I’m thinking about opening an account with XTB while living in Switzerland. XTB would be an account for day trading with CFD and high leverages (which is not possible with IBKR).
Does anyone know how and where taxes would need to be paid?
XTB is Polish with a German branch. My tax residency is in Switzerland.
Since the profit would be made with a German broker - do I need to report to the german tax authorities as well?
This has a high chance to change your classification to “professional investor”,meaning that you need to pay taxes on capital gains on all your capital.
I’m no expert, but I would say you still pay taxes in Switzerland as usual. IBKR is also not a Swiss broker, but you don’t need to report anything to the US authorities.
My concern after reading this message would be if OP will get these gains in the first place…
Which is the main reason you’re unlikely to be classified pro trader, they don’t want you to deduct the losses you have while gambling 