Taxes on gold in Switzerland

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Gold taxes applicable when buying and owning precious metal

Physical precious metals are special material assets valued by private individuals and institutions for wealth building or as protection against potential loss of purchasing power, and high-value gold is very important here. The same applies to tax on purchases and ownership, though applicable regulations vary according to the products involved. Gold jewellery, for example, is taxed differently to gold coins and gold bars, with some further differences between these classic assets.

Disclaimer: This article provides basic information about gold taxation in Switzerland. It does not claim to be complete, and does not replace advice offered by an accountant or tax law specialist. Further information can also be obtained from Swiss customs or the Federal Tax Administration (FTA).

Several types of taxes are significant for gold owners and gold buyers and can affect the value of such products in different ways – VAT being one particular example. In addition, gold ownership can affect the levy of wealth tax on Swiss citizens. Travellers should also pay attention to import taxes when crossing the border, though, unlike other European countries, a tax on profits (capital gains tax) will not apply in Switzerland. Below you will find an overview of the various taxes which may apply to gold in Switzerland.

VAT on gold and other precious metals

Most precious metal purchases are subject to VAT, and this particularly applies to all white metals such as silver, platinum and palladium. Regardless of the raw material used, any purchase of jewellery products is always liable to VAT, a measure which also includes wristwatches. In Switzerland, the VAT rate is a moderate 8.1%, while in the EU and the rest of Europe, this same tax is levied at 17-25%.

However, anyone who invests their capital in silver coins or silver bars can potentially save on VAT. This is because, provided they are subsequently stored in a Swiss duty-free warehouse, defined white-metal investment products (including platinum and palladium) can be purchased VAT-free. Find out more about this in our article about purchasing silver ex-VAT.

Among precious metals, physical gold is a special case, because the purchase of bullion gold is generally VAT-exempt. By definition, this means gold bars and gold coins used exclusively to build wealth and to preserve the value of savings. Essentially, all gold products that can be traded VAT-free are very clearly defined. You can learn more about gold you can buy VAT-free in the section “What is bank gold?” further down this page.

Gold and income tax

Swiss citizens who own physical precious metal investments must declare these assets on their annual tax return. This is because, subject to the value of such assets, any wealth tax levy (see next section) will take account of existing material assets. So the regulation applies not only to precious metal bars and coins, but also to high-value jewellery or luxury wristwatches which, unlike items like wedding rings, are not regarded as jewellery for everyday wear.

If you are unsure which precious metals should be declared in your tax return, you can always ask your accountant or tax advisor. In principle, it is a good idea to retain the purchase receipts for pieces of jewellery as well as coins and bars made of gold or silver as a simple means of determining their value beyond doubt.

Wealth tax on gold ownership

In contrast to many other European countries, Swiss wealth tax is a common requirement for those domiciled in Switzerland. Although wealthy individuals residing in Switzerland are thus obliged to pay this tax, it is not possible to provide blanket information on the amount because this is determined by individual Swiss cantons and municipalities. So gold taxation can vary from canton to canton, as can the amount of any annual allowances. In addition, all material assets are generally taken into account when assessing the tax, including any precious metal holdings. However, the value determination is not based on the original purchase price of each product, but on its value at the end of the previous tax year.

Tip: The current value of any bars or coins at the end of each calendar year can be established via the Direct Federal Tax price lists. These lists of precious metal prices are published annually by the Federal Tax Administration and serve as a guideline for tax valuation purposes. When on site, using the advanced search facility and selecting “Coins and precious metals” will take you direct to the information you require.

Tax on profits from selling your gold?

In Germany and other EU member states, private gold sales are subject to a capital gains tax if the sale takes place within twelve months of the initial purchase. Any profit must then be declared on your income tax return, although some allowances usually apply. The sale of physical gold and gold securities is only tax-free after a one-year holding period. This allows the EU to create additional incentives for long-term investment in gold products.

In Switzerland, however, private individuals are not taxed on the profits of such transactions. So Swiss residents can sell their precious metals at any time, regardless of the date of purchase, without having to pay tax on any resultant profit. However, special regulations still apply to commercial precious metal dealers.

