Cryptocurrencies in the Swiss Tax Return: How to Declare Them

Cryptocurrencies such as Bitcoin, Ethereum or Cardano have long entered the mainstream. Many investors in Switzerland hold digital assets – whether as an investment, through trading or mining. But how exactly must cryptocurrencies be declared in the tax return?

Switzerland has clear rules: cryptocurrencies are assets and must be reported annually. Depending on how they are used, they may also qualify as taxable income. This article explains how the tax treatment works, what documentation is required and which mistakes to avoid.

Important note: Tax practice around cryptocurrencies is evolving rapidly. For complex situations (DeFi, NFTs, high trading volumes), consulting a tax professional is recommended. The key legal basis is the SFTA working paper "Cryptocurrencies" (last updated December 2021) and SFTA Circular No. 36 of 27 July 2012 on professional securities trading. (As of: tax period 2025)

Fundamental Treatment of Cryptocurrencies

Legal Classification

In Switzerland, cryptocurrencies are treated as movable intangible assets. Under tax law they are treated similarly to foreign currencies or securities. The SFTA (Swiss Federal Tax Administration) distinguishes three token types with different tax implications:

• Payment tokens (e.g. Bitcoin, Litecoin): Serve primarily as means of payment or store of value
• Investment tokens: Represent equity rights or claims to financial payments (similar to shares or bonds); income may be subject to withholding tax
• Utility tokens: Grant access to platforms or services; generally no taxable economic yield

Cryptocurrencies in Wealth Tax

All cryptocurrencies must be reported annually as of 31 December in the securities and credits schedule of the tax return. Wealth tax on cryptocurrencies is levied exclusively by cantons and municipalities – the federal government does not levy direct wealth tax on the private assets of natural persons.

What must be declared:

• Balances in personal wallets (hot wallets, cold wallets, hardware wallets)
• Coins and tokens on trading platforms (e.g. Kraken, Coinbase, Binance)
• All other tokens, provided a market value can be determined

Tax Values and Valuation Hierarchy

The SFTA publishes an annual official price list with tax values as of 31 December. The valuation hierarchy is as follows:

SituationApplicable ValueCryptocurrency included in SFTA price listOfficial SFTA tax value as of 31.12.Cryptocurrency not in SFTA list, but actively tradedYear-end rate of the trading platform used (e.g. Coinbase, Kraken) or CoinMarketCap/CoinGeckoNo current market value determinableOriginal purchase price in CHF

SFTA reference values as of 31 December 2024 (for tax period 2024 return):

• Bitcoin (BTC): CHF 85'926.49
• Ethereum (ETH): approx. CHF 3'185

SFTA reference values as of 31 December 2025 (for tax period 2025 return):

• Bitcoin (BTC): CHF 69'571.99
• Ethereum (ETH): approx. CHF 2'364

Note: The complete official price lists are available at estv.admin.ch.

Income Tax and Cryptocurrencies

Capital Gains: Generally Tax-Free for Private Investors

Gains from selling cryptocurrencies are tax-free for private investors – even if those gains are substantial. This follows the general principle of Swiss tax law that private capital gains are not taxed.

Important: The exchange of one cryptocurrency for another (e.g. BTC → ETH) is also treated as a tax-neutral event for private investors – no taxable income arises. Documentation is nevertheless recommended.

Professional Securities Trading: Gains Taxable

Anyone classified by the tax authorities as a professional securities trader must declare all gains as income. In return, losses become tax-deductible.

SFTA Circular No. 36 defines five cumulative criteria for qualifying as private wealth management (the safe harbour rules):

CriterionThreshold for private wealth managementHolding periodAt least 6 monthsTransaction volumeLess than five times the opening portfolio value at the start of the yearCapital gains as share of incomeRealised capital gains below 50% of taxable incomeExternal financingNo use of borrowed capital (no loans, no leverage)DerivativesUsed only to hedge existing positions

Anyone who meets all five criteria is protected as a private investor. Failing even one criterion may result in classification as a professional trader – even if the other criteria are met.

Typical risk factors for professional classification:

• Very short holding periods (day trading, swing trading)
• Use of leverage products or margin trading
• Very high trading volumes relative to total assets
• Professional infrastructure (dedicated hardware/software, full-time activity)

Mining

Income from mining (proof-of-work) is taxable income. The applicable value is the market value at the time of receipt (i.e. when the coins are credited), converted into CHF.

• Private mining as a hobby: Declare income as secondary self-employment income
• Commercial mining: Qualifies as self-employed activity; costs (electricity, hardware depreciation) are deductible; AHV contribution obligations apply

Mined cryptocurrencies must also be declared as assets at their value as of 31 December.

Staking

Staking rewards constitute taxable income, to be reported at market value in CHF at the time of receipt.

• Rewards are taxed as income at the time they are received
• As of 31 December, they also increase the taxable asset balance
• No withholding tax on staking rewards (SFTA practice, as of 2023)

Lending and DeFi Income

Interest income from lending cryptocurrencies is also taxable income. The same applies to liquidity mining returns and similar DeFi yields (yield farming). The assessment of complex DeFi situations is often case-by-case; professional tax advice is recommended.

