Holding Gold and Silver in Spain: Tax, Reporting and Wealth Planning for Expats

More expats in Spain are adding physical gold and silver to their portfolios as a hedge against inflation, currency swings and market shocks. Before you do the same, it is vital to understand how Spain taxes precious metals, when you have to declare them, and how they sit alongside other assets for wealth and succession planning.

How Spain taxes gold and silver

Spain does not treat gold and silver as a special “untaxed” safe haven; they are simply another category of assets within the tax system. If you are tax resident in Spain, the value of your precious metals is counted as part of your worldwide wealth for wealth tax and, where applicable, the state solidarity tax on large fortunes. Non-residents generally only face Spanish wealth tax on assets located in Spain, which can include bullion held here.

When you sell gold or silver at a profit, the gain is normally taxed as savings income under the standard Spanish capital gains brackets. The taxable gain is the difference between what you paid (including allowed costs such as premiums and commissions) and what you receive on sale, and is added to your other savings income for the year. Losses can sometimes be used to offset other gains, but only within the rules for savings income in the year or subsequent years.

Wealth tax and regional differences

Spain applies a national wealth tax framework with regional variations, plus a national “solidarity tax” that currently applies to very high net worth individuals. Precious metals are included in your net wealth at their market value on 31 December each year, alongside property, portfolios and cash. Resident taxpayers have a general exemption, plus an additional allowance for the main home, but autonomous regions can raise allowances or apply discounts.

Some regions, such as Madrid and Andalucía, have applied a 100% relief on regional wealth tax, although high net worth residents may still be caught by the state solidarity tax above certain thresholds. Others, like the Valencian Community or Catalonia, maintain wealth tax with their own scales and allowances. That means the true tax cost of holding gold and silver can vary significantly depending on where in Spain you are resident, even when the bullion is stored abroad.

VAT rules for buying gold and silver

Spain follows EU rules that differentiate between “investment gold” and other precious metals for VAT purposes. Investment gold that meets specific purity criteria and is in the form of recognised bars or certain coins can often be bought without VAT, or under a special regime where VAT is effectively not charged to the final investor. Ordinary jewellery or non-qualifying gold items do not benefit from this treatment.

Silver and other precious metals do not enjoy the same exemption and are generally subject to 21% VAT when bought in Spain. For many investors, this extra cost on silver makes it more attractive to hold for the very long term or to purchase via specific dealer schemes, rather than trading frequently. In all cases, invoices and purchase documents should be kept carefully to prove cost price and VAT treatment later for tax and resale purposes.

Residents, non-residents and where metals are held

For Spanish tax residents, the starting point is that your worldwide assets are potentially within the scope of wealth tax and, above certain levels, solidarity tax. That means gold and silver bars kept in a UK, Swiss or other foreign vault are still part of your taxable base in Spain if your net wealth exceeds the relevant thresholds. Non-residents, by contrast, are only exposed on assets that are considered located in Spain, such as bullion stored in Spanish vaults.

This residency rule lets some non-resident owners hold precious metals outside Spain without bringing them into the Spanish wealth tax net, provided they remain genuinely non-resident for tax purposes. However, anyone who spends significant time here, has their main home and family in Spain, or otherwise meets the criteria for tax residency should not assume they can simply ignore metals held abroad. In practice, the tax authorities look at the overall pattern of your life, not just passport stamps.

Reporting obligations: Modelo 720 and similar forms

One of the most common questions is whether physical gold and silver stored outside Spain must be reported on Modelo 720, the “declaration of assets and rights abroad”. Under the current rules, Model 720 focuses on foreign bank accounts, securities, funds, life insurance and real estate, not physical bullion held in a vault or safe. Precious metals are generally treated like other tangible movable assets, such as art or jewellery, and are not reportable on this form solely by virtue of being held abroad.

However, if your gold or silver is held through certain financial products or custodial structures that look more like financial accounts, the underlying value could end up reportable under the financial assets category. Separately, anyone holding significant crypto assets in foreign platforms faces reporting through Modelo 721, which is why some investors like the simplicity of metals instead. In all borderline cases, professional advice is essential, especially given the high penalties historically associated with incorrect reporting.

Inheritance and succession planning with bullion

Precious metals can play an awkward role in Spanish succession planning if they are not documented properly. For inheritance and gift tax calculations, gold and silver are part of the estate and must be valued at market prices at the date of death or transfer, then allocated between heirs according to the will or local intestacy rules. Lack of records can make it harder for heirs to prove purchase price, origin of funds and legitimate ownership, particularly if the metals are stored offshore.

Spanish inheritance and gift tax is largely regional, and some autonomous communities offer generous allowances for spouses and direct descendants, which can substantially reduce or even eliminate tax on inherited metals. Still, keeping a clear inventory, purchase invoices and storage certificates is vital so that heirs can comply with Spanish tax, avoid disputes, and, if necessary, sell part of the holding to meet the tax bill without fire-selling everything.

Practical issues: storage, insurance and liquidity

Holding bullion raises practical questions beyond the tax code. Storing significant value in a home safe in Spain can increase security risks and may not be fully covered by standard home insurance policies. Professional vaulting in Spain or abroad offers better protection and documentation, but adds annual fees that should be weighed against the size of the holding and your overall strategy.

Liquidity is usually good for standard bars and widely recognised coins, but spreads and dealer commissions vary. If you intend to use gold and silver as a long-term insurance policy rather than a trading vehicle, you need to be comfortable with price volatility and the possibility that, in some years, metals underperform other assets even after tax. A diversified portfolio, rather than an all-in bet on bullion, tends to fit better with the Spanish tax framework and most expats’ tolerance for risk.

Where gold and silver fit in an expat’s plan

For many expats in Spain, precious metals are best treated as one part of a broader mix that includes property, pensions, cash and regulated investments. Gold and silver can help reduce exposure to any single currency or banking system, but they do not generate income and can introduce extra administrative and storage costs. The Spanish tax system also makes it clear that metals are not invisible; they sit alongside your other assets for wealth, capital gains and inheritance purposes once you are resident.

Anyone considering building a larger position in bullion while living in Spain should take personalised tax and legal advice before moving funds or relocating metals. Getting the residency, reporting and regional wealth-tax angle right at the start can save serious money and stress later, especially if you end up moving regions within Spain or passing assets on to the next generation.