Buying Gold for Your Business

Investing in gold as a business can be an interesting option for your company, whether it is to protect your business assets, diversify your balance sheet or build up your pension. On this page, we explain why investing in gold as a business can be interesting (from a tax perspective), for which types of businesses this is possible and how buying gold as a business at GoldRepublic works.

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Why buy gold for business purposes?

Buying gold through your company offers several advantages over buying gold privately:

Protection of business assets: Gold is seen as a safe haven in times of economic uncertainty or inflation. Business gold ownership can help stabilise the balance sheet.
Liquidity and risk management: Gold can be easily purchased, stored and resold, which provides flexibility in financial planning.
Tax advantages: For certain types of businesses, tax advantages are possible, such as deferring taxation.
Pension accrual: Many entrepreneurs use investment gold for business purposes as part of their pension.

In short: buying gold for business purposes is not only a way to protect your assets, but can also contribute strategically to your financial planning and pension provision.

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Tax rules for business gold

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At GoldRepublic, various types of businesses can purchase physical gold for business purposes. The tax treatment of business investment gold differs depending on the type of business:

Limited Company (Ltd) or Public Limited Company (PLC): Gold purchased through a company is listed on the balance sheet either as stock or as an investment asset. Depending on accounting treatment, value changes may affect the profit and loss statement. Realised gains upon selling the gold are subject to Corporation Tax in the relevant accounting period. Profits can be reinvested within the company.
Sole Traders and Partnerships: In these structures, gold is considered part of the business assets of the owner or partners. Gains arising from the sale or revaluation of gold are treated as business income and taxed accordingly through Income Tax.
Pension schemes and long-term planning structures: In certain cases, gold may be included within approved pension or long-term investment structures, provided they comply with UK regulations.

It is important to seek advice from a tax specialist or accountant prior to your business gold investment, so that you are fully aware of the tax rules that apply to your company.

Fees for Buying Gold as a Business

At GoldRepublic, the following rates apply if you invest in gold for business purposes:

Purchase of gold: 1% transaction costs upon purchase.
Sale of gold: 1% transaction fee on sale. You can sell your gold back to GoldRepublic (at any time) at the current gold price.
Storage: from 0.5% per annum (excluding VAT) for gold, depending on the chosen vault location.

Your gold is stored in highly secure, independent vaults in the Netherlands, Germany or Switzerland, whereby you retain 100% legal ownership.

How does buying physical gold from GoldRepublic work?

The process is simple and completely digital:

1. Create an account as a business customer with GoldRepublic.
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2. Register your business type and verify the company.
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3. Then purchase gold and select the desired quantity and vault location. You can also opt for our Gold Savings Plan, whereby you purchase commercial gold periodically for a fixed amount. This can be weekly, fortnightly or monthly.

Your gold is then stored in an independent, heavily secured vault, with daily inventory and external audits.

Asset managers have the option of managing multiple client portfolios via a single account, making it easy to purchase and store gold on a larger scale. With a multiple account trading environment, asset managers can trade and manage precious metals for multiple clients.

The asset manager can execute orders from the precious metals portfolio on behalf of the client. The client can receive separate login details to view their own portfolio.

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Start investing in gold for business today

Historically, gold has retained its value and often correlated with inflation. The price of gold has reached several record highs in recent years. Investing in gold for business purposes therefore offers stablewealth accumulation and protection against currency risk and economic volatility. By combining physical gold with other business assets, entrepreneurs can spread their risk and increase their financial security.

PERIOD CURRENCY / WEIGHT TYPE

Frequently asked questions

Is buying gold a wise choice?

Buying gold can be a wise choice, especially in times of economic uncertainty or inflation. Historically, gold has retained its value well and offers protection against declining currency purchasing power. In addition, physical gold is a tangible asset that you can keep outside the financial system...

What should I look out for when buying physical gold?

At GoldRepublic, you can buy whole gold bars or become a co-owner of a bar. If you become a co-owner, you pay NO bar reservation fees and you may be allocated anew bar every day. Legally, this makes no difference. You are still the(co-)owner of physical gold. The gold is delivered to you. You still know which bar you own (based on the bar number). Only in the event that, due to extreme circumstances, GoldRepublic is no longer able to provide its services, will you have to agree with the co-owners on what to do with the bar (sell or melt it down). If you reserve your own bar, this is not the case.

Are gold bars exempt from VAT?

Yes, investment gold is exempt from VAT in the United Kingdom and throughout the European Union. This exemption applies to gold bars with a purity of at least99.5% (24 carats). All gold bars you purchase through GoldRepublic must meet these conditions and are therefore exempt from VAT.

Do I have to declare gold as an asset to the tax authorities?

In the Netherlands, you must declare physical gold that you own as assets in box 3 of your tax return. The reference date used for this is 1 January of the tax year for which you are filing your return. This means you declare the value of your gold on 1 January, based on the gold price on that day. However, always check with your tax adviser to see what applies to your personal situation.

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