1. In a Nutshell
The key question is whether the gain from selling shares or other assets truly flows into your pocket gross for net – or whether the tax authorities want a seat at the table.
Once your activity is classified as commercial, a tax-free capital gain can quickly turn into taxable income, including social security contributions.
2. Key Takeaways
Tax-free treatment applies only if the assets clearly qualify as private wealth. As soon as your activities go beyond simple asset management (e.g. professional or commercial trading), the gain may become taxable income.
Key factors include the frequency of transactions, the use of borrowed funds, and any connection to your professional activity.
Two practical examples:
- Professional stocks trading: Frequent buying and selling or extensive use of leverage can quickly reclassify you from a private investor to a trader.
- Indirect partial liquidation: If you sell a company and the buyer finances the purchase price using the company’s own reserves, this can become a costly tax issue for you.
3. Planning and Timing Essentials
- Early clarification is worth its weight in gold: Before selling assets or shareholdings, the tax classification (private vs. business assets) should be reviewed – ideally with a tax expert or via a tax ruling.
- Mind your sales strategy: A one-off sale may be tax-free, while repeated transactions with short holding periods may be deemed commercial and therefore taxable.
- Check special cases: When selling business units, real estate, or structured financial products, it pays to optimise contractual structures and timing in advance to avoid really shocking surprises from the tax authorities.
4. Why This Matters to me
Knowing the rules protects your wealth. The biggest benefit is legal certainty. Through early analysis – or a binding tax ruling – you ensure that your capital gain truly remains yours and is not later reduced by a reclassification for tax purposes.
