Gold has long been a precious and highly sought-after asset, but it is not immune to various tax obligations. 

Whether you buy it, sell it, give it away, inherit it or pass it on to your heirs, you may be liable to gold (fat) tax. 

Let's take a closer look at the taxation associated with buying and selling gold and other precious metals.

Is buying gold taxed ?

Under article 298 sexdecies A of the French General Tax Code (CGI), there is no gold tax in France on investment gold.
 
Investment gold includes gold ingots, bars or wafers weighing more than 1 gram and with a purity equal to or greater than 995 thousandths.

Gold coins must meet certain criteria to be considered investment gold. They must have a purity equal to or greater than 900 thousandths and have been minted after 1800. 

In addition, these coins must have been or still be officially in circulation in their country of origin and be sold at a price that is not excessively higher than their gold content.

Is the sale of gold taxed ?

The sale of jewellery or precious metals is tax-free, provided that the unit cost of each piece of jewellery or object is less than €5,000. Two tax regimes apply to the sale of coins and ingots:

• Tax on Precious Metals (TMP)

TMP is a flat-rate tax equal to 11.5% of the sale price for investment gold coins and bars. To this must be added the CRDS, which is equivalent to 0.5% of the amount of the transaction.

• Capital gains tax (TPV)

The sale of precious metals is subject to the TPV, which is equivalent to 36.2% of the capital gain realised on the sale. 

However, this tax on gold only applies to the first two years of ownership. A 5% allowance is applied from the third year of ownership. 

This tax becomes zero after 22 years of ownership, which means that after this period you will no longer be subject to TPV when you sell your precious metals.

How are precious metals taxed ?

When it comes to precious metals passed on through gifts, inheritance or succession, taxation differs depending on the circumstances.

• Donation

When you make a gift of gold or precious metals, the value of these assets is taken into account when calculating gift tax. In accordance with the law of 17/08/2012, an allowance is granted depending on the relationship between the donor and the donee, over a period of 15 years. 

• Inheritance or succession

If you sell precious metals from an estate or inheritance, you can benefit from favourable tax treatment on real capital gains. You will need to provide a notarised certificate confirming your ownership status. 

This must include precise details, such as the date and value of the metals at the time of sale, as well as a detailed description of the metals.
 
In the specific case of investment gold, the deed of inheritance must specify the serial numbers of the bars, while for gold coins, the seal numbers must be specified.