Do I need to pay taxes when investing in gold? A quick overview by country
Investing in gold is traditionally considered a reliable way to preserve capital, but selling a bar or coin can trigger unexpected tax liabilities.
The widespread belief that gold is completely exempt from taxation is not true everywhere—each country applies its own rules.
How it works in different European countries
The European Union primarily regulates VAT: investment gold—bars and coins of established quality—is exempt from VAT in all EU countries.
However, income taxes on sales are determined by national laws and vary widely.
| A country | VAT on purchase | Sales tax | Peculiarities |
|---|---|---|---|
| Germany | 0% | 0% after 1 year of ownership | Very profitable for long-term investors |
| Austria | 0% | 27.5% of profits | Previously there was complete liberation |
| France | 0% | ~11% of turnover or ~36.2% of profit | Benefits for long-term ownership (22 years) |
| Italy | 0% | 26% of profits | Without documents, tax is on the entire amount |
| Poland | 0% | Up to 6 months - tax; after that, usually no tax | Tenure |
| Ukraine | Often 20% VAT | 6.5% of profit | Fixed system |
| Kazakhstan | 0% | 0% when selling to a bank/National Bank | The most favorable conditions |
| Belarus | Often 20% VAT | 13% of profits | Without documents, tax may be charged on the full amount |
Germany applies one of the most attractive rules: if the owner has held gold for more than a year, there is no sales tax. Short-term transactions are taxed at the general income level.
In Austria, changes have occurred in recent years: profits from the sale of gold are now considered capital gains and are taxed at a rate of 27.5%.
France offers two approaches: either a flat tax of around 11% of the total sale price, or a capital gains tax of 36.2% with annual reductions that disappear completely after 22 years of ownership.
Italy imposes a 26% tax on profits from gold sales. However, this rate can only be reduced with documents confirming the actual purchase price; without them, the tax may be levied on the entire sale amount.
In Poland , the rules are based on the period of ownership. If gold is sold within six months of the end of the month of purchase, the gain is subject to income tax. Longer holdings generally do not incur tax liability. As in other countries, supporting documents play a key role.
Ukraine: Flat Tax on Profits
Ukraine uses a simple scheme: when selling gold, profits are subject to a 5% personal income tax and a 1.5% military tax.
Without proof of purchase, the tax office may charge a tax on the entire transaction amount. Purchasing gold from commercial sellers is often subject to VAT, which increases the overall investment cost.
Kazakhstan: the most favorable conditions
Kazakhstan offers one of the most favorable systems for investors in physical gold. Gold bars are exempt from VAT, and their sale to a bank or the National Bank is tax-free. This allows private investors to easily enter and exit positions without losing a significant portion of their profits.
Belarus: Income tax and VAT on purchases
In Belarus, gold purchases may be subject to VAT at a rate of 20% unless the transaction is conducted through the National Bank. When selling gold, individuals pay a 13% income tax on profits. In the absence of proof of purchase, the tax may be calculated on the entire sale amount.
Although gold is often considered a "simple" investment instrument, its taxation rules can significantly impact your final income. In some countries, holding a gold bar for a certain period of time is tax-free, while in others, the tax rate may depend on the length of ownership, the chosen tax regime, or even the transaction format. One thing remains true everywhere: maintaining proof of purchase remains a crucial element of a sound investment strategy.
