Switzerland: crypto taxes when leaving Germany

• Disposals and losses: Private capital gains from crypto assets are generally completely tax-free, regardless of holding period or size of the gain, but not for commercial trading. Private capital losses are not deductible.
• Distinction: The Federal Tax Administration (ESTV) applies Circular No. 36 correspondingly. Private gains are established automatically if all of these are met: holding period of at least six months; annual volume of at most five times the holding at the start of the year; gains below 50 % of net income (guideline); no or little debt financing; derivatives only to hedge. Otherwise a case-by-case assessment follows.
• Staking, lending, liquidity mining: Taxable investment income at market value on receipt, generally at the personal progressive income tax rate.
• Mining and hard forks: Mined tokens are taxable at market value on receipt. A mining pool can establish commercial trading (self-employment, plus AHV/IV/EO contributions); mining alone and on a modest scale stays investment income. According to the view held in the literature, hard-fork tokens within private assets generally trigger no income tax on receipt; the Federal Tax Administration doesn't expressly address hard forks.
• Method and declaration: FIFO, LIFO, or the average method don't arise for private investors. What matters is the holding as of 31 December at the year-end price from the cantonal list; for the most common crypto assets the ESTV publishes official reference-date values via ICTax, for all other assets the market value has to be documented independently. Records and receipts must be kept for ten years.
• Wealth, VAT, company: The wealth tax covers the entire crypto holding at its year-end value. Exchanging francs or euros for pure payment tokens, and back, isn't VAT-relevant. Investing through a Swiss company loses the tax exemption (profit tax, effective burden roughly 12 to 22 %).

Year of departure

• Unlimited tax liability in Germany only ends once residence and habitual abode are given up. In Switzerland, tax residency arises for anyone who has their home there, or who stays in the country for at least 90 days without gainful employment, or at least 30 days with gainful employment.
• If a sale takes place after the German home is given up, the gain isn't domestic income under § 49 EStG; if both homes exist in parallel, the tie-breaker decides (permanent home, center of vital interests, habitual abode).
• Emigrant rule (Art. 4(4) of the Germany-Switzerland DTT), independent of § 2 AStG: anyone without Swiss nationality who was fully taxable in Germany for at least five years in total and moves to Switzerland can be taxed by Germany on a limited basis, on German-source income, in the year of emigration and the following five years; the Swiss tax is credited. Exception: emigration because of marriage to a person of Swiss nationality.
• Private crypto gains without a clear domestic origin would hardly fall under it; this hasn't been decided by the highest court. With substantial German income (salary, rent, dividends), discuss it with a tax advisor.
• Timing a sale before emigrating isn't needed: private capital gains from crypto assets are permanently tax-free in Switzerland regardless of holding period; a later sale creates no disadvantage compared with a sale before emigrating.

First year after leaving

• Preliminary check using the five criteria; commercial status turns the gain into taxable, potentially even AHV-liable, earned income.
• Commercial crypto history (as a former miner, say): the German classification doesn't bind the cantonal tax administration, but can serve as an indication if the activity continues.

More than ten years

• Nothing changes for income tax purposes (current position; changes in law possible).
• 26 cantonal wealth tax systems, up to a fivefold gap between cantons. On assets of CHF 1 million: Geneva around CHF 13,800, Zug around CHF 4,900 per year.
• Inheritance tax treaty: Germany's follow-up taxation right is extended from five to ten years for Switzerland; under certain conditions, Germany may continue to levy inheritance tax. Exceptions: a move to take up employment or because of marriage.

Moving on to a third country

• Switzerland has no exit taxation for privately held crypto assets: moving on to a third country doesn't trigger any tax on unrealized crypto gains, because Switzerland generally never taxes such gains. Anyone planning to carry out a business activity in the next country using crypto assets built up in Switzerland should document the transition from private to commercial activity cleanly.

Returning to Germany

• Re-establishing residence or habitual abode in Germany brings unlimited tax liability back; the emigrant rule and the extended follow-up taxation window no longer play any role.
• Acquisition cost and date remain decisive; if a position has been held for longer than a year in total, a sale is tax-free under § 23 EStG.