Customs-Free Warehousing for Precious Metals: Advantages, Costs and Drawbacks

Is a customs-free warehouse worthwhile? The short answer first

For larger silver, platinum or palladium holdings worth around EUR 10,000 or more: yes, the tax advantage generally outweighs the ongoing storage costs by a clear margin. For smaller amounts, or for gold, a customs-free warehouse usually isn't worthwhile — a bank safe deposit box, your own safe, or the precious metals custody account are often the better choice here.

Interested in tax-free storage? Details on terms and process for the customs-free warehouse can be found on our customs-free warehouse page. For gold, we instead recommend our precious metals custody account in Germany.

What exactly is a customs-free warehouse?

A customs-free warehouse is a state-approved and monitored storage area in which goods are, for customs purposes, considered not yet "imported". As long as the goods remain in the customs-free warehouse, neither customs duty nor import VAT is charged — these only become due once the goods actually leave the warehouse and enter free circulation. In Switzerland, Articles 51 to 57 of the Customs Act (ZG) govern this special storage status; the pooled custody as customers' protected special assets is additionally anchored in the Depot Act.

In practice, this means: you buy silver, platinum or palladium bars, which are stored directly — without a detour through your living room — in an insured high-security vault, without the VAT that would otherwise be due on purchase being charged.

Why is this only worthwhile for silver, platinum and palladium — not gold?

A common misunderstanding: a customs-free warehouse offers no tax advantage for gold. Investment gold is exempt from VAT in Germany and across the entire EU under Section 25c of the German VAT Act (UStG) — regardless of where it's stored. There is therefore nothing here for a customs-free warehouse to "defer". For silver, platinum and palladium, the situation is different: these metals are subject to the full 19% VAT on a regular purchase. It's precisely this amount that can be deferred by storing the metal in a customs-free warehouse for as long as it remains there. This is particularly clear with a customs-free warehouse for silver: since silver — unlike gold — is fully subject to VAT, the liquidity advantage here is the greatest. That's precisely why Geiger Edelmetalle consistently offers the customs-free warehouse only for these three "white metals" — gold instead goes through the separate precious metals custody account in Germany, which is aimed primarily at security rather than tax advantages.

Customs-free warehouse in Switzerland or in Germany? An important difference

Customs-free warehouses for precious metals exist not only in Switzerland, but also at individual locations in Germany. Both work on the same basic principle — with one crucial difference: Switzerland lies outside the EU customs territory, while Germany sits right in the middle of it.

This is currently especially relevant: on 9 April 2026, the German Federal Ministry of Finance issued a letter clarifying the VAT application decree for deliveries into domestic customs-free warehouses (Section 4 No. 4b UStG). According to reports from several trade media, the tax exemption there will in future only apply if the buyer themselves ends the special customs procedure — a condition that private investors who simply have their metal stored can barely ever meet in practice. This affects providers with a storage location in Germany. Geiger Edelmetalle's customs-free warehouse is located in Switzerland and therefore outside the EU — it is not affected by this change. The VAT advantage therefore remains fully intact with us.

Advantages of a customs-free warehouse for precious metals

• VAT advantage: no 19% surcharge when buying silver, platinum or palladium, for as long as the metal remains in the customs-free warehouse.
• High-security storage: insured safekeeping in a professionally secured vault, with no burglary or theft risk at home.
• No transport hassle: purchase, custody and later sale all happen without physical shipping — practical for larger, hard-to-transport quantities.
• Diversification outside Germany: storage in Switzerland spreads your assets across a second, politically stable legal system.

How storage works in practice

The process is simpler than many expect: you choose the silver, platinum or palladium bars you want in the online shop and, when ordering, specify that the goods should be stored directly in the customs-free warehouse instead of being shipped to you. The purchase then takes place without VAT, and the metal goes straight into the insured high-security vault in Switzerland — you never have to hold it yourself. Through your customer account, you always have an overview of your holdings and their current value. If you want to sell later, this also happens without physical transport, directly out of the customs-free warehouse. The additional costs mentioned in the next section only apply if you actually want the metal delivered to your home.

Costs and fees: what does a customs-free warehouse cost at Geiger Edelmetalle?

The storage fee depends on the stored metal and total value and is calculated annually. These rates apply according to Geiger Edelmetalle's current fee schedule:

On top of this comes a minimum storage fee of EUR 150 per year, and the minimum storage value is EUR 10,000 — below that, a customs-free warehouse contract with Geiger is not possible. Billing takes place annually as of the last London Fixing of the calendar year, or pro rata at the end of storage, based on the monthly inventory count.

A worked example: for EUR 20,000 of stored silver, an annual storage fee of EUR 280 applies at 1.40% — this pays for itself in the very first year, since the VAT avoided on purchase alone would have amounted to EUR 3,800.

Customs-free warehouse drawbacks: what you should know before storing

Even the Swiss customs-free warehouse isn't a free pass without limitations — the following drawbacks of the customs-free warehouse in Switzerland apply regardless of the tax advantage and should be known before you decide:

• No physical access. Asked directly, "Do I have access to my customs-free warehouse?", Geiger Edelmetalle answers clearly: no, private individuals do not have access to the customs-free warehouse. You own