Investment gold coins in Bulgaria: buying and VAT
When a gold coin is VAT-free “investment gold” and when it is a collector coin with 20% VAT
BulgarianCoins editorial team 3 min read
Gold is a popular way of saving in Bulgaria, and coins are one of its most convenient forms. It is important, however, to distinguish investment gold, which is bought without VAT, from collector gold coins, on which you pay both VAT and a premium for rarity and design.
What the law says
Supplies of investment gold are exempt from VAT under Art. 160 of the Value Added Tax Act. This is a common regime throughout the European Union. Under Art. 160a, investment gold is:
- Bars and wafers of at least 995/1000 fineness and in weights accepted by the gold markets.
- Gold coins that meet all of the following conditions: fineness of at least 900/1000; struck after 1800; are or have been legal tender in their country of origin; are sold at a price that does not exceed the market value of the gold they contain by more than 80%.
Every year the European Commission publishes a list of gold coins that are considered investment gold. A coin that is not on the list but meets the conditions is also exempt.
The familiar investment coins
The most widespread investment coins in Bulgaria are foreign – the Austrian Philharmonic, the Canadian Maple Leaf, the South African Krugerrand, the British Sovereign. They are bought from banks and specialist dealers at a price close to the value of the gold.
And Bulgarian gold coins?
The historical ones – 10, 20 and 100 leva of 1894 and 1912 – formally meet the conditions for fineness (900/1000), year and legal-tender status. But their market price is usually far above the value of the gold in them. For example, the 20 leva 1912 contains about 5.8 g of pure gold, yet it is offered for thousands of euros. Such a coin is traded for its numismatic value.
BNB gold commemorative coins are sold by the bank itself at a premium far above 80% over the metal. So VAT is not exempt on them, and the price is set by mintage and demand. An example is “St Ivan of Rila”, 100 euro 2026 – with 8.64 g of gold and an issue price of €1,508.
How to compare
On the page of every gold coin in our catalogue we show the metal value at the current spot price. Compare it with the issue price and the market price:
| If the price is... | The coin is... |
|---|---|
| up to about 10% above the metal | an investment coin |
| 10–80% above the metal | an investment coin, but expensive – check why |
| more than 80% above the metal | a collector coin |
What to check when buying
- A receipt or invoice with a clear description of the coin, its fineness and weight.
- Weight and diameter – compare with the official data. See Simple tests for a genuine coin.
- The price against the spot price of gold on the day of purchase.
- The buy-back price – how much the dealer would offer you if you sold tomorrow.
Silver
Silver does not benefit from the exemption. Investment silver coins and bars are bought with 20% VAT. This is one of the reasons why in Bulgaria silver is bought more as a collector’s item.
When selling
The VAT exemption applies to the purchase. What happens with income tax when you sell is explained in Taxes on selling coins. How metal value and collector value compare is explained in Metal value vs collector value.
