Taxes & Law

The Anti-Money Laundering Law (GwG) obliges precious metal dealers to identify their customers above certain thresholds and to report suspicious transactions.

The cash limit for gold purchases sets the threshold above which dealers must verify and document the buyer\'s identity under anti-money laundering law.

When transporting precious metals across borders, EU declaration requirements apply from EUR 10,000 in value, along with import VAT and customs rules when entering from third countries.

The FIFO principle (First In, First Out) stipulates that when selling precious metals, the units acquired first are always deemed to have been sold first for tax purposes.

The holding period refers to the time between the acquisition and disposal of an asset, after which private capital gains in Germany remain tax-free.

Identity verification is the legally required identification process when buying or selling precious metals above certain cash transaction thresholds under anti-money laundering law (AML).

Investment gold is tax-privileged gold (bars and certain coins) whose purchase is exempt from VAT in the EU.

The margin scheme is a special VAT procedure under which dealers calculate tax only on the trading margin (the difference between purchase and selling price), not on the full selling price.

An over-the-counter cash transaction is the anonymous purchase or sale of precious metals, securities, or other assets against cash payment at a counter ("across the table"), without the buyer providing identification.

A private disposal transaction within the meaning of § 23 of the German Income Tax Act (EStG) occurs when a private individual sells assets – including physical precious metals – at a profit within the statutory holding period, making that profit subject to income tax.

The speculative holding period refers to the time after which private disposal gains from the sale of precious metals and other assets remain tax-free in Germany.

The tax-free allowance of 1,000 euros (until 2022: 600 euros) exempts private capital gains from precious metal sales within the speculative holding period from income tax, provided the total profit from all private disposal transactions in the calendar year does not exceed this amount.

Investment gold is exempt from VAT in the EU provided it meets certain minimum requirements for fineness and form.

The purchase of silver (bars, coins, industrial silver) is subject to VAT in Germany – unlike investment gold, which is VAT-exempt.

Germany's flat-rate withholding tax of 25 % taxes capital income at a flat rate, but does not apply to physical precious metals – instead, the speculative holding period under § 23 EStG applies.