Situation
Securities account & German tax returnA Swiss securities account while living in Germany
If you are tax resident in Germany and hold a securities account with a Swiss bank, you will generally need to prepare the investment income information yourself for your German tax return. Unlike a German bank, a Swiss bank often does not withhold German tax on investment income. Bank statements, income statements, fund information and foreign withholding taxes are therefore particularly important.
Overview
A Swiss securities account requires separate preparation for German tax purposes
If you live in Germany, investment income from a Swiss securities account is generally subject to German income tax. However, the Swiss bank does not necessarily prepare its statements under German tax rules.
Interest, dividends, fund and ETF income, sales and foreign tax deductions must therefore be identified in the Swiss bank documents and classified under German law.
Particularly for funds, ETFs, historical acquisition costs and foreign withholding taxes, the figures supplied by the Swiss bank may differ from the tax calculations required in Germany.
This topic from the Swiss perspective
TaxRep Switzerland covers foreign securities accounts held by Swiss residents, Swiss tax reporting, wealth tax and the coordination of foreign withholding taxes.
Investment income
Each type of income is classified under German tax law
Interest
Interest on bank accounts, fixed-term deposits and bonds is determined for the German tax return.
Dividends
Gross dividends and Swiss or other foreign withholding taxes deducted from them are recorded separately.
Funds & ETFs
The investment is assessed under the German investment fund tax rules.
Sales
Acquisition and disposal data is prepared to calculate gains under German tax rules.
A Swiss tax report does not automatically replace the German tax calculation.
The bank documents provide the underlying data. However, for a German resident, the tax classification is determined by German tax law.
Withholding taxes
Swiss and other foreign tax deductions must be reviewed separately
Swiss withholding tax
For Swiss-source income, it is necessary to establish which portion of the tax can be reclaimed from Switzerland and which portion remains payable under the tax treaty.
Withholding taxes from third countries
If the Swiss account holds US, French or other foreign securities, the withholding tax treatment depends on the respective issuer’s country.
German foreign tax credit
Only the amount of foreign tax eligible for a credit under the applicable rules can be taken into account in Germany.
Refunds
Refundable withholding tax should not be treated prematurely as a final foreign tax burden.
Common questions
Questions frequently arising with a Swiss securities account
Do I have to declare a Swiss securities account in Germany?
If you are tax resident in Germany, the taxable investment income generated by the account and relevant transactions, in particular, must be taken into account in Germany.
What if the Swiss bank does not deduct German tax?
You must prepare the income information and report it in your German income tax return.
Can I simply use the Swiss tax report?
Not necessarily. Swiss tax values and income classifications may differ from the German tax treatment.
What rules apply to Swiss funds and ETFs?
German taxation follows its own investment fund tax rules, including the advance lump-sum investment income amount (Vorabpauschale), partial tax exemptions and specific rules for disposals.
How are Swiss dividends treated?
The gross dividend, Swiss withholding tax, any refund and the German foreign tax credit must be coordinated.
What about bank account interest?
Interest from Swiss bank accounts generally forms part of the investment income to be reported in Germany.
What happens when securities are transferred to Germany?
Acquisition costs and historical transaction data should be transferred in full or documented separately. For funds and ETFs, the investment tax history is also important.
What if I move to Germany from Switzerland?
The start of German tax liability and the securities held at that time should be carefully documented.
Checklist
Documents for a Swiss securities account held by a German resident
Annual securities account statement
Holdings, quantities, currencies and portfolio values at year-end.
Investment income statement
Interest, dividends and other ongoing investment income.
Withholding taxes
Swiss withholding tax and other foreign tax deductions.
Transactions
Purchases, sales, securities transfers and corporate actions.
Acquisition costs
Historical acquisition costs and purchase confirmations for all holdings.
Fund documents
ISIN, fund name, share class and relevant annual information.
Further reading
Specialist articles on Swiss securities accounts
Each type of investment is assessed under the applicable German tax rules. The following pages provide more detail on the main portfolio holdings discussed above.
Swiss shares held by German residents
Dividends, Swiss withholding tax, share sales and German taxation.
Explore this situation (in German)Swiss dividends for German residents
35% Swiss withholding tax, the tax retained under the treaty, German taxation and foreign tax credits.
Read the articleReclaiming Swiss withholding tax as a German resident
Maximum treaty rate, eF85, refunds, deadlines and coordination with German taxation.
Read the articleSelling Swiss shares as a German resident
Article 13 of the tax treaty, section 20 of the German Income Tax Act (EStG), acquisition costs, CHF conversion and loss offsetting.
Read the articleSwiss funds and ETFs held by German residents
Investment fund taxation, distributions, the Vorabpauschale, partial tax exemptions and Swiss securities accounts.
Explore this situation (in German)Vorabpauschale on ETFs held in a Swiss securities account
Base interest rate, basic return, distributions, partial tax exemptions and the year of acquisition.
Read the articlePartial tax exemptions for Swiss funds and ETFs
Equity funds, mixed funds, real estate funds and German fund classification.
Read the articleSelling funds and ETFs from a Swiss securities account
Disposal gains, Vorabpauschalen, partial tax exemptions, CHF conversion and older holdings.
Read the articleTransferring a fund portfolio from Switzerland to Germany
Acquisition data, Vorabpauschalen, older holdings, substitute tax bases and tax history.
Read the articleSwiss funds and ETFs after moving to Germany
Historical acquisition costs, the Vorabpauschale, partial tax exemptions, older holdings and subsequent sales.
Read the articleRelated topics
Further topics on Swiss investments
Investments & withholding taxes
Shares, funds, ETFs, securities accounts and Swiss withholding tax.
Explore the topicSwiss shares – German residence
Dividends, Swiss withholding tax and share sales.
Explore this situation (in German)Swiss funds & ETFs
German investment fund tax rules for a Swiss securities account.
Explore this situation (in German)Shareholdings in a Swiss corporation (AG)
Entrepreneurial shareholdings, dividends, section 17 EStG and corporate matters.
Related situation (in German)Germany–Switzerland tax advice
Do you live in Germany and hold a securities account in Switzerland?
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