Stamp duty in Switzerland: an introduction for investors

If you invest in securities in Switzerland, you’ll quickly come across one term: stamp duty. It usually appears as a small deduction on your transaction statement – but what exactly is behind it? This article offers a concise explanation of what stamp duty is, when it applies, and how it could affect your investment strategy.

What is stamp duty and how is it levied?

Stamp duty – officially called the federal stamp tax – is an indirect federal tax applied to certain legal transactions. These include:

• Buying and selling of securities

• Issuing new shares or equity rights

• Taking out certain insurance policies

Unlike cantonal or direct federal taxes, this duty is levied solely by the Swiss federal government and contributes fully to federal finances.

Stamp duty is often confused with withholding tax. However, the two serve different purposes:

• Withholding tax: A 35% source tax on investment income such as dividends and interest, which can be reclaimed – it ensures proper tax reporting.

• Stamp duty: A final transaction tax on the trading and issuing of securities. It cannot be reclaimed.

Example: If you hold Swiss shares and receive dividends, withholding tax applies – but you can reclaim it. When you buy or sell those shares, stamp duty applies – it’s deducted during the transaction and remains a cost factor.

Stamp duty is collected through a self-assessment procedure: financial institutions or insurers calculate and remit the tax directly to the Federal Tax Administration. For individual investors, stamp duty is automatically included in the transaction. It often appears as a “stamp tax” or “federal stamp” in account statements.

Looking for expert investment advice? Schedule your free session with a wealth advisor today.

Book a call

Where does stamp duty apply in Switzerland?

Swiss stamp duty applies in three different contexts, depending on the type of transaction involved:

1. Transfer stamp duty on securities

This tax applies to the purchase and sale of securities such as shares, bonds, ETFs, or fund units – as long as the transaction is conducted via a Swiss bank or domestic broker.

Examples:

• Buying Swiss or foreign shares through a Swiss securities account

• Purchasing funds, ETFs, or structured products on the stock exchange

Not subject to the tax:

• Derivatives such as options or futures

• Swiss bonds (exempt since 2023)

• Transactions via foreign brokers

Note: For private investors, this is the most common form of stamp duty. It’s automatically included in the transaction and deducted by the broker.

2. Issuance duty on capital increases

This tax is levied when a company raises new equity capital – typically through the issue of new shares.

• Rate: 1% of the capital amount exceeding a CHF 1 million exemption

• Relevance for private investors: Applies mainly when participating directly in capital increases, such as during an Initial Public Offering (IPO)

3. Insurance stamp duty on premiums

Stamp duty is also levied on certain insurance premiums:

• 5% on non-life insurance (e.g. car, home contents)

• 2.5% on single-premium life insurance policies

Exemptions: Premiums for health, accident or disability insurance are not subject to stamp duty.

While institutional entities such as pension funds or social security bodies may be exempt, private individuals are generally subject to full stamp duty. However, certain strategies – like using foreign brokers or investing in pension funds – can help reduce or avoid some charges, although these options should always be carefully evaluated.

How is stamp duty calculated and paid?

The calculation of stamp duty depends on the value of the respective transaction. For securities purchases and sales — that is, the so-called transfer stamp duty — the tax amounts to 0.15% for domestic and 0.30% for foreign securities. In practice, however, investors only bear half of this charge, as it is formally split between buyer and seller. Effectively, you thus pay 0.075% when trading Swiss securities and 0.15% for foreign securities.

A simple example: if you buy shares in a Swiss company worth CHF 10,000, a stamp duty of CHF 7.50 applies. When selling the same shares at a later date, the same charge is applied again on the sale value. While the tax remains relatively low, it can add up significantly with frequent trading or large volumes.

Separate rates apply to insurance premiums. For example, many non-life insurance policies incur a 5% stamp duty, while single-premium life insurance contracts are charged 2.5%. Here too, the taxation is automatic — the charge is already included in the premium and passed on by the insurance company to the federal government. Explicit itemisation of the tax rarely occurs.

For capital increases, the so-called issuance duty applies. This amounts to 1% on newly raised equity, provided the amount exceeds CHF 1 million. For private investors, this charge is usually only indirectly relevant — for example, when participating in an initial public offering (IPO) or subscribing to new shares directly from the company.

The processing of stamp duty takes place entirely in the background. As an investor, you neither need to fill out forms nor make separate payments. Your bank or broker calculates the tax automatically based on the transaction value, deducts it upon order execution, and forwards the amounts in bulk to the Swiss Federal Tax Administration. In the transaction statement, the charge typically appears under designations such as "federal stamp" or "stamp duty."

Transparency from providers is especially important. At Alpian, all fees — including stamp duty — are clearly shown in the transaction overview. This allows you to see at any time how much you have effectively invested and what costs have been incurred. Combined with a transparent fee model, low brokerage fees, and an efficient custody account offering, this helps you keep an eye on the overall cost structure of your investments.

Frequently asked questions about stamp duty

Question: Which transactions are subject to stamp duty?
Answer: Stamp duty applies to the purchase and sale of securities through Swiss banks or brokers — for example, shares, bonds, ETFs or funds. Transactions via foreign brokers, derivatives such as options, or very short-term money market papers are excluded.

Question: How high is the stamp duty and who pays it?
Answer: For Swiss securities, the levy is 0.15%, and for foreign securities 0.30%. Investors usually pay half: 0.075% or 0.15% per transaction. The bank automatically transfers the amount to the federal government.

Question: How is the stamp duty paid?
Answer: Stamp duty is included directly in the transaction. Your bank or broker deducts it from your account and transfers it collectively to the tax authorities. It usually appears on your statement as “stamp duty” or “federal stamp”.

Question: Are there exceptions or ways to avoid stamp duty?
Answer: Yes, in certain cases. Domestic bonds have been exempt since 2023. Purchases via foreign brokers or investments in tax-exempt pension funds (e.g. pillar 3a) can also avoid the levy. Such strategies should be carefully considered.

Question: How does stamp duty affect my investment strategy?
Answer: For long-term investors, the effect is usually minor. However, frequent trading can cause the levy to add up. Therefore, it is worthwhile to plan for stamp duty as a fixed cost and optimise other fees accordingly.

Conclusion: Small but relevant

Stamp duty is a typical Swiss transaction levy — transparent, legally fixed, and collected automatically. For investors, it is a fixed factor that can be managed with good planning. Avoiding unnecessary transactions and choosing transparent providers can minimise its impact on your portfolio.