The Swiss Silver Trick That Saves Thousands
Whenever I travel abroad, I make it a point to buy some precious metal — not because I need it, but for the experience.
It’s part habit, part reconnaissance. Most of my clients are serious investors in gold and silver, so I like to test the waters in different countries: Can you still buy anonymously? Can you pay in cash? How much tax can you save? These small experiments give me—and my clients—real-world intelligence that Google searches and glossy dealer brochures never will.
Coins or Bars? The Swiss Dilemma
I split my time between my homes in the UK and the US, and on my recent trip to Switzerland I was returning to the UK.
Thus, I found myself in a familiar position: coins or bars?
In Switzerland, both silver bars and coins carry an 8.1% VAT—already lower than the UK’s 20%. But here’s the trap:
If you bring bars into the UK, you must declare them at the border and pay the UK’s full 20% VAT based on their value. Any Swiss saving on bars disappears the moment you land at Heathrow.
Certain coins are different. Some, like the 1 oz Silver Britannia, are UK legal tender, which means they can be brought into the UK legally without paying import VAT or customs duty, and they’re also CGT-exempt when sold later. That legal distinction is the key to this whole trip.
The Swiss Purchase — Quick, Legal, Private
Armed with that knowledge, I skipped the bars and bought coins: CHF 370 for a tube of ten Britannias, about £32.50 per coin, VAT included.
The transaction was smooth: in Switzerland, unless you’re spending over CHF 15,000 in a single precious metals purchase, the dealer doesn’t need to see your passport, driver’s licence, or even your postcode. You hand over the cash, they hand over the coins. Done. Privacy intact, and entirely within the law.
Returning to the UK — No Red Channel
I carried my Britannias back to the UK in my hand luggage. No limit, no forms, no fees. Customs didn’t even blink—because they’re legal tender, they’re treated as money, not goods. Had they been bars, I’d have been walking straight into the red channel to declare them and pay 20% VAT to HMRC.
Why the Numbers Matter
On paper, the price difference might seem modest — but when you put it in context, it’s substantial.
In Switzerland, I paid about £32.50 per coin (8.1% Swiss VAT included). The same coin from a UK dealer, once you’ve added the inevitable 20% UK VAT, comes in at around £42. That’s a £9.50 saving on every single coin.
Even with a small purchase — say, a 10-coin tube — that’s £95 back in your pocket. Enough to cover your travel expenses if you combine it with other errands abroad.
But the real magic happens when you scale up. A monster box of 500 coins in London will set you back roughly £21,000. The same box bought in Switzerland? Around £16,250. That’s a saving of £4,750 — without paying a penny in UK import VAT, without customs duty, and with complete CGT exemption when you sell.
For serious stackers, those numbers aren’t just interesting — they’re the difference between adding a modest top-up to your holdings and buying an entire extra box for the same outlay. And unlike many “tax hacks,” this one is fully within the letter of the law.
The Bigger Picture — EU Rules Tightening
What I did in Switzerland works today—and for EU residents, it may soon look even better.
The European Union is tightening the screws with AMLD6, the 6th Anti-Money Laundering Directive.
Under AMLD6, any purchase of valuables over €10,000—paid in cash or not—must be registered, and the customer must be identified. This applies to all EU member states and will create a paper trail for large bullion purchases—a potential first step toward a broader asset registry.
Switzerland, of course, is not in the EU. That means these rules don’t apply there, making it an even more attractive buying destination for EU residents. An EU citizen could simply travel to Switzerland, buy their metals there, and avoid AMLD6 reporting entirely.
And here’s where it gets even better: if those metals are stored in a Swiss duty-free (bonded) warehouse, no Swiss VAT at all is payable, because the goods are considered “in transit” and not imported into the domestic market. If instead you store them in a bank safe-deposit box or private vault in Switzerland, the normal 8.1% Swiss VAT on silver will apply at the time of purchase, because those locations are not bonded storage facilities.
How EU Buyers Can Buy in Switzerland and Store VAT-Free — Step by Step
This works for both individuals and companies based in the EU. It is legal, straightforward, and takes advantage of Switzerland’s non-EU status.
1. Travel to Switzerland
Choose a reputable bullion dealer that offers delivery directly into a Swiss bonded (duty-free) warehouse.
Zurich and Geneva both have multiple dealers with established bonded storage partners.
2. Select Your Metal
Works for both bars and coins (Britannias, Krugerrands, Philharmonics, etc.).
If stored directly in bonded storage, no Swiss VAT is charged at purchase.
3. Storage Options
Bonded warehouse: No VAT payable as long as the metal stays in the warehouse.
