Mining and Staking: Tax Treatment in Switzerland

Cryptocurrencies have long since entered the mainstream. Alongside trading Bitcoin or Ethereum, more and more investors in Switzerland are turning to mining and staking. But there is significant uncertainty: Do these earnings have to be taxed? Are they considered income or wealth? And what evidence do tax authorities require? This article provides a clear overview of how mining and staking are treated for tax purposes in Switzerland.

Mining: When Computing Power Becomes Taxable Income

Tax Classification

In mining, you provide computing power to validate new blocks on a blockchain. In return, you receive coins. In Switzerland, these rewards are classified as taxable income and must be declared in your tax return.

Self-Employment or Hobby?

The classification depends on scale. Those operating with professional hardware (ASICs, mining farms) and generating significant income are usually considered professional miners. In such cases, not only income tax but also social security contributions (AHV/IV/EO) are due. Smaller miners with modest returns can generally declare these earnings as side income.

Deductions for Miners

Expenses for electricity, internet, cooling, and hardware can be deducted as business expenses. Careful documentation of all costs is essential.

Staking: Passive Income That Counts for Taxes

Tax Treatment of Staking Rewards

When staking, coins are “locked” in a wallet or through an exchange to validate transactions. In return, you receive additional coins or interest. These rewards are also considered taxable income and must be declared.

Timing of Taxation

The decisive factor is the market value of the coins at the time they are received. The Federal Tax Administration (FTA) publishes annual tax values for cryptocurrencies. If no official rate exists, standard market prices (e.g. exchange rates) must be used.

Wealth Tax: Balances at Year-End Matter

Regardless of whether you mine or stake, the balance of your coins as of December 31 must be listed in the securities and assets inventory. Valuation is based on the official FTA price list.

Documentation and Proof

The tax office may request supporting documents. You should keep:

• Annual statements from crypto exchanges
• Wallet screenshots
• Transaction histories (e.g. staking rewards, mining pools)
• Invoices for electricity and hardware costs (for mining)

Comprehensive documentation prevents disputes and makes filing easier.

Special Cases and Cantonal Differences

While the general rules apply nationwide, some cantons scrutinize mining and staking income more closely. Those earning significant amounts should consult directly with the tax office or seek professional tax advice.

Conclusion: Transparency Brings Security

Both mining and staking are tax-relevant in Switzerland. While the coins themselves are subject to wealth tax, the rewards are considered income. Those who carefully document income and expenses save time and avoid disputes with the tax office. Transparency is key to a clean tax return.