Do you have to pay taxes when you sell precious metals?

The Internal Revenue Service (IRS) classifies gold and other precious metals as “collectibles”, which are taxed at a long-term capital gains rate of 28%. Earnings on most other assets held for more than a year are subject to long-term capital gains rates of 15 or 20%. However, the IRS considers physical quantities of metal to be “collectibles.” For collectibles, such as coins, works of art and ingots, the standard tax rate is 28%. As a result, owning physical gold or owning funds that in turn hold physical gold means you can pay a higher maximum capital gains rate of 28%.

It is important to be aware of potential Gold IRA scams when investing in gold. Now, let's look at the main tax you pay when you sell your precious metals, the capital gains tax. But when it comes to selling your gold coins, in most countries you'll have to pay capital gains tax. It's a commission on the profits you make from selling your precious metals. As with VAT rates for silver, capital gains tax rates vary from country to country.

For example, Italy has a 12.5% rate for private investors, while the United Kingdom imposes a capital gains tax on precious metals ranging from 10% to 28%, depending on their level of income. However, in the United Kingdom, it should be noted that some countries such as Switzerland, Belgium or Germany do not apply capital gains tax to precious metals. However, here too, certain taxes may apply, such as customs duties or capital gains tax in your country, if, after selling your precious metals products, you distribute the funds to another country. In the second year after purchasing your gold products, the capital gains tax rate drops by 5% each year.

This means that, after 22 years, your gold will be tax-free in France. Just remember to keep your proof of purchase document. And since gold is an investment asset, when you sell your gold and make a profit, it's taxed as capital gains.