Bonded Warehouse

A bonded warehouse (also customs warehouse or free warehouse) makes it possible to store goods - including physical precious metals such as gold and silver - 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 arise. Only on release into free circulation - that is, on actual import into the EU - do these charges become due.

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 Malta: Malta Customs). Operators require a corresponding authorisation and are obliged to keep proper records of all stored goods.

Types of warehouse at a glance

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

Advantages for precious metal investors

1. Tax deferral: Import VAT (18% on silver, platinum and palladium in Malta) becomes due only on withdrawal from the warehouse - not on purchase.
2. Flexibility: Precious metals can be traded, repackaged or reassigned within the warehouse without changing the customs situation.
3. International tradability: Bars can be sold to other buyers who may re-export the metal to a third country - in which case the EU charges are avoided entirely.
4. Secure storage: Professional customs warehouses are usually equipped with high-security vaults, insurance cover and complete inventory documentation.

Distinction from home storage

In contrast to home storage, physical control lies with the warehouse keeper, not with the investor. The investor holds a documented entitlement to a certain quantity of precious metal (with allocated storage, to identifiable, numbered pieces). With unallocated storage there is merely a contractual claim, which represents an increased risk in the event of the operator's insolvency.

Tax particularities

Investment gold is already exempt from VAT in the EU under the VAT Directive (2006/112/EC) - the bonded warehouse offers no additional VAT advantage here on a purchase within the EU. The benefit is felt above all with physical silver, platinum and palladium, which are subject to the full rate of VAT, as well as with metals imported from third countries (e.g. Switzerland, the USA). In Malta, gains from the sale of privately held precious metal are generally not subject to capital gains tax, as Malta levies no capital gains tax on the disposal of movable private property - the bonded warehouse changes nothing in this respect.

Note: This entry does not constitute tax or investment advice. Individual tax questions should be clarified with a tax adviser. You can follow the current gold price and silver price on this site at any time; the tax effect on a sale is estimated by the tax estimator.

Well-known locations and providers

Leading locations for precious metal bonded warehouses in Europe are Zurich (Switzerland, not EU customs territory), Singapore and London. Within the EU, specialised precious metal dealers and custodian banks operate authorised customs warehouses in cities such as Frankfurt, Munich and Amsterdam.

In brief

The bonded warehouse is a proven instrument for institutional and wealthy private investors who wish to store larger quantities of physical precious metals cost-effectively and with legal certainty, without immediately paying import charges. Anyone holding smaller quantities or valuing direct access, by contrast, is often better served by home storage or a bank safe deposit box.