Import tax when crossing the border into Switzerland

Anyone wishing to import gold into Switzerland may have to pay import taxes – which usually means a VAT levy. Whether any taxes are due depends on the type of gold products and where they were originally purchased. For example, people living in Switzerland generally do not have to pay tax on bullion gold they have bought abroad when crossing the border on their return to Switzerland. You can find out more about this topic in our article about taxes on importing gold into Switzerland.

What is bank gold?

Given that the terms “bank gold” and “bullion gold” are often used synonymously, it is important for gold buyers to understand which products are actually classified as bullion gold (also described as investment gold) if they wish to benefit from VAT-free purchases while remaining exempt from import tax. Bars are much easier to classify than coins: The Precious Metals Control Act specifies that gold bars must have a fineness of at least 995/1000, and cast or minted gold ingots must bear the stamp of a recognised tester or smelter – and that’s it.

For gold coins, the matter is completely different – the coin fineness, for example, must be at least 900/1000. Article 44 (german) of the Swiss Value Added Tax Ordinance explains which gold coins are VAT-exempt. Thus, customs tariff numbers 7118.9010 and 9705.0000 (concerning collector coins of numismatic value) indicate that state-minted gold coins are exempt from tax. The regulations also stipulate that bullion coins must be, or must originally have been, legal tender in the country of issue. Unlike classic gold bars, most gold coins also carry an embossed face value.

The following table summarises the most important internationally traded one-troy-ounce gold coins which are considered bank gold. You can also find further background information about bars and coins made from precious metal in the corresponding article.

Gold coin	Country	Fineness	First minted	Weights options in troy ounces	Trivia
American Eagle	US	916,7	1986	1, 1/2, 1/4, 1/10 oz
Aus. Kangaroo	AU	999,9	1986	10, 2, 1, 1/2, 1/4, 1/10, 1/20 oz and 1 kg	The world’s largest coin is the Australian Kangaroo produced in 2011 with a weight of around 1 tonne.
Aus. Koala	AU	999,9	2007	2, 1, 1/2, 1/4, 1/10, 1/25 oz
Britannia	GB	999,9 (bis 2012 917,0)	1987	5, 1, 1/2, 1/4, 1/10, 1/20 oz
China Panda	CN	999,0	1982	1, 1/2, 1/4, 1/10, 1/20 oz and 1g, 3g, 8g, 15g, 30g
Goldvreneli	CH	900,0	1897	2,903 g, 5,807 g , 29,032 g
Helvetia	CH	900,0	1883	5,807 g
Krügerrand	ZA	916,6	1967	50, 5, 1, 1/2, 1/4, 1/10, 1/20, 1/50 oz
Libertad	MX	999,0	1981	1981 1, 1/2, 1/4, 1/10, 1/20 oz
Lunar Serie I, II	AU	999,9	1996	10, 2, 1, 1/2, 1/4, 1/10, 1/20 oz and 10, 1 kg
Maple Leaf	CA	999,9 (bis 1981 999,0)	1979	1, 1/2, 1/4, 1/10, 1/15, 1/20 oz	5 pieces of the 100 kg Big Maple Leaf were produced in 2007. One of them was later stolen from the Bodemuseum in Germany.
Sovereign	UK	916,7	1817	36,61 g, 14,64 g, 7,322381 g, 3,661 g
Wiener Philharmoniker	AT	999,9	1989	1, 1/2, 1/4, 1/10, 1/25 oz	The Big Phil is a 1000 oz (31.103 kg) version of the Philharmonic produced in 2004.

Overview: Taxes on gold in Switzerland

Taxpayers in Switzerland must pay taxes on the purchase or possession of gold under certain conditions.
These levies are primarily VAT and wealth tax.
The purchase of bullion gold / bank gold is exempt from VAT. Gold jewellery and white precious metals (silver, platinum, palladium), on the other hand, are always subject to VAT. However, white metals can still remain tax-free if stored in a bonded warehouse.
Gold ownership must be declared on your annual tax return. Depending on the size of these assets and the canton in which you reside, gold investments may be subject to a wealth tax.
In Switzerland, private individuals are not taxed on profits from the sale of gold.
Travellers may have to bear in mind Switzerland’s gold import tax. However, some allowances still apply and bank gold is exempt from this tax.