Physical Gold: Coins and Bars
What counts as investment gold
Not all gold coins and bars are treated as or d'investissement for French tax purposes. The definition matters because it determines both the VAT treatment (investment gold transactions are VAT-exempt) and the applicable tax on gains. Under CGI Art. 298 sexdecies A:
- Bars, ingots, and wafers must weigh more than one gram and have a purity of at least 995 thousandths (99.5%).
- Coins must have a purity of at least 900 thousandths (90%), must have been minted after 1800, must have had (or still have) legal tender status in their country of origin, and must be habitually sold at a price that does not exceed by more than 80% the free-market value of the gold they contain.
The European Commission publishes each year a list of coins that qualify as investment gold for the following year. In France, around 20 coins are routinely listed, led by the napoléon (the 20-franc gold piece), which represents the bulk of physical gold transactions in France. Coins not on the list may still qualify if they meet the statutory criteria above. Coins and bars that do not meet the investment gold definition are treated either as collectibles or as industrial gold — and taxed accordingly.
Buying, storing, and selling physical gold
Physical gold can be purchased from specialist dealers, specialist brokers, and certain bank branches. When buying through a bank, the investor can choose to take physical delivery — bearing the storage and insurance costs — or leave the gold on deposit in the bank's vaults on a non-allocated account. Online specialist platforms also offer purchase with home delivery or custodial storage. For coins to be readily saleable, they should be undamaged and ideally kept in sealed pouches. For bars, the purity criteria are considered satisfied when the bar carries a hallmark or is accompanied by an assay certificate (bulletin d'essai). When selling to a professional, the seller must sign a written sale contract and all price-influencing factors must be clearly displayed.
Transaction controls and anti-money-laundering obligations
For transactions exceeding €1,000 with a non-regular client, the professional must verify and record the buyer's or seller's identity (C. mon. fin. Art. R 561-10). All professionals holding precious metals must keep a livre de police (police register) recording all purchases, sales, receipts, and deliveries. For transactions above €15,000, identity records must be retained for six years (CGI Art. 298 sexdecies E). Professional gold buyers must also file an annual declaration of retail gold purchases with the tax authorities by 31 January of the following year (CGI Art. 1649 bis).
Despite these controls, Décret 86-744 du 21 May 1986 restored the principle of anonymity for gold transactions. The tax administration cannot require banks and financial institutions to disclose the files of clients who have conducted anonymous gold transactions since that date. Anonymity survives even where anti-money-laundering verification of identity was required at the transaction itself.
Taxation of Physical Gold Sales
The default regime: the 11.5% forfait tax
Sales of investment gold by French-domiciled individuals are subject by default to the taxe forfaitaire sur les métaux précieux at a rate of 11% of the gross sale price, plus 0.5% CRDS — producing an effective rate of 11.5% for French residents (CGI Art. 150 VI and 150 VM). The tax is due regardless of whether the seller made a gain or a loss. It is in principle collected by the French-domiciled financial intermediary handling the transaction, or declared on Form 2091 within one month of the sale. A 25% penalty applies to tax evasion, plus late-payment interest.
The option for ordinary capital gains taxation
Instead of the forfait tax, the seller may irrevocably elect to be taxed under the ordinary capital gains regime for movable property (CGI Art. 150 UA) on Form 2092. The option is available only where:
- The coins or bars are individually identifiable (serial-numbered bars, coins in identifiable sealed pouches, or registration on a securities account where physical delivery was not made); and
- The seller can prove the acquisition date and price by invoice or succession/donation extract — or, for holdings of over 22 years, can establish duration of ownership by any means without needing to prove the exact price.
Under the ordinary regime, the gain is the disposal price (net of selling costs) minus the acquisition price (including buying costs). An annual abatement of 5% per year of ownership beyond the second year reduces the taxable gain. After 22 years of ownership, the gain is fully abated and income tax is zero. The remaining gain is taxed at 19% income tax plus 17.2% social charges (total 36.2%). Losses may not be deducted.
