Investing in gold and precious metals has long been a widely used strategy for diversifying a portfolio and protecting wealth. However, the regulatory and tax framework is evolving, introducing significant changes that may affect investment and disposal decisions. The 2024 Budget Law has introduced a new tax regime applicable to gold and precious metals.
What are the tax rules for the disposal of precious metals in raw form?
Capital gains arising from the disposal of precious metals in raw form (e.g. ingots, granules) are classified as “miscellaneous income” and are governed by the provisions of Art. 68 of the TUIR.
What changes with the 2024 Budget Law?
Up until 31 December 2023, in the absence of purchase cost documentation, the capital gain could be calculated on a lump-sum basis as 25% of the sale price. From 1 January 2024, this option has been abolished: where documentation is unavailable, the entire sale price will be treated as a taxable capital gain.
How does the new tax regime affect inherited assets?
The change is particularly penalising for those selling inherited precious metals. In many cases, no documentation of the historical cost exists, which means that the full consideration received is subject to tax as a capital gain.
Does the rule also apply to precious stones?
No, the legislation does not apply to precious stones such as diamonds. This creates a disparity in treatment compared with precious metals, which are subject to a more stringent tax burden.
Which assets are considered “precious metals” for tax purposes?
According to Ministerial Circular No. 165/98, precious metals include gold, silver and platinum in the form of ingots, bars, rods, buttons and granules. Worked metals (e.g. jewellery) and precious stones such as diamonds are not included.
What is the impact of these changes on taxpayers?
The new tax regime increases the burden on taxpayers, particularly in the event of a sale or when planning a generational wealth transfer. This underlines the importance of sound wealth planning in order to reduce the tax impact.
How can an independent financial adviser help?
An independent financial adviser can support you with wealth and tax planning, helping you to manage documentation and identify the best strategies to optimise taxation in the event of a sale or transfer of precious metals.
Conclusion
In light of the new tax provisions, it is essential to be informed and prepared to address the implications of precious metal disposals. Engaging an independent financial adviser provides professional support to make the right decisions and safeguard your wealth.