property tax credit that is tax-free. So, provided your total assets are below a certain value, you will not pay wealth tax. The cantons set specific tax-free allowances. Your estate tax credit will increase if you have dependents.

There are many tax-free crypto transactions in Switzerland, including:

• Buying cryptocurrency for fiat currency, for example in Swiss francs.
• Sell, trade and spend cryptocurrency provided that you are a private investor.
• HODLing crypto – excluding property tax on the total amount of assets.
• Cryptocurrency transfer between your wallets

Cryptocurrency lawyer in Switzerland

• Assistance of a lawyer on crypt issues in Switzerland
• Legal use of crypto currency
• Legalization of income received from operations with crypto and investments in cryptocurrencies
• Mining Bitcoin and Ethereum
• Consulting on conducting IEO
• Taxation of withdrawal of assets in fiat money
• Legal support of ICO and IEO projects
• Structuring of blockchain companies
• Help for crypto investors
• Assistance of a lawyer on investment in cryptocurrencies
• Registration of ICO/IEO/DeFi and Mining

We provide full legal support for transactions with cryptocurrencies, ICO / IEO, DeFi registration and organization of cryptocurrency mining, which is why you landed on this page when you entered “cryptocurrency legal help”, “cryptocurrency lawyer”, “bitcoin legal advice” into the search engine. help fromptocurrency”, “bitcoin consultations”, “lawyer’s advice on cryptocurrencies”, “blockchain contract”, “ethereum contract”, “legal advice on cryptocurrencies and taxes”

Legal assistance in Switzerland – Bitcoin and cryptocurrency.

Therefore, the assistance of lawyers in matters of cryptocurrencies, their mining, the registration of IEO, DeFi and other crypto projects is a set of measures aimed at the registration of such relationships in full compliance with the current legislation of Switzerland.

The most common questions to our lawyers are:

• Payment for services, works, real estate and other assets in Switzerland with Bitcoin (BTC) and Ethereum (ETH). Truth or myth?
• In which Swiss cantons can you exchange Bitcoin, Ethereum, Ripple and other cryptocurrencies?
• How to buy goods for bitcoin in Switzerland?

You can get answers to these and other questions by calling our lawyers or by leaving your phone number.

Crypto exchange in Switzerland, in individual cantons

Buying and selling cryptocurrency in Switzerland through YK Prykhodko and partners is profitable and safe. Try us at work!

Importantly! We recommend a mechanism for purchasing certain property for “crypto” by concluding a mining contract. The conclusion of a contract for the sale of goods or services where payment is made in crypto-currency may be declared null and void in a court of law, as crypto, as a currency, is not recognized at the legislative level in Switzerland. For example, crypto currency in Ukraine is not recognized as a means of payment, and due to some regulations and positions of central authorities, it is equated to surrogate money. Our lawyers are well versed in all trends in the regulation of cryptocurrency in the world, including in Switzerland, guaranteeing the most protected ways of its use.