CHF 100,000 at a Swiss bank
0.65% in fees is CHF 650 a year. At a low-cost broker the same portfolio costs about CHF 80. Add CHF 300 of reclaimed withholding tax and you keep roughly CHF 870 a year.
Free calculator
Swiss Tax Optimizer
Two things quietly eat a Swiss portfolio: the fee your bank charges every year, and the withholding tax you never reclaim. Put your own numbers in and see what both cost you. A CHF 500,000 portfolio earning 5% with a 0.75% bank fee saves around CHF 3,350 a year by switching broker, plus CHF 1,500 reclaimed tax.
What it costs you
Total annual tax cost
CHF 1'500
15% withheld on CHF 10'000 of dividends before it reaches you.
Total annual broker fees
CHF 3'750
0.75% of your portfolio, charged whether markets rise or fall.
Savings if you switch broker
CHF 3'350
Down from CHF 3'750 to CHF 400 a year for the same holdings.
Tax recovered with DA-1
CHF 1'500
US withholding tax you can reclaim on your Swiss return each year.
Total you could keep every year
CHF 4'850
That is CHF 48'500 over ten years before any compounding, on annual returns of CHF 25'000. Fees you never pay stay invested and keep earning.
Referral link: ibkr.com/referral/marco1592. The bonus is paid by Interactive Brokers. Using it costs you nothing extra.
Three worked examples
CHF 500,000 earning 5%
A 0.75% bank fee costs CHF 3,750 against CHF 400 elsewhere. That is CHF 3,350 saved, plus CHF 1,500 of US withholding tax reclaimed through the DA-1 form.
CHF 1,000,000 portfolio
The gap becomes CHF 6,700 a year in fees alone. Over a decade, with the money left invested, that difference is worth well over CHF 80,000.
This calculator is a simplified model for private investors resident in Switzerland. It assumes the withholding tax on your dividends is fully reclaimable through the DA-1 form, which is the normal case for US listed funds when a W-8BEN is on file, and it ignores income tax, cantonal wealth tax and compounding. Capital gains are tax free for private investors in Switzerland. This is general information, not tax advice: check your own situation with your cantonal tax office or an adviser.