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Tax & law

The holding period for gold and silver: tax-free after twelve months

Hold physical gold or silver for more than twelve months and the gain is free of tax when you sell. The basis is §23 EStG. Sell within the period and the gain is taxable — but a €1,000 exemption limit per calendar year applies across all private disposals combined.

As at July 2026 5 min. read MetalReserve editorial team

In brief

The period is twelve months and starts the day after acquisition.
After that, gains are entirely free of income tax, however large.
Within the period a €1,000 exemption limit applies — reach it and the entire gain becomes taxable.
With several purchases over time, FIFO decides which pieces count as sold.

When the clock starts and stops

What counts is the date of acquisition, not of payment or delivery. In practice the tax authorities use the invoice date. The period runs out after exactly twelve months; sell on the same calendar day one year later and it has not yet been met.

An example: buy on 12 March 2026, sell from 13 March 2027 onwards — the gain is then tax-free. A sale on 12 March 2027 would still be taxable.

Keep purchase invoices permanently. Without proof of the acquisition date you cannot demonstrate to the tax office that the holding period was met.

How a gain inside the period is taxed

What is taxable is the difference between the sale price and the acquisition cost, less expenses such as shipping or assay fees. The gain is taxed at your personal income tax rate, not at the flat withholding rate.

Case
Tax
Declaration
Held for more than 12 months
none
usually no entry required
Under 12 months, gains under €1,000
none (exemption limit)
Keep your records
Under 12 months, gains from €1,000
personal tax rate
Annex SO
Sold at a loss
none
can be offset against other disposal gains

Important: the €1,000 is an exemption limit, not an allowance. At €999 of gain you pay nothing; at €1,000 you pay tax on the full amount. All private disposals in the year count towards that total — including crypto gains.

Partial sales and repeat purchases

If you buy over several years, you hold stock with different acquisition dates. Sell only part of it and you have to allocate which pieces are affected. The recognised method is FIFO: the oldest pieces count as sold first — usually the better outcome for tax, because the period is most likely to have been met there.

With serial-numbered bars you can even document the allocation piece by piece. Note the serial number alongside the invoice date and the calculation becomes unambiguous.

What crypto buyers also need to know

If you paid for the gold with Bitcoin or another cryptocurrency, two periods run in parallel: one for the coins you spent, and a fresh one for the gold you acquired. The swap itself is a disposal of the crypto; for the gold, the twelve-month clock starts anew on the day of acquisition.

Common questions

How long must I hold gold for the sale to be tax-free?

More than twelve months. Once that holding period under §23 EStG has passed, gains from selling physical gold and silver are entirely free of income tax, however large.

Does the period apply to silver too?

Yes, the same twelve-month period applies to silver, platinum and palladium. The difference from gold lies only in VAT at the moment of purchase, not in income tax at the moment of sale.

How high is the exemption limit?

€1,000 per calendar year across all private disposals combined. It is an exemption limit: reach it and the entire gain becomes taxable.

What records do I need?

The purchase invoice with the date and amount, plus the sale receipt. With several purchases, a traceable FIFO schedule; for bars, ideally the serial number.

Legal position as at July 2026 for private individuals with unlimited tax liability in Germany. General information, not tax advice.

Read on

Swapping crypto for gold: taxes
What happens to your crypto holding when you swap.
Investment gold and VAT
§25c UStG and why silver is treated differently.
Bars and coins
With serial number and invoice, for a complete record.