Taxation of investment gold in Bulgaria 

Is tax paid when selling gold? 

When investment gold is sold by an individual, the question should not be reduced to a simple “yes” or “no”. For VAT purposes, investment gold is generally exempt, but for income tax it is necessary to assess whether a profit has been realized and how the specific transaction is treated according to the applicable practice of the NRA.

In practice, taxation is considered through the difference between:

• the selling price;
• the documented acquisition price;
• the realized profit, if any. 

For example, if you bought investment gold for BGN 5,000 and sold it for BGN 5,800, the potential profit is BGN 800. That is exactly why the purchase invoice is so important, it proves how much the gold was acquired for.

If there is no purchase document, proving the acquisition price may become difficult. In such cases, the owner’s risk is higher because they cannot easily prove their actual investment.

The safest approach before selling a larger amount of investment gold is to consult a tax specialist, especially if the transaction is high-value or not a one-off.

Sale of investment gold, how is it declared? 

When it comes to the sale of investment gold, the most important question is whether there is taxable income and how it should be reported in the annual tax return. When it is accepted that a profit has been realized from the sale, it may be subject to declaration by an individual.

The tax base is usually linked to the difference between:

• the selling price;
• the documented acquisition price;
• any recognized transaction costs. 

In practice, this means that the purchase invoice is extremely important. It proves when and at what price the investment gold was acquired, as well as its characteristics, form, weight and purity.

Example:

• purchase of investment gold: BGN 10,000;
• sale: BGN 11,200;
• potential difference: BGN 1,200. 

This exact difference may be considered income subject to declaration in the annual tax return, depending on the specific facts of the transaction and the current practice of the NRA.

For greater security when selling investment gold, it is advisable to keep:

• purchase invoice;
• sale document;
• bank documents when payment is made by account transfer;
• description of the gold, form, weight and purity. 

This creates clear traceability of the transaction and reduces the risk of future tax or administrative uncertainties. 

VAT on investment gold, exemption 

For VAT purposes, the regime for investment gold is relatively clear. According to EU Directive 2006/112/EC and the provisions of the Bulgarian VAT Act, including Art. 160a, supplies of investment gold under certain conditions are exempt from VAT.

For a product to be treated as investment gold, it must meet specific legal requirements. Most often, this includes:

• gold in the form of bars or plates;
• purity of at least 995 thousandths;
• certain investment coins;
• clearly established weight, form and fineness. 

It is important to distinguish between investment gold and gold items. Jewellery does not automatically fall under the VAT exemption regime, because the legal definition is mainly aimed at bars, plates and certain bullion coins of an investment nature.

The same applies to some numismatic and collector coins. Not every gold coin is considered investment gold. If its value mainly comes from collector rarity rather than gold content, a different tax regime may apply.

When buying investment gold, it is advisable to keep the invoice and product description, as these documents prove the weight, purity and origin of the asset in the event of a later sale or transport.

Declaration when buying over BGN 10,000 

When buying investment gold worth over BGN 10,000, questions often arise about declaring the funds and the requirements under the Measures Against Money Laundering Act. It is important to know that this is a standard procedure related to anti-money laundering rules, not an automatic sign of a violation or an audit.

According to the Act on the Restriction of Cash Payments, amounts of BGN 10,000 or more are usually paid by bank transfer. In addition, under certain circumstances, the trader may request identification, a declaration of the origin of funds or additional documents in line with the requirements of the Measures Against Money Laundering Act and internal customer due diligence rules.

This is a normal process for higher-value transactions, and its purpose is to ensure transparency and traceability of the payment.

For the buyer, the most important thing is to work with a reliable and registered trader who issues full transaction documentation. DealFin provides the necessary documents for every purchase of investment gold, including an invoice and product description, which makes future sale, declaration and proof of the asset’s origin easier.

Transporting gold outside Bulgaria 

When transporting investment gold outside Bulgaria, it is important to follow the declaration rules, as they depend on the value, form of the gold and direction of travel, whether to an EU country or outside the EU.

When carrying cash or cash-equivalent assets worth more than EUR 10,000 across the external border of the European Union, a declaration obligation may arise. In certain cases, investment coins or high-purity gold in the form of bars may be treated as “cash”.

There are also separate rules for transporting precious metals. In practice, a threshold of more than 37 grams of gold in raw or semi-finished form is often applied, where a declaration may also be required depending on the specific customs regime and travel direction.

Therefore, when transporting investment gold internationally, it is advisable to always keep:

• purchase invoice;
• document of origin;
• description of the gold;
• information on weight and purity;
• documents proving the value of the asset. 

This is especially important for bars and investment coins, because the invoice proves exactly what you are carrying, when it was acquired and what its value is in the event of a customs or border inspection. 

Disclaimer

This information is for educational purposes and does not constitute legal, tax or investment advice. Due to differences between legal texts, administrative practice and the specific facts of each transaction, consult a licensed tax adviser or lawyer when buying, selling or transporting investment gold. 

Buy investment gold legally and safely from dealfin.bg. We issue full documentation with every purchase.

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