Can be in high-security facilities like Loomis, Brink’s, or Swiss Freeport zones.
Fully insured, audited, and segregated storage is usually available.
Important:
Safe-deposit boxes at Swiss banks and private vaults are not bonded. If you take delivery into one of these, 8.1% Swiss VAT will be added to the purchase price.
4. Keep It Offshore
Your holdings remain outside the EU, outside AMLD6 reporting requirements, and outside your home country’s tax net until you decide to import them (which may trigger VAT in your country).
5. Withdraw or Sell When Needed
You can instruct the bonded warehouse to ship your metals anywhere in the world or sell them back to the dealer.
Many Swiss dealers will buy directly from bonded storage without the metal ever physically moving.
How UK Buyers Can Bring Britannias Home VAT-Free — Step by Step
This method is for UK residents who want to legally avoid the 20% UK VAT on silver while keeping within all import rules.
1. Travel to Switzerland (or another non-EU country)
Focus on buying UK legal tender coins such as the 1 oz Silver Britannia.
Bars and non-UK-legal-tender coins will not qualify for the VAT exemption on import.
2. Understand the VAT Situation
In Switzerland, you will still pay 8.1% Swiss VAT on both coins and bars if you take physical delivery.
Even with that VAT, Swiss prices are typically far cheaper than UK dealer prices with 20% VAT.
3. Make the Purchase
Pay in cash if under CHF 15,000 — no ID required under Swiss law.
Keep your receipt for your own records, though you won’t need to show it at UK customs.
4. Bring the Coins into the UK
Carry them in your hand luggage.
Declare them if asked — and state clearly that they are UK legal tender (e.g., 1 oz Britannias).
Legal tender coins are exempt from UK import VAT and customs duty.
5. Avoid Bars for Home Import
If you bring bars into the UK, you must declare them and pay 20% UK VAT on their value.
For bars, the smarter move is bonded storage in Switzerland (see EU method above).
6. Store Safely
Keep only a modest amount of silver at home for emergencies.
Larger holdings should be vaulted offshore — Switzerland or Singapore are top choices.
A Fun Comparison — U.S. Prices
For curiosity’s sake, I checked U.S. dealer prices for 1 oz Silver Britannias. Right now they’re around $43–$44 each (about $4.99 over spot). With the dollar recently weaker, that works out to roughly £34–£35—cheaper than the UK, though not quite as sharp as Switzerland.
It’s a fun comparison, but in practice, unless you live in the U.S. or can arrange storage there, the logistics and potential import issues make it less appealing for a UK resident.
Offshore Storage — The Smart Play
Trips like mine are fun and educational, but keeping large quantities of bullion at home is risky. The smarter strategy is to hold only a modest “emergency” stash locally and store the bulk offshore in a secure, stable jurisdiction.
One of our top recommendations is Singapore—politically stable, financially secure, and with world-class vaulting facilities.
At Silverbullion.com.sg, the 2025 1 oz Britannia is listed at about SGD 54.2–54.6—roughly £29–£30—and you can vault it on-site. That means competitive pricing, no UK VAT, and professional-grade storage outside your home jurisdiction.
The Takeaway
Three key lessons:
The UK punishes domestic bullion buyers with VAT and over-compliance.
Legal tender coins like Britannias can be brought in VAT-free.
Non-EU jurisdictions like Switzerland offer privacy, cost savings, and VAT-free bonded storage.
Book a Consultation
Physical precious metals are just one piece of the puzzle. The real strategy is about structuring your life, business, and assets so they’re protected, mobile, and tax-efficient.
That’s where I work with clients — not as a bullion dealer, but as part of a wider relocation and asset protection plan. Our work can include:
Choosing the right jurisdictions for tax residency and company formation
Structuring holdings for legal tax optimisation and privacy
Integrating metals, cash, real estate, and other assets into a resilient Plan B
Planning offshore banking and compliant asset protection strategies
If you want to see how precious metals fit into an overall structure designed to safeguard your wealth and mobility, get in touch and we can explore the options.
Well-Known Bullion Dealers in Switzerland
If you plan to follow the strategies above, here are five established dealers across Switzerland worth knowing:
philoro Schweiz AG – Zurich. Coins, bars, bonded storage, and anonymous in-person purchases.
Degussa Goldhandel AG – Zurich & Geneva. One of Europe’s most trusted bullion brands, offering coins, bars, and secure storage.
Aurofin SA – Chiasso. Convenient for southern cross-border buyers, offering coins and bars.
Gold Avenue – Online, based in Geneva. Official retailer with optional free vault storage in Switzerland.
