Tax Estimator — Calculate Tax on Precious Metal Sales
Gains from selling physical precious metals (coins, bars) are completely tax-free after a 1-year holding period.
This applies to gold, silver, platinum, and palladium — as long as they are held as physical possessions (not for ETFs, ETCs, or certificates!).
If sold within the speculation period (< 1 year), the gain is taxed at the personal income tax rate.
Since 2024, an exemption limit of 1,000 € (previously 600 €) applies to gains from private sales (Section 23 para. 3 sentence 5 EStG).
Exemption limit ≠ Tax-free allowance!
With an exemption limit, if exceeded, the entire gain becomes taxable, not just the portion above 1,000 €. With 1,001 € in gains, you pay tax on 1,001 € — not on 1 €.
The exemption limit applies to all private sales combined in a calendar year (including e.g. cryptocurrencies, art, collectibles).
- 1. Keep purchase receipts — Document purchase date and price (invoice, bank statement).
- 2. Follow the FIFO principle — With multiple purchases: the first items bought are considered sold first.
- 3. Offset losses — Losses from private sales can be offset against gains of the same type.
- 4. Physical ≠ Paper — ETFs/ETCs on precious metals are subject to flat-rate withholding tax (25%), not Section 23 EStG.
- 5. Silver special case — Buying silver incurs 19% VAT (differential taxation possible). Gold is VAT-free.
* Xetra-Gold: delivery claim = physical gold (BFH VIII R 4/15). Check other ETCs individually.
What do you actually receive from a dealer after deducting the margin?
Simulate a monthly savings plan — returns with real historical prices.
§23 EStG — Private Sales Transactions
§23 of the German Income Tax Act (EStG) governs the taxation of so-called private sales transactions. This section is the central legal basis for the tax treatment of gains from the sale of physical precious metals such as gold, silver, platinum, and palladium. The law fundamentally distinguishes between real estate (10-year period) and other assets — physical precious metals fall under the latter with a one-year period.
Why do precious metals fall under §23 EStG?
Physical precious metals are classified for tax purposes as "other assets" within the meaning of §23 para. 1 sentence 1 no. 2 EStG. This means: gold bars, investment coins such as the Krugerrand or Silver Philharmonic are treated the same as artworks, vintage cars, or rare wines — as movable objects of private assets whose sale within the speculation period is taxable.
The decisive factor is the nature as a physical object. Only physically held precious metals fall under §23 EStG. Financial products such as standard ETCs or ETFs that merely track the precious metal price are subject to withholding tax under §20 EStG — with significantly different consequences (more on this in the section Physical vs. Paper Gold).
Distinction from commercial trading
§23 EStG applies exclusively to the private sphere. Anyone who trades precious metals with a profit-making intent that goes beyond occasional private sales may be classified by the tax office as a commercial dealer. In this case, not §23 EStG but §§15 ff. EStG apply — with the consequence that gains are subject to income tax and trade tax, and the tax exemption after one year no longer applies.
- ◆ High trading frequency — anyone conducting dozens of transactions per month risks being classified as commercial
- ◆ Debt financing — systematic purchasing on credit for resale indicates a commercial character
- ◆ Organized distribution — own online shop, eBay power seller, or regular booth sales at fairs
- ◆ Rule of thumb — occasional purchases and sales from your own holdings are unproblematic; around 20-30 transactions per year becomes critical
Practical tip: Anyone who occasionally rebalances their precious metal portfolio (e.g. selling silver, buying gold) remains in the private sphere. It only becomes problematic when short-term trading with profit intent is the recognizable pattern — such as daily buying and reselling during price fluctuations.
The Speculation Period in Detail
The speculation period for physical precious metals is exactly one year (365 days) — it is not based on the calendar year. What counts is the period between the acquisition date and the sale date. The decisive factor is the binding transaction, i.e. the date of the legally effective purchase contract (for online orders, the day of the order confirmation; for dealer purchases, the purchase date on the invoice).
Specific examples of period calculation
- ◆ Purchase: 01/15/2025
- ◆ Sale: 01/16/2026
- ◆ Holding period: 366 days → gain is tax-free
- ◆ Purchase: 01/15/2025
- ◆ Sale: 01/14/2026
- ◆ Holding period: 364 days → gain is taxable
Leap year note: The period is always exactly one year within the meaning of §108 BGB in conjunction with §§187, 188 BGB. For a purchase on Jan 15, 2025, the period ends at the close of Jan 15, 2026 — a sale from Jan 16, 2026 is tax-free. A leap year does not change this, as the period is calculated by calendar (not in days).
Pitfalls in period calculation
- ◆ Counter transactions (cash purchase) — the purchase date is the day you bought and paid for the precious metal at the dealer in person. Keep the receipt carefully.
- ◆ Online purchase with advance payment — the relevant date is the order confirmation (contract conclusion), not the delivery date or the receipt of funds by the dealer.
- ◆ Inheritance and gifts — for gifted or inherited gold, you assume the acquisition data of the previous owner. The speculation period therefore runs from the original purchase date of the donor/testator.
- ◆ Pooled storage — for precious metals in a bonded warehouse or pooled custody (e.g. BullionVault), the FIFO principle applies: the first acquired shares are considered sold first.
Exemption Limit vs. Tax-Free Allowance — The Crucial Difference
The tax exemption limit for private sales transactions is often confused with a tax-free allowance — with potentially costly consequences. Since the Annual Tax Act 2024, it is 1,000 euros per calendar year (previously 600 euros). The distinction is not academic but has immediate financial implications.
