Tax Treatment
Investment Gold Taxation
Investing in Gold represents today one of the most convenient investments on the market. The purchase of physical gold, in fact, is exempt from VAT, and substantially translates into an absence of taxes in the purchase, possession and resale phase.
Direct taxes
The sale of Gold by an individual may result in the achievement of taxable income where a capital gain occurs. These consist of the difference between the consideration received at the time of the sale and the cost or purchase value of the gold sold.
For the sale of precious metals, in the absence of the documentation of the purchase cost, the capital gains are determined in an amount equal to 25% of the sale price.
At the time of drafting these notes, a substitute tax of 26% is payable on any capital gains, which is paid in the tax return relating to the year in which the consideration is collected.
If, on the other hand, losses were to be recorded, there would be no taxes to be paid, indeed, the others would also be reduced. Capital gains from the sale of gold are taxed net of losses of the same category.
General criteria:
Criterion in the absence of documentation of the purchase cost:
Indirect taxes
VALUE ADDED TAX (VAT)
The sales of investment gold are exempt from value added tax.
Investment gold means:
- Gold in the form of ingots or plates with a weight accepted by the gold market, greater than 1 gram, with a purity equal to or greater than 995 thousandths, represented by securities or not.
- Gold coins with a purity equal to or greater than 900 thousandths, minted after 1800, which are or have been legal tender in the country of origin, sold at a price that does not exceed 80% of the value on the free gold market contained therein.
TAXES ON SUCCESSIONS AND DONATIONS
The tax on inheritance and donations that had been repealed have been reintroduced into the national tax system, with some changes compared to the previous legislation.
With the reintroduction of the inheritance tax, the obligation to submit the declaration of inheritance returned into force. With this premise, the presence of investment gold in the deceased’s hereditary assets triggers the obligation, on the part of the heirs, to take into account the value corresponding to the gold received.
Value that contributes to the formation of the inheritance tax according to the following rates:
Spouse and relatives in a straight line
Exempt up to 1 million euros for each beneficiary then, beyond this value, 4%
Brothers and sisters
Exempt up to 100.000 € uro for each beneficiary then, beyond this value, 6%
Relatives and kindreds
6%
Different subjects
8%
In the event of a subsequent sale of the gold by the heir, the taxable capital gain at a rate of 26% must be determined by the difference between the price for the sale of the gold and the value attributed to the gold in the declaration of succession.
