How to save tax in Germany by buying physical gold instead of ETFs

June 9, 2026 · 6 min read

Most investors in Germany do not know this: physical gold is completely tax free after a 12 month holding period. Gold ETFs are not. This single difference can save you thousands of euros. The German tax rules for gold: Physical gold (coins and bars): Held less than 12 months: Taxed as private sale under Paragraph 23 EStG. Profits up to 599 euros are tax free. Above that, your personal income tax rate applies (up to 45 percent). Held more than 12 months: Completely tax free. Zero percent. No Abgeltungsteuer. No income tax. Nothing. This is one of the best tax advantages available to German investors. Gold ETFs and ETCs: Xetra Gold (4GLD) and EUWAX Gold (EWG2LD) are classified as physical gold backed securities. The Bundesfinanzhof (German Federal Tax Court) ruled in 2015 that gains from these are treated like physical gold — tax free after 12 months. This is a huge advantage. However, other gold ETFs like iShares Gold Trust (IAU) or SPDR Gold (GLD) are classified as investment funds. Gains are subject to Abgeltungsteuer (26.375 percent flat tax) regardless of holding period. Silver is different: Physical silver purchases include 19 percent VAT (Mehrwertsteuer) in Germany. This makes buying physical silver bars expensive compared to ETFs. Silver ETFs do not have this VAT disadvantage. For silver, ETFs are often the better choice despite the tax treatment. Optimal strategy for German investors: For gold: Buy physical coins (Krugerrand, Maple Leaf, Vienna Philharmonic) or Xetra Gold (4GLD). Hold for 12 months minimum. Pay zero tax on gains. At current gold prices above 4000 dollars, a 20 percent gain on a 10000 euro investment saves you over 500 euros in taxes compared to a regular ETF. For silver: Buy a silver ETC or iShares Physical Silver ETF. Avoid physical silver due to 19 percent VAT. For gold miners: Stocks like Newmont (NEM) or the iShares Gold Producers ETF (IS0E.DE) are subject to normal Abgeltungsteuer (26.375 percent). But you get leverage to gold price movements and dividends. Where to buy physical gold in Germany: Online: Degussa, pro aurum, gold.de (price comparison), Philoro. In person: Degussa has stores in Hamburg, Berlin, Munich, Frankfurt, and other cities. What to track on TradewithAI: Monitor gold prices (XAU/USD) and gold miners (NEM, IS0E.DE) on your dashboard. Use RSI to time your purchases. Buying when RSI drops below 35 historically gives better entry prices than buying at all time highs. Remember: Gold is insurance, not a get rich quick scheme. Allocate 5 to 15 percent of your portfolio and hold for the long term.