Securities dealer (Switzerland)

A securities dealer (marchand de valeurs mobilières, Effektenhändler) is a Swiss tax qualification attributed to any individual or entity who buys and sells securities on their own account on a professional, systematic basis. This qualification is critical for capital gains tax: unlike private individual investors whose gains are generally tax-exempt, securities dealers have capital gains treated as taxable income from self-employment. Qualifying criteria are cumulative: frequency of transactions, use of third-party funds (credit), short holding periods and systematic trading activity.

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Example: a Swiss entrepreneur who resells 10 minority stakes over 3 years, partially financed with credit, risks being reclassified as a securities dealer by the cantonal tax authority. This reclassification would convert their capital gains — in principle tax-exempt — into taxable income at the marginal rate, representing an additional 20–30% tax on realised gains. Prior analysis of this risk is essential in every Swiss disposal structuring mandate.

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Hectelion analyses securities dealer reclassification risk in Swiss business sale mandates, coordinating with cantonal tax advisors to structure transactions that preserve capital gains exemption.