IBKR: sell and immediately rebuy ETF to reset cost basis before leaving CH?

1

Hi,

Since Switzerland has no capital gains taxes, would it be smart to sell and immediately (say a minute later) rebuy all my ETFs just before leaving so that the cost basis in the next country of residence and taxation is reset to today’s value? This would lower capital gains tax in the new country as it would reset to the share price on the day I did the swap rather than when I bought.

Does anyone know anything about this? Would it work?

3

Probably depends on the country. Might be not needed at all, or might be fully ineffective.

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4

I read once that at least when moving to Germany it’s useful to sell before moving, see here (in German), section 2.2:

For Austria instead seems not needed (page 3, search for step-up):

Probably depends on the country. Maybe useful to check with an advisor in the country you plan to move to.

5

Thanks. I’m not sure if the destination country (France) will accept it, but I took the chance anyway. With fees of 0.02% on the transaction it’s worthwhile just in case it makes a difference.

I have to admit it was the most expensive thing I ever sold and bought with a single click in my whole life so far.

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6

yes solid idea and generally advised to do. I personally would switch to an equivalent product though, for extra “safety”. But it’s not needed most of the time.

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