Exemption Limit vs. Tax-Free Allowance — Comparison
Exemption Limit (applies to §23 EStG)
- ◆ If exceeded, the entire gain is taxed
- ◆ 999 € gain → 0 € tax
- ◆ 1,001 € gain → tax on 1,001 €
Tax-Free Allowance (e.g. saver's lump sum)
- ◆ Only the exceeding portion is taxed
- ◆ 999 € income → 0 € tax
- ◆ 1,001 € income → tax on only 1 €
Calculation example: Why 1 € makes the difference
Suppose you sold gold within the speculation period in 2025 with a gain of 1,050 € and your personal tax rate is 35 %:
If it were an allowance
Tax on 50 € (1,050 − 1,000) × 35 % = 17.50 €
Actually (exemption limit)
Tax on 1,050 € (entire gain) × 35 % = 367.50 €
Strategic tip: If your total gain from all private sales is slightly above 1,000 €, it may be worthwhile to defer some sales to the next calendar year. This way, both years stay below the exemption limit and the entire gain remains tax-free.
Aggregation of all sales transactions
The 1,000-euro exemption limit applies not per transaction and not per asset type, but to the sum of all private sales gains in a calendar year. This includes:
- ◆ Physical precious metals (gold, silver, platinum, palladium)
- ◆ Cryptocurrencies (Bitcoin, Ethereum, etc.) — also Section 23 EStG
- ◆ Art, antiques, collectibles (e.g. rare watches, vintage cars)
- ◆ Foreign currency gains (e.g. from forex trades)
Warning: If you realize e.g. 600 € gain from a gold sale and 500 € from a Bitcoin sale in the same calendar year (both within the speculation period), the total is 1,100 € — and you must pay tax on the entire amount. However, losses from other private sales transactions may be offset.
Physical vs. Paper Gold — Tax Differences
The tax treatment of precious metal investments depends significantly on the form in which the precious metal is held. The difference between physical possession and financial products can determine tax rates from 0 % to 26.375 % — a difference that quickly reaches five figures for larger amounts.
Tax Classification Overview
| Investment Type | Legal Basis | Taxation |
|---|---|---|
| Physical Bars & Coins | §23 EStG | Tax-free after 1 year |
| Xetra-Gold (ETC with delivery claim) | §23 EStG | Tax-free after 1 year* |
| EUWAX Gold II | §23 EStG | Tax-free after 1 year* |
| ETCs without delivery claim | §20 EStG | 25 % + soli = 26.375 % |
| Precious Metal ETFs (Funds) | §20 EStG / InvStG | 25 % + soli, no tax exemption |
| Mining Stocks | §20 EStG | 25 % + soli on dividends & capital gains |
| Cryptocurrencies | §23 EStG | Tax-free after 1 year |
* BFH ruling VIII R 4/15 (Xetra-Gold) or VIII R 7/20: ETCs with a documented delivery claim for physical gold are treated the same as physical gold for tax purposes.
The Xetra-Gold ruling in detail
The Federal Fiscal Court (BFH) ruled in its landmark decision of May 12, 2015 (Az. VIII R 4/15) that gains from the sale of Xetra-Gold are tax-free after the one-year speculation period. The reasoning: Xetra-Gold certifies a claim for delivery of physical gold. The investor thus economically acquires a tangible asset — even though delivery is rarely claimed in practice.
This ruling does not automatically apply to all ETCs. The decisive factor is whether the respective ETC grants a legally enforceable delivery claim for physical gold. ETCs that merely synthetically replicate the gold price (e.g. via swaps) continue to be subject to withholding tax. If in doubt, check the Key Information Document (KID) of your ETC.
Silver ETCs: The BFH ruling explicitly refers to gold ETCs. The legal situation for silver ETCs is less clear, as no comparable supreme court ruling exists to date. Silver ETCs with a delivery claim could be treated analogously — but a binding clarification is still pending. If in doubt, consult a tax advisor.
Documentation Requirements — What the Tax Office Wants to See
When selling precious metals within the speculation period, you bear the burden of proof vis-a-vis the tax office. This means: you must be able to prove when you bought at what price. Without receipts, the tax office can estimate the acquisition cost at 0 € — the entire sale proceeds would then be taxable gain.
Required Documents
- ◆ Purchase receipts / invoices — with date, product description, weight, fineness, and purchase price. For online purchases: order confirmation and payment proof.
- ◆ Sales receipts — dealer purchase receipt or sales confirmation with date and proceeds.
- ◆ FIFO documentation — for multiple purchases of the same product, you must traceably demonstrate which pieces are considered sold according to the First-In-First-Out principle.
- ◆ Storage proofs — for bonded warehouses or bank safe deposit boxes: contracts and statements proving continuous possession.
- ◆ Bank statements — as supplementary proof for payment flows (purchase and sale).
Retention Periods and Digitization
Tax-relevant documents should be kept at least until the expiry of the assessment limitation period. In practice, this means: at least 4 years after filing the tax return for the relevant year (in cases of tax evasion, the period extends to 10 years). Since the speculation period itself is one year, a retention period of at least 6 years from the purchase date is recommended.
- ◆ Create digital copies — scan all purchase receipts and store them in a cloud backup. Thermal receipts fade within a few years.
- ◆ Photos with serial numbers — photograph bars and coins with visible serial numbers and store the images together with the purchase receipt.
- ◆ Spreadsheet or portfolio app — maintain a running overview with purchase date, product, weight, fineness, purchase price, and any sale dates.
Tip for missing receipts: If you have lost purchase receipts, bank statements, email confirmations, or witness statements may serve as alternative proof. In the worst case, the tax office can make an estimate — which typically works to your disadvantage. For counter transactions (cash purchases), the purchase receipt is often the only means of proof; therefore, keep it particularly carefully.