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Glossary

Currency Gains (Private Assets)

Currency gains in private assets arise when privately held assets denominated in a foreign currency, such as a foreign-currency account or securities denominated in a foreign currency, rise in value because of exchange-rate movements. In Switzerland, such gains generally count as a tax-free private capital gain under DBG (Federal Direct Tax Act) Art. 16 para. 3. They only become taxable if the underlying activity qualifies as commercial securities trading or self-employment, which places the assets in business assets.

At a glance

01

Currency gains on private assets are exempt from income tax as a private capital gain (DBG Art. 16 para. 3).

02

This requires the assets to be private: if the activity is classified as commercial securities trading, the assets are business assets and the gain becomes taxable.

03

Only the pure exchange-rate gain is tax-free; recurring income such as interest from foreign-currency investments remains taxable as income.

04

Conversely, currency losses in private assets are not deductible for tax purposes.

Frequently asked questions

Yes. Gains from exchange-rate movements on privately held foreign-currency assets count as a private capital gain and are exempt from income tax under DBG Art. 16 para. 3. Only recurring income such as interest remains taxable, not the exchange-rate gain itself.
When the assets belong to business assets, for example because the activity qualifies as commercial securities trading or self-employment. To assess this, the tax authorities examine criteria such as the frequency of transactions, external financing and the holding period (ESTV Circular No. 36).

Part of the topic

Steuern (privat)

Sources: Eidg. Steuerverwaltung (ESTV) · Systematische Rechtssammlung (fedlex)