Tax Treatment of Physical Gold in the U.S. and Portugal
Physical gold and other precious metals are subject to distinct tax rules in the United States and Portugal, which may affect U.S. citizens holding such assets while residing abroad.
In the United States, gold is classified as a collectible under the Internal Revenue Code. Long-term capital gains (on assets held for more than one year) are taxed at a maximum rate of 28%, rather than the standard long-term capital gains rates of 15% or 20%. The cost basis includes the purchase price and may also include broker commissions and storage costs, provided those expenses are directly associated with the acquisition or sale.
With respect to Portugal, we learned from local partners CASTILHO during this month's workshop that capital gains realized by individuals on the sale of physical gold and other precious metals are not subject to taxation, regardless of whether the assets are held in Portugal or abroad. This treatment is understood to apply to both NHR (Non-Habitual Residents) and non-NHR individuals, provided the activity does not fall within the scope of a commercial or professional business.
For individuals subject to U.S. tax law who reside in Portugal, this cross-jurisdictional divergence may require careful coordination, particularly when disposing of assets categorized as collectibles under U.S. law.
Areia Global works closely with Portuguese counsel to assist clients in evaluating the U.S. tax implications of their global asset holdings and investment strategies.
This communication is for informational purposes only and does not constitute legal, tax, or investment advice. Areia Global is a U.S. based law firm providing U.S. federal tax advice and does not provide Portuguese legal or tax advice. Any references to Portuguese law are based on guidance received from local counsel. Individuals should consult with qualified advisors in each relevant jurisdiction before making any decisions regarding asset ownership or tax planning.