Bonded Warehouse

A bonded warehouse (also customs warehouse or customs storage facility) allows goods – including physical precious metals such as gold and silver – to be stored as if they were still outside the customs territory of the European Union. As long as the metals remain in the warehouse, no import duties and no import VAT are incurred. These charges only become due upon release for free circulation – i.e. upon actual import into the EU.

Legal Basis

The legal basis is the Union Customs Code (UCC), Regulation (EU) No 952/2013, supplemented by the Delegated Regulation (EU) 2015/2446 and the Implementing Regulation (EU) 2015/2447. Customs warehouses must be authorised by the national customs authorities (in Germany: the Federal Customs Administration). Operators require the corresponding authorisation and are obliged to maintain proper records of all stored goods.

Overview of Warehouse Types

For private investors, the public customs warehouse, operated by specialised precious metal dealers or banks, is the most relevant option.

Advantages for Precious Metal Investors

1. Tax deferral: Import VAT (19% on silver, platinum, and palladium) only becomes due upon withdrawal from the warehouse – not at the time of purchase.
2. Flexibility: Precious metals can be traded, repacked, or re-labelled within the warehouse without changing the customs status.
3. International tradability: Bars can be sold to other buyers who may re-export the metal to a third country – in which case EU duties are avoided entirely.
4. Secure custody: Professional customs warehouses are generally equipped with high-security vaults, insurance cover, and comprehensive inventory documentation.

Distinction from Home Storage

Unlike home storage, physical control rests with the warehouse keeper, not the investor. The investor holds a certified entitlement to a specific quantity of precious metal (in the case of allocated storage, to identifiable pieces with matching serial numbers). With unallocated storage, only a contractual claim exists, which carries increased risk in the event of the operator's insolvency.

Tax Specifics

Investment gold is already exempt from VAT throughout the EU under § 25c UStG – the bonded warehouse offers no additional VAT advantage for purchases within the EU. The benefit arises primarily for physical silver, platinum, and palladium, which are subject to the full VAT rate, as well as for metals imported from third countries (e.g. Switzerland, USA). Gains from the private sale of precious metals remain subject to German income tax law (§ 23 EStG, speculative holding period). The bonded warehouse does not change this.

Note: This entry does not constitute tax or investment advice. Individual tax questions should be clarified with a tax adviser. The current gold price and silver price can be tracked at any time on this site; the Tax Estimator provides an estimate of the tax effect upon sale.

Well-Known Locations and Providers

Leading locations for precious metal bonded warehouses in Europe are Zurich (Switzerland, outside the EU customs territory), Singapore, and London. Within the EU, specialised precious metal dealers and custodian banks operate licensed customs warehouses in Frankfurt, Munich, and Amsterdam, among others.

In Brief

The bonded warehouse is a proven instrument for institutional and high-net-worth private investors who wish to store larger quantities of physical precious metals cost-efficiently and in a legally secure manner without immediately incurring import duties. Those holding smaller quantities or who value direct access are often better served by home storage or a bank safe deposit box.