Tax on Selling Gold in New Zealand
New Zealand has no general capital gains tax, but Inland Revenue's view is that gold bought for the dominant purpose of selling it produces taxable income, and that gold's lack of any yield strongly points to that purpose. The profit is then taxed at your marginal rate (10.5% to 39%) and a loss is deductible. No holding period makes the gain tax-free, and the bright-line test applies to residential land, not gold.
Facts checked 30 October 2026 · Not financial, legal or tax advice
At a glance
| What you sell | How the gain is taxed | Notes |
|---|---|---|
| Gold bars, bullion coins, gold certificates | Income at your marginal rate (10.5%–39%) if bought mainly to sell; IRD says that is the usual case. | You must show clear evidence of a different purpose. |
| Jewellery bought to wear | Not taxed: property bought for private use and enjoyment is outside the rule. | IRD's gold statement doesn't deal with jewellery specifically. |
| Silver | Same test; IRD's own example taxes a silver sale. | Fine silver (99.9%+) is GST-exempt, like fine gold (99.5%+). |
| Gold funds and derivatives | Not covered by IRD's gold statement. | Can still be taxed under other rules. |
How gold gains are taxed
- Section CB 4 of the Income Tax Act 2007 treats amounts from disposing of personal property as income if it was acquired for the dominant purpose of disposal. A profit motive isn't needed.
- IRD's statement QB 17/08 applies this to physical gold bars and coins, certificates and units giving ownership of physical gold. It says gold's lack of income while held "strongly indicates" a disposal purpose, and that calling it a hedge, store of value or long-term investment describes a motive, not a purpose.
- The onus is on you: a claim that resale wasn't the dominant purpose needs "clear and compelling evidence". Cases where tax didn't apply involved silver bought to give to children and gold held in a portfolio where a sale was only a remote possibility.
- There is no holding period: holding gold for decades doesn't make the profit tax-free if the purpose test is met. The bright-line test covers residential property only.
- Income tax rates from 1 April 2025: 10.5% to $15,600, 17.5% to $53,500, 30% to $78,100, 33% to $180,000 and 39% above.
- Fine metal (gold at least 99.5% pure, silver 99.9%) is generally exempt from GST, so there's usually no GST on investment bullion.
Reporting
- Include taxable gold profits as other income in your IR3 individual tax return for the year of sale.
Losses
- If the gold was bought to sell, its cost is deductible in the year of sale, so a sale below cost gives a deductible loss.
- Storage, insurance and interest on money borrowed to buy the gold may also be deductible.
Tax on Selling Gold in New Zealand: FAQ
Do you pay tax on selling gold in New Zealand?
Usually yes, if you bought it mainly to sell it later. Inland Revenue treats the profit as income taxed at your marginal rate, and says gold's lack of any yield strongly suggests it was bought to sell. Jewellery bought to wear isn't taxed.
Does the bright-line test apply to gold?
No. The bright-line test only covers residential property. Gold is taxed under the purpose-of-disposal rule, which has no holding period.
How long do I have to hold gold in NZ to avoid tax?
There is no holding period. What matters is your dominant purpose when you bought it, not how long you kept it.
Sources (6)
General information about the rules for individual investors, checked October 2026. Tax depends on your circumstances and residence; check with the tax authority or an adviser. Not tax advice.