A comparison of taxation on precious metals

The taxation of precious metals varies significantly from country to country. Whilst capital gains are generally tax-free for private individuals in Switzerland, Germany and Austria have clear holding periods of one year. At the same time, the rules regarding VAT and wealth tax also differ.

Precious metals are regarded as a stable component of a long-term asset structure. In addition to security and storage, tax treatment is crucial, as it directly influences the actual return. Key factors here include taxation at the time of purchase and sale, as well as any ongoing taxes. Factors such as holding period, storage location and classification as private or commercial trading also play a central role.

Investment gold is generally exempt from sales tax or VAT on purchase in Switzerland, Austria and Germany, provided the legal criteria are met. Silver, platinum and palladium, on the other hand, are generally subject to sales tax in all three countries. In Switzerland, the tax can be deferred if the metal is stored in a duty-free warehouse until delivery.

🇨🇭 Switzerland

In Switzerland, investment gold is exempt from VAT, whereas silver, platinum and palladium are generally subject to VAT. However, if a duty-free warehouse is used, the tax is usually only payable upon delivery.

A significant advantage lies in capital gains: profits from the sale of precious metals are tax-free for private individuals, regardless of the holding period. Tax liability only arises if the activity is classified as commercial trading.

At the same time, precious metals are subject to wealth tax, the structure of which varies from canton to canton. The basis is the respective market value at the end of the year.

For investors, this means that Switzerland offers tax advantages, particularly for long-term wealth accumulation, as capital gains are not taxed; however, ongoing wealth taxation must also be taken into account.

🇦🇹 Austria

In Austria, investment gold is also exempt from VAT, whilst other precious metals are subject to tax.

Profits from the sale of physical precious metals are subject to income tax within one year. After a holding period of twelve months, these profits are tax-free. In addition, there is an allowance of €440 per year. If this is exceeded, the entire profit is taxable.

There is no wealth tax in Austria.

For investors, this means that tax advantages arise primarily from a long-term holding period, whilst short-term profits are subject to tax.

🇩🇪 Germany

In Germany, investment gold is exempt from VAT. Silver, platinum and palladium are generally subject to VAT, although the margin scheme is sometimes applied in the retail sector.

Profits from private sales are taxable within one year. After this period, they remain tax-free. Since 2024, an allowance of €1,000 per year has applied. If this is exceeded, the entire profit is taxable.

No wealth tax is currently levied.

For investors, this means: As in Austria, the holding period is decisive, although the higher allowance offers additional leeway.

Conclusion: Where are precious metals most attractive from a tax perspective? A direct comparison shows that Switzerland offers tax advantages on capital gains, as these are generally tax-free for private individuals, whereas Germany and Austria require a one-year holding period. At the same time, Switzerland levies a wealth tax, which does not apply in Germany and Austria. Which solution makes sense in individual cases depends on investment strategy, investment horizon and place of residence.

Legal notice: This article is intended solely for general information purposes and does not constitute legal or tax advice. A binding assessment requires qualified tax or legal advice.