Selling Gold in Germany: When Is the Gain Tax-Free?
Gold is seen as a crisis-proof investment, and after the price rises of recent years many investors are sitting on decent gains. The good news first: physical gold is very tax-friendly for private individuals in Germany. But there are three rules you should know before you sell. You can check your specific case in the tax check of the gold value calculator.
Rule 1: After One Year the Gain Is Tax-Free
Physical gold, meaning bars, coins and jewellery, is not subject to the flat-rate withholding tax like shares or funds. Instead, § 23 (1) sentence 1 no. 2 EStG on private disposal transactions applies. A gain is only taxable if no more than one year lies between acquisition and disposal.
So if you bought a gold coin in October 2025, you can sell it from November 2026 without any tax, even if its value has doubled. What counts are the dates of the purchase and sale contracts. Keep your purchase receipts: if you can prove when you bought, you avoid discussions with the tax office.
Special case: inheritance and gifts
With inherited or gifted gold, you take over the previous owner's acquisition. If your grandmother bought her jewellery decades ago, the one-year period has long expired and the sale is tax-free. Inheritance or gift tax is a separate matter; it depends on the total value of the estate and the personal allowances.
Rule 2: The €1,000 Exemption Limit
If you sell within one year, the gain still remains tax-free if all private disposal gains of the calendar year total less than €1,000 (§ 23 (3) sentence 5 EStG). The limit was raised from €600 to €1,000 with effect from 2024. For jointly assessed spouses it applies to each partner separately.
The key word is exemption limit. Unlike an allowance, it works on an all-or-nothing basis. A gain of €999 remains tax-free. A gain of €1,000 is taxable in full at your personal income tax rate. If you are just above the limit, selling part of it in the following year can often save a lot.
An example: in spring 2026 you bought two ounces of gold for €6,800 and in autumn 2026 you sell at a buy-back price of €7,300. The gain of €500 is below the exemption limit, so no tax, provided you have no other private disposal gains. Had you sold for €7,900, the full €1,100 would be taxable.
Losses from private disposal transactions can only be offset against gains of the same kind, for example gains from selling other precious metals or a rented property within the holding period. They cannot be offset against employment income.
Rule 3: VAT When Buying, Investment Gold Is Exempt
VAT mainly affects the purchase. Under § 25c UStG the supply of investment gold is VAT-exempt. Investment gold means:
1. Bars or wafers of a weight accepted by the gold markets and a fineness of at least 995 thousandths.
2. Gold coins of at least 900 thousandths fineness, minted after 1800, that are or were legal tender in their country of origin and are normally sold at a price not exceeding the value of their gold content by more than 80%.
Gold jewellery does not qualify. It is charged VAT normally when purchased, which is one reason jewellery makes a poor investment: the purchase price is often far above the melt value, but only the metal counts when you sell.
Silver is never VAT-exempt. Silver bars carry 19% VAT. Dealers often sell silver coins under the margin scheme of § 25a UStG, where VAT is only due on the dealer's margin and not shown separately. As a private seller you do not charge VAT when you sell. But the higher purchase price affects your gain, and silver prices first have to rise by the tax before you are in profit.
What About Gold Securities?
The one-year rule only applies to physical gold and to securities that grant a genuine claim to delivery of gold. Certificates and funds that merely track gold are usually subject to the 25% flat-rate tax plus solidarity surcharge, regardless of holding period. If in doubt, check the product terms or ask a tax adviser.
Checklist Before You Sell
1. Find the purchase date and price; for inheritances, the deceased's date and receipts.
2. Check whether the one-year period has expired. If not: is the gain below €1,000?
3. Take other private disposal gains of the year into account.
4. Enter the current price and calculate the realistic buy-back value with the gold value calculator.
5. Get several offers and keep the sale receipts.
Note: this article summarises the German legal position in simplified form (as of September 2026) and does not replace tax advice.