Precious metals are subject to taxation in most countries, because governments prefer to consider them as taxable goods or property (not money) and see these high-value items as a lucrative source of revenue.
In most countries capital gains tax applies when precious metals are sold at a profit.
[5] Collector coins that do not meet the requirements for tax-exempt investment gold are subject to the margin scheme under Section 25a of the German VAT Act.
Capital gains from the sale of gold held as private assets are tax-free under Art.
[8] However, persons who regularly trade in gold can be classified as traders, in which case their profits are taxable.
From 2024/2025, the exemption limit is GBP 3,000, above which tax rates of 10% to 20% apply, depending on the investor's income situation.
However, many states grant exemptions for investment gold that meets certain criteria, such as a minimum fineness of 995 thousandths.
Short-term gains on gold held for up to one year are subject to the individual income tax rate, which can be as high as 37%.
For private investors, a fixed tax rate of 20% applies, based on the difference between the selling and acquisition costs.
[12] The exemption applies to gold bullion with a purity of at least 995 thousandths and to coins that are or have been recognized as legal tender and whose selling price does not exceed the material value by more than 50%.
Long-term investments held for more than 12 months benefit from a 50% tax allowance for individuals and trusts.