Buying investment gold is exempt from VAT, as almost everyone knows. But what about when you sell it? That is when another tax comes in, and it is better to know about it beforehand so you avoid surprises: IRPF (Spanish personal income tax) on the capital gain.
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Buying and selling are not taxed the same
These are two separate tax events. Buying investment gold: no VAT. Selling gold at a profit: it is taxed in your income tax return as a capital gain, just as if you sold shares.
How the gain is calculated
The gain is the difference between the sale price and the price you paid (which is why you need to keep the invoices). The IRPF savings brackets apply to that gain:
- 19% up to €6,000
- 21% from €6,000 to €50,000
- 23% from €50,000 to €200,000
- higher brackets for larger amounts
If you cannot prove the price you paid, the tax authorities may treat the entire sale amount as the gain. Always keep your purchase invoices with their date and price: that is what lets you pay only on the real profit.
What if I sell at a loss?
If you sell below what you paid, you generate a capital loss that you can offset against other savings gains and so pay less tax.
Keys to an efficient sale
- Keep all your purchase invoices.
- Plan which year you sell in (you can spread sales out to avoid jumping into a higher bracket).
- Remember that physical investment gold has no withholding: you do the calculation yourself in your tax return.
You buy gold without VAT, but you pay IRPF when you sell. Knowing this in advance lets you plan and keep more of your profit.
Informative content, not tax advice. The IRPF brackets and rules can change each tax year; confirm the regulations in force at the time of the sale.
Frequently asked questions
Do you have to declare the sale of inherited gold?
Yes. When you receive it, its value at the date of death is taken into account for Inheritance Tax purposes. When you later sell it, the difference between the sale price and that acquisition value is a capital gain you must declare under IRPF, within the savings tax base.
Is VAT paid when selling investment gold?
No. Investment gold (bars and coins that meet the legal purity and weight requirements) is exempt from VAT, both when buying and selling it. Silver, by contrast, does carry VAT.
How much gold can I sell without declaring it?
There is no tax-free allowance for selling a small amount of gold: the gain counts whatever its size. Whether you have to file a return depends on all your income for the year, and if you file, the gain goes in it. Always keep the purchase invoice or the value at which it was inherited; without that supporting document, the tax authorities may treat the entire sale amount as the gain.
How is the sale of gold at a loss taxed?
If you sell below your acquisition price you generate a capital loss, which you can offset against other gains in the savings tax base for that year and so reduce the overall tax on your return.