Capital gain (Switzerland)

Capital gain in Switzerland refers to the profit realised on the sale of assets — securities, real estate, business interests. For Swiss resident private individuals, capital gains on movable assets (shares, bonds) are generally exempt from income tax at both federal and cantonal levels, provided the seller is not classified as a professional securities dealer. This exemption is a fundamental advantage of Swiss residency for entrepreneurs selling their companies, in contrast to France where capital gains on share sales are subject to a 30% flat tax. The distinction between Swiss and French treatment is critical in cross-border succession and sale planning.

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Example: a Swiss resident entrepreneur sells their company for CHF 15.0 million (acquisition cost: CHF 3.0 million). The CHF 12.0 million capital gain is fully exempt from Swiss income tax — saving approximately CHF 3.6 million versus the French 30% flat tax regime. The exemption is subject to not being classified as a professional securities dealer, a risk that must be assessed in advance for frequent or leveraged transactions.

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Hectelion advises on the Swiss capital gain exemption framework and its interaction with French tax law in cross-border business sale planning.