Bed And Breakfast Deal

In finance, the term bed and breakfast deal refers to a practice in which securities are sold at the close of a trading day and repurchased at the opening of the following trading day.

The term also refers to the practice of selling securities at the close of a tax year and repurchasing the same shares at the opening of the new tax year. This practice is common in countries which levy capital gains taxes but have annual tax-free capital gains allowances. By selling securities at the end of the year, investors can claim the tax-free capital gains allowance, after which they repurchase the securities which they wish to hold.

In Switzerland, private investors do not pay capital gains tax on securities investment returns.

More on this topic:
Swiss stock broker comparison
Swiss taxes on capital gains explained
 

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Special offers for Moneyland users

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Swiss Bank

Bank WIR Bankpaket Top

  • Free account & card

  • No exchange fees for foreign payments (interbank exchange rates)

  • 24 ATM withdrawals worldwide per year free of charge

Swiss Broker

Saxo Bank Special Offer

  • Special offer: Reimbursement of brokerage fees up to CHF 200 for 90 days

  • Licensed Swiss bank (FINMA)

  • Free expert research and trading signals

Swiss Trading Platform

Cornèrtrader Special Offer

  • Special offer: particularly favorable conditions for Moneyland users

  • No custody account fees for shares

  • Swiss online bank with FINMA license

Swiss digital bank

Alpian

  • CHF 100 welcome bonus

  • Favorable foreign exchange rates

  • Multi-currency account with Visa card (CHF, EUR, USD, GBP) 

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  • No prior knowledge necessary: Advice from experts

  • One of the 10 largest asset managers worldwide

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Editor Daniel Dreier
Daniel Dreier is editor and personal finance expert at moneyland.ch.