The fixed-rate tax that applies to the proceeds of the sale (gain or not) has penalised physical gold as an investment product in France for a long time. The rate (including CRDS at 0.5%) has been fixed at 11.5% since 1 January 2018.
Since 1 January 2006, investors can now opt to apply the capital gains from tangible assets regime if they are able to justify the acquisition price and date*. Thus, so-called “investment” gold sellers may, optionally, choose to pay 36.2% on the capital gains (since 1 January 2018) with a discount of 5% per year from the third year of detention.
The option for the investor to exercise this option on the capital gains from tangible assets has three major benefits:
Choosing, depending on the obtained capital gains and retention period, the best taxation system (flat tax of 11.5% on the capital or 36.2% on the actual capital gains),
Total exemption after 22 years,
No taxation in the event of a loss in value regardless of the detention period.
* Attention: to be entitled to exercise the taxation option on the actual appreciation when re-selling gold coins, it is advisable at the time of purchase not to request delivery unless they are delivered in a sealed bag whose identification makes it possible to make a link between the latter and the invoice (e.g. sealed CPoR Currency bags since October 3, 2016).
Increased solidarity tax on wealth (ISF) for bullion and gold coins as of 1 January 2018 due to the ISF being replaced by the IFI (wealth tax).
Since 1 January 2014, non-residents are now exempt, subject to certain conditions, from a flat-rate tax of 11% on the sales and export of precious metals in accordance with the provisions set out in Article 150 VJ 5 ° of the French General Tax Code.