Held more than 22 years: The gain is fully abated → income tax = 0. Even accounting for residual social charges, this is almost always less than 11.5% of the full sale price. Always elect the ordinary regime in this case.
Inherited recently and sold near inheritance value: The acquisition price is the inheritance value, close to the current market price → gain is minimal → tax on a very small base → almost always less than 11.5% on the full price. Elect the ordinary regime.
Significant gain, less than 22 years' holding: The forfait is likely more efficient, since 11.5% on the gross price compares well against (19% + 17.2%) × abated gain. Calculate both before deciding — the break-even point depends on the gain as a percentage of the sale price and years of holding.
Scenario A — 10-year holding, major gain: 50 napoléons purchased in 2015 for €4,000 total. Sold in 2025 for €12,000.
Ordinary regime: Gain = €8,000. Abatement: 5% × 8 years beyond year 2 = 40%. Taxable: €4,800. Tax = 36.2% × €4,800 = €1,738
→ Forfait is cheaper. Do not elect ordinary regime.
Scenario B — 25-year holding: 2 kg gold bar purchased in 2000 for €18,000. Sold in 2025 for €140,000.
Ordinary regime: 25 years held → 23 years beyond year 2 = 115% → fully abated. Income tax = €0. Social charges also fully abated. Total = €0
→ Elect ordinary regime. Saves €16,100.
Scenario C — Inherited last year, sold at market: Gold bar inherited in 2024, inheritance value €22,000. Sold in 2025 for €22,500.
Ordinary regime: Gain = €500. Abatement: 0 (held <2 years). Tax = 36.2% × €500 = €181
→ Elect ordinary regime. Saves €2,407.
Gold ETCs: Paper Gold on Euronext
Gold ETCs (Exchange Traded Commodities) are zero-coupon undated obligations backed by physical gold held by a custodian bank. Each new security issued requires prior delivery of the corresponding quantity of physical gold to the custodian — the gold backing is segregated from the issuer's balance sheet, so no credit risk in the traditional sense.
Gold ETCs are listed and traded on Euronext in a continuous cash market. Each unit typically represents one tenth of a Troy ounce of gold. Their exchange price directly tracks the spot gold price (London LBMA fixing) in the unit's denomination currency. No specialised account is needed: orders are placed through an ordinary securities account. The issuer provides continuous bid-ask quotes, ensuring liquidity.
Currency risk and quanto certificates
Because gold is priced in US dollars and gold ETCs are listed in euros, the investor bears euro/dollar exchange rate risk. A fall in the dollar against the euro reduces the euro value of the holding even if the spot gold price in dollars has risen. Investors who wish to eliminate this currency risk can use certificats quanto — gold certificates that include a dollar/euro currency hedge. Their price reflects exclusively the gold price in the currency of denomination, with management fees incorporating the hedging cost.
Tax treatment of gold ETC gains
The gain on the sale of a gold ETC — the difference between the sale price and the acquisition price — is taxed as a capital gain on the disposal of securities (plus-value de cession de valeurs mobilières) under CGI Art. 150-0 A. The PFU flat rate of 12.8% income tax plus 17.2% social charges applies (total 30%), or the progressive scale on global election. The ordinary gains regime for precious metals does not apply. Duration abatements are only available for instruments acquired before 1 January 2018. Losses are deductible against same-nature capital gains in the usual way.
Auriferous Funds
Auriferous funds are ordinary collective investment vehicles (OPCVMs or FIAs) whose assets are invested predominantly in listed equities of gold-mining companies (typically South African, Chinese, Canadian, and Australian) and mineral exploration companies. Some funds diversify into equities related to other precious metals or broader commodity exposure.
The connection between the fund's performance and the gold price is real but indirect and leveraged. Mining company shares are more volatile than gold itself, and subject to risks beyond the gold price: rising extraction costs as deposits are depleted, stagnation in world production, political and regulatory risk in mining jurisdictions, and currency risk. Most auriferous funds hedge some currency exposure, but the cost of hedging reduces performance.
