Taxes on Gold: Everything You Need to Know Before Selling Your Gold Bars

Gold is a precious metal that can be bought and sold in various forms, such as bars, coins, or certificates. The tax treatment of gold depends on the form in which it is held and the length of time it is held.
 

For physical gold, such as bars and coins, no tax is due at the time of purchase. However, upon resale, individuals may choose between two tax regimes: the flat-rate tax or the capital gains tax regime.
The flat-rate tax amounts to 11% of the total transaction amount, broken down into the Precious Metals Tax (TMP) at 10.5% and the Social Debt Repayment Contribution (CRDS) at 0.5%. In this case, any capital gain is not taken into account in the tax calculation.
 

The capital gains tax system, on the other hand, applies to the difference between the sale price and the purchase price. If the capital gain is zero or negative, no tax is due. If it is positive, the tax rate is 36.2%, divided between a 19% capital gains tax and 17.2% in social security contributions. In this case, the taxable capital gain is subject to a deduction based on the length of ownership, amounting to 5% per year of ownership starting from the third year. After 22 years of ownership, the sale of physical gold is completely exempt from tax.
It is important to note that the capital gains tax regime applies only if certain conditions are met. The seller and the buyer must be the same person, and the coins or bars sold must be the same ones that were purchased. The bars must have a unique identification number, and the coins must be kept in their sealed packaging, along with the invoice.
 

With regard to paper gold—such as certificates, trackers, shares in gold mining companies, or equity funds invested in gold mining companies—no tax is due at the time of purchase. However, transaction fees may be charged by the broker, depending on the intermediary and the terms of the contract.
 

When selling paper gold, the tax treatment depends on the tax regime chosen by the individual. Since January 1, 2018, capital gains have been taxed by default under the Single Flat-Rate Levy (PFU) at a rate of 30%. However, the individual may opt for the income tax (IR) system; in this case, gains are taxed at the individual’s marginal tax rate (TMI), and social security contributions are due starting with the first euro of gain.