Swiss FIRE: ETFs, Brokers & Withholding Tax Explained

Switzerland is one of the best countries in the world for the FIRE movement: high incomes, no capital gains tax for private investors, and a stable currency. The trade-off: high cost of living and a few currency and tax quirks to navigate.

Swiss ETFs to consider

• Vanguard Total World (VT) — single-fund global equity exposure, US-domiciled, very low TER (0.06%). Comes with the 15% US dividend withholding via the W-8BEN treaty.
• iShares Core MSCI World (IWDA / SWDA) — Ireland-domiciled, accumulating, popular in Europe to avoid US estate-tax exposure above USD 60k.
• UBS ETF SPI (CHSPI) — Swiss-domiciled exposure to the Swiss Performance Index, useful for CHF-denominated diversification.
• iShares Core MSCI EM IMI — for emerging-market tilt.

For most Swiss investors, a 2-fund combo of IWDA + EIMI in CHF or a single VT position covers world equities at ~0.07-0.20% TER.

Swissquote vs Interactive Brokers

	Swissquote	Interactive Brokers
FX cost	~0.95% spread on conversion	~0.002% + USD 2 fee
US ETF trading fees	From CHF 9	From USD 0.35
Custody fee	Up to 0.10%/y	Free above USD 100k
Swiss tax statement	Included (e-tax)	Manual export
Stamp duty	Yes (0.075% Swiss / 0.15% foreign)	No

Swissquote wins on convenience and Swiss-tax-statement automation. Interactive Brokers wins on cost, especially for FX and large positions. Many Swiss FIRE investors use both — IB for accumulation, Swissquote for the tax-friendly Swiss core.

The 35% withholding tax (Verrechnungssteuer)

Dividends from Swiss stocks and interest from Swiss bonds are subject to a 35% federal withholding tax. As a Swiss resident you reclaim it 1-for-1 when you declare those amounts in your tax return — net cost is zero. If you don't declare them, the 35% becomes the final tax.

For US dividends, holding a US-domiciled ETF (like VT) plus filing W-8BEN reduces US withholding from 30% to 15%. Half of that 15% can be credited against your Swiss tax (DA-1 form), reducing the effective drag.

Practical Swiss FIRE plan

1. Maximise Pillar 3a (CHF 7,258) into a 99% equity index portfolio at VIAC or Finpension.
2. Use Pillar 2 buy-ins for tax-deferred growth at high income years.
3. Open IB and Swissquote, automate monthly buys of IWDA + EIMI or VT.
4. Reclaim Verrechnungssteuer and DA-1 every tax year.
5. Track total net worth and savings rate in Finch across CHF, EUR and USD.