The tax regimes for cryptocurrencies in France and Switzerland differ: Switzerland offers more favorable conditions for private investors, while France imposes strict rules with a flat 30% tax on capital gains.
Cryptocurrencies in Switzerland: Favorable Conditions for Private Investors
Switzerland is considered a tax haven for cryptocurrency investors. Capital gains from crypto trading are tax-exempt for individuals, provided they are not classified as professional traders. Swiss crypto taxes vary by canton and include: wealth tax (0.1% to 1%), income tax (applicable to earnings from mining, staking, etc., up to 40%), and taxes for professional traders (up to 40% depending on the canton). Advantages include no capital gains tax for private investors and VAT exemption on crypto transactions.
Cryptocurrency Taxation in France: Strict Rules
In France, since 2019, cryptocurrency transactions are taxed at 30% flat rate on capital gains. This tax includes 12.8% tax and 17.2% social contributions. French citizens must declare their crypto accounts on foreign platforms, or face fines. Professional investors may be reclassified under BNC or BIC regimes with progressive taxation up to 45%. Possible exemptions include capital gains tax exemption for sales not exceeding €305 per year and no tax on crypto-to-crypto exchanges.
Choosing a Country for Crypto Tax Optimization
The choice between France and Switzerland depends on cryptocurrency activities. Private investors benefit more in Switzerland with no taxes on capital gains. If income is generated through staking or mining, Swiss tax rates are more favorable due to cantonal variations. Professional traders might find Switzerland more attractive with adaptable taxation. However, the development of tax regimes in Europe is crucial to consider.
Switzerland offers more attractive tax conditions for private crypto investors compared to France. However, professional investors should consider the development of tax regimes across Europe.
