# Swiss "FI Gotchas"?

**URL:** https://forum.mustachianpost.com/t/swiss-fi-gotchas/969
**Category:** Share your story
**Created:** [June 21, 2018, 4:35pm UTC](https://forum.mustachianpost.com/t/swiss-fi-gotchas/969 "2018-06-21T16:35:15Z")
**Posts on this page:** 1
**Showing post:** 3

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### Author: ![Joey](https://forum.mustachianpost.com/letter_avatar_proxy/v4/letter/j/f14d63/32.png) [@Joey](https://forum.mustachianpost.com/u/Joey)
#### Post date: [June 21, 2018, 6:48pm UTC](https://forum.mustachianpost.com/t/swiss-fi-gotchas/969/3 "2018-06-21T18:48:28Z")

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Hey there bruce  
You raise some interesting questions, which might also concern me. I am planning to retire in Switzerland.

> [@bruce](#):
>
> Taxes: How does this picture change in FIRE e.g. with wealth tax?

Wealth Tax for example in the canton of aargau is 0,21% with \>1’200’000 CHF in assets.  
In this case the wealth tax is 2520 / year (for 1,2M), not that much… I think if you “pay” yourself an income from you portfolio, you have to pay a tax on that, but I’m not too sure about this…

I have another tax question I would like to add. When in the accumulating phase, we profit from no capital gains tax in Switzerland. Professional traders however get taxed on capital gains.  
Now when we start to live off our investments we are not sustaining ourselves with a job, will we get classified a professional investors and thus have to pay capital gains tax?

> [@Taxation in Switzerland: Mustachian Know-How, Best Practices](https://forum.mustachianpost.com/t/taxation-in-switzerland-mustachian-know-how-best-practices/75/14):
>
> The Swiss Federal Tax Administration FTA has set five criteria. If you want to make absolutely sure that you are exempt from paying taxes on your capital gains, you need to fulfill all of these five criteria together:
> 
> …  
> **You do not depend on the profits from trading your securities in order to finance your household expenses. Rule of thumb: the profits from trading should make up less than 50% of your total net income during one tax period.**
> 
> …

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