NFTs (Non-Fungible Tokens)

NFTs are also taxable assets and must be declared. Since the SFTA does not publish price lists for NFTs:

• The applicable value is the market value as of 31 December, if determinable
• If no market value is available: declare at the original purchase price in CHF

Evidence and Documentation

Careful documentation protects against queries and back-taxation – particularly in light of the upcoming automatic information exchange (see below).

Minimum Documentation for All Crypto Holders

• Wallet statement as of 31 December (screenshot or export) showing all coin/token balances
• SFTA price list or platform rate for valuation
• List of all exchange accounts and wallet addresses

Extended Documentation for Income Activities

For mining, staking, lending or active trading, the following is recommended:

• Complete transaction history (CSV export from exchanges and wallets)
• Timestamp and market value in CHF for each item of income received
• Proof of expenses for commercial mining (electricity, hardware)

Tip: Tax tools such as Koinly, CoinTracking or Blockpit simplify the analysis and can generate canton-specific tax reports.

Automatic Information Exchange from 2027 (CARF)

From 1 January 2027, crypto platforms will be required to report data on their Swiss users to the SFTA (Crypto Asset Reporting Framework, CARF). Authorities will first receive information about crypto assets and transactions from around 2028. It is therefore essential to declare existing holdings and income completely and correctly now – failure to declare can lead to back-taxes and penalties.

Practical Examples

Example 1: Long-Term Private Investor

A person holds as of 31 December 2025: 2 Bitcoin and 10 Ethereum.

Calculation using official SFTA tax values 2025:

• 2 BTC × CHF 69'571.99 = CHF 139'143.98
• 10 ETH × CHF 2'364.08 = CHF 23'640.80
• Total crypto assets: CHF 162'784.78

This amount is entered in the securities and credits schedule as taxable wealth. Gains from any sale remain tax-free, as the safe harbour criteria are met (holding period >6 months, no leverage, no excessive volume).

Example 2: Mining Income

A miner mines Bitcoin in 2025 with a total value of CHF 15'000 (valued at market price at the time of each receipt). Mining is a hobby alongside main employment.

• CHF 15'000 is declared as secondary income in the tax return
• Coins still held as of 31 December are additionally declared as assets
• As private hobby mining, no AHV contributions are due (check in individual case)

Example 3: Staking Income

An investor receives staking rewards from Cardano (ADA) in 2025 totalling CHF 2'500 (valued at market price at the time of each distribution).

• CHF 2'500 in staking rewards is declared as income
• As of 31 December, the entire ADA balance (including rewards) is recorded as assets
• No withholding tax applies to staking rewards

Example 4: Cryptocurrency Swap

An investor swaps their entire Ethereum holding into Bitcoin in May 2025. They have held the ETH since 2022.

• The swap is tax-neutral for private investors – no taxable income, no capital gain
• The new Bitcoin must be declared as assets as of 31 December 2025 at the SFTA tax value
• Documentation of the swap (date, exchange rate) is recommended as evidence of private wealth management

Common Mistakes and Tips

Common Mistakes

• Not declaring small wallet balances: Every balance is subject to declaration – there is no de minimis threshold for wealth reporting
• Treating mining and staking income as tax-free: Incorrect – they are taxable income and must be declared
• Not retaining transaction history: Without documentation, tax authorities may apply blanket uplifts during audits
• Confusing wealth tax with capital gains tax: Wealth tax applies to the balance as of 31.12. (cantonal level); capital gains are tax-free for private investors
• Using incorrect valuations: Using self-calculated or estimated rates instead of the official SFTA tax values
• Forgetting crypto held on foreign exchanges: Holdings on Kraken, Binance, Coinbase etc. must all be declared
• Assuming crypto swaps are taxable: For private investors, BTC → ETH is not a taxable event

Tips

• Check the SFTA price list annually: The list is regularly expanded; value unlisted coins using the platform rate or CoinMarketCap
• Use a crypto tax tool: Koinly, CoinTracking or Blockpit create structured overviews and greatly simplify the tax return
• Review safe harbour criteria regularly: Active traders should check each year whether all five criteria are still met
• Record mining and staking separately: Document timestamp and market value in CHF at receipt
• File fully now: With CARF automatic reporting from 2027, crypto data will be shared with authorities automatically; complete declaration today prevents future problems

Summary

Cryptocurrencies in Switzerland are clearly regulated: they form part of taxable wealth and must be declared annually as of 31 December using the official SFTA tax values. Wealth tax is levied exclusively at cantonal level – the federal government does not levy wealth tax on private assets.

Capital gains remain tax-free for private investors as long as the safe harbour criteria of Circular No. 36 are met. Income from mining, staking and lending, on the other hand, is taxable and must be declared in full.

With the introduction of automatic information exchange (CARF) from 2027, crypto transactions will also be captured by the authorities. Those who declare their crypto assets fully and correctly today are well positioned.