The tax treatment of auriferous fund units is identical to that of any other OPC: gains on disposal are taxed as securities capital gains under CGI Art. 150-0 A (PFU 30% or progressive scale), and distributions of income are taxed as dividends or fixed-income products depending on the nature of the underlying income. The forfait tax for precious metals does not apply.
Three Routes Compared
| Feature | Physical gold | Gold ETCs | Auriferous funds |
|---|---|---|---|
| What you own | Gold coins or bars (or custody interest) | Undated bonds backed by allocated gold | Units in a gold-mining equity fund |
| Counterparty risk | None (direct ownership) | Very low (gold allocated to custodian) | Moderate (equity issuer risk) |
| Gold price correlation | Direct (1:1) | Direct (minus fees) | Indirect (leveraged, more volatile) |
| Currency risk (EUR investor) | Yes (gold in USD) unless local pricing | Yes, unless quanto version used | Yes (mining equities in multiple currencies) |
| Liquidity | Good for standard coins/bars; specialist market | High (continuous Euronext trading) | High (OPCVM daily redemption) |
| Storage / custody cost | Yes (physical) or bank fee (custodial) | Included in management fee | Management fee |
| Default tax regime | Forfait 11.5% on gross price | PFU 30% on net gain | PFU 30% on net gain |
| 22-year full exemption available? | Yes (on election of ordinary gains regime) | No | No |
Whether you are assessing the forfait vs ordinary gains election on a physical gold portfolio, structuring a gold ETC position, or planning the succession of a coin collection, our guides cover the full French framework for precious metals and tangible asset investment.
Book a ConsultationThis article covers French investment gold (or d'investissement) as defined in CGI Art. 298 sexdecies A and the applicable tax regimes under CGI Art. 150 VI to 150 VM (forfait) and CGI Art. 150 UA (ordinary capital gains on movable property). Gold objects that do not meet the investment gold definition — including coins minted before 1800 (treated as collectibles) — are subject to the art/antiques forfait rate of 6% (6.5% for French residents) and the same option rules. Gold jewellery is treated as a bijou under the same art/antiques regime. References are correct to the best of the author's knowledge as of the date of publication.
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Key Legal References
Investment gold definition: bars/ingots/wafers ≥1 gram, purity ≥995 thousandths; coins purity ≥900 thousandths, minted after 1800, legal tender status in country of origin, habitually sold at price not exceeding 180% of free-market gold content value. European Commission annual qualifying coin list. Non-qualifying gold: collectibles or industrial gold regime
Investment gold transactions VAT-exempt (no option to charge VAT)
Identity verification obligation for precious metals transactions: transactions >€1,000 with non-regular clients require identity verification and recording
Record retention for precious metals transactions: 6 years for transactions >€15,000; livre de police (police register) mandatory for all professionals holding precious metals
Annual declaration of retail gold purchases by professionals: by 31 January of the following year; listing each seller’s identity
Default tax on physical investment gold for French residents: taxe forfaitaire at 11% precious metals + 0.5% CRDS = 11.5% of gross sale price; due regardless of whether a gain was made; collected by intermediary or declared on Form 2091 within 1 month of sale; 25% penalty for evasion
Option for ordinary capital gains regime on movable property (instead of forfait): irrevocable election on Form 2092; requires individually identifiable coins/bars AND proof of acquisition date and price (or duration of ownership over 22 years by any means); gain = disposal price minus acquisition price; 5% annual abatement per year beyond year 2; full exemption after 22 years; income tax 19% + social charges 17.2% on abated gain; losses not deductible; Form 2048 M with payment within 1 month of sale
Gold ETC and auriferous fund gains taxed as securities capital gains: PFU 12.8% income tax + 17.2% social charges (total 30%) or progressive scale on global election; losses deductible against same-nature gains; duration abatements only for instruments acquired before 1 January 2018; ordinary precious metals gains regime does not apply
