Broker · Switzerland
Swissquote & PFICs for U.S. citizens
Why Swissquote steers U.S. persons away from U.S.-domiciled ETFs — and how the funds you can buy instead become Form 8621 PFICs.
By Danilson Ramos · Founder, Atamatax
Published July 2026 · Updated November 2026
Your situation, in five answers
- What happened
- Swissquote would not let you buy a U.S.-domiciled ETF, so you bought — or were sold — a European or Swiss fund instead.
- Why it matters
- The restriction is Swissquote's terms, not a tax rule; the tax consequence is that the funds you could buy are the ones U.S. tax treats worst. Owning them is legal; leaving them off the return is the problem.
- What it could trigger
- Each UCITS or Swiss-domiciled fund may be a PFIC needing its own Form 8621 every year, under the §1291 default unless you elect otherwise. The account itself may need the FBAR and Form 8938.
- What you need
- Each holding's ISIN (the domicile, not the exchange, is the clue), the purchase date and cost of every lot, any distributions, and the account's maximum and year-end value for each year held.
- What to do next
- Check my Swiss holdings for PFICs
Part of the Switzerland desk — every US tax topic for Switzerland in one place.
Check it for your own holding
Could this investment be a PFIC?
Two questions and, if you have it, the ticker or ISIN. The read is immediate, nothing you enter leaves this page, and it names what would settle the rest.
Free, no account, nothing you answer leaves this page. Open the full portfolio scanner
Screened against the fund registry on this page. It is never sent anywhere.
A screen. Whether a fund is a PFIC turns on its own annual income and asset facts under §1297; the read above says how far your answers go and what would settle the rest.
Swissquote is one of the most common brokers for Americans living in Switzerland — and one of the most common ways they end up holding PFICs without realising it.
Can a U.S. citizen use Swissquote?
Generally yes for U.S. citizens resident in Switzerland — but Swissquote is not authorised or regulated by any U.S. authority and does not serve U.S. residents. More importantly for your taxes, its terms restrict trading U.S.-domiciled ETFs for retail clients. (Based on Swissquote's own legal information and consistent reports from U.S.-person users — confirm current terms with Swissquote.)
Why that matters: the funds you can buy are PFICs
A UCITS ETF (Ireland or Luxembourg) or a Swiss-domiciled fund is a PFIC for a U.S. person. Each one generally needs its own Form 8621 every year, and without an election the default §1291 regime taxes gains and large distributions at the top marginal rate plus an interest charge dated back to purchase.
What you hold at Swissquote → is it a PFIC?
| Holding | PFIC? | Typical filing |
|---|---|---|
| U.S.-domiciled ETF (ISIN US…) | No | FBAR / Form 8938 if over threshold |
| UCITS / EU ETF (ISIN IE, LU…) | Likely | Form 8621 each year |
| Swiss-domiciled fund (ISIN CH…) | Likely | Form 8621 each year |
| Individual company shares | No | Report the account |
| Cash | No | FBAR / Form 8938 if over threshold |
What U.S. persons at Swissquote actually do
- Check each holding's domicile — U.S. vs non-U.S. — not the exchange you bought it on.
- Avoid buying non-U.S. funds going forward.
- Many U.S. persons move to a broker that offers U.S.-domiciled ETFs and U.S. tax statements — Interactive Brokers is the common choice.
- If you already hold UCITS funds, model the §1291 cost before selling.
How many forms, and when this stops being a DIY return
Form 8621 is filed per PFIC, per year. Four Swissquote funds held for three unreported years is twelve forms, and each fund sold or paying a large distribution adds a §1291 allocation that needs the purchase date and cost of each lot. That count is what decides whether this is a self-serve return or a scoped case: Atamatax's PFIC package prepares up to 25 Forms 8621 inside one return for a flat $499; a larger portfolio, unfiled prior years (a catch-up question before a form question), missing cost basis on old lots, or an election to be chosen consistently across many funds are scoped first. Mainstream consumer software does not prepare the form at all — TurboTax cannot file Form 8621.
Swissquote's tax statement and what it covers
Each year Swissquote can issue the Swiss e-tax statement (Steuerauszug / relevé fiscal) used for the cantonal return. It lists every security with its year-end value and the income it paid, which makes it a good source for Form 8938 and for a year-end mark-to-market value.
It is not enough on its own. It does not give the highest balance during the year that the FBAR asks for, and it does not carry the purchase-by-purchase history §1291 needs — export the transaction history for that. A US-domiciled ETF on the same statement is not a PFIC and needs no Form 8621.
Not sure which Swissquote holdings are PFICs?
Paste your ISINs into the free Swiss PFIC checker and see which trigger Form 8621. This is general information, not individualised tax advice.
From one fund to the whole case
What does your PFIC situation actually require?
Four questions — how many funds, for how long, whether Forms 8621 were ever filed, whether the returns are current — and a route into the preparation that fits, with what it costs. Nothing you answer leaves this page.
Free, no account, nothing you answer leaves this page. Open the full portfolio scanner
A routing read, not a determination. Whether a fund is a PFIC, whether an exception applies and what a prior year needs are established when the holdings are screened; the route above says where that happens and what it costs.
Authorities cited
- IRC §1297 — IRC §1297 — Definition of a passive foreign investment company
- IRS Form 8621 — About Form 8621 — Information Return by a Shareholder of a PFIC or QEF
- IRC §1291 — IRC §1291 — Interest on tax deferral (excess-distribution regime)
- IRS Form 8938 — About Form 8938 — Statement of Specified Foreign Financial Assets
- FinCEN Form 114 (FBAR) — Report of Foreign Bank and Financial Accounts (FBAR)
Primary sources (Cornell Legal Information Institute for the US Code and CFR; IRS.gov for forms, procedures, and treaty documents). This page is general information, not individualized tax or legal advice.
Atamatax provides tax preparation support and educational resources. This website does not constitute legal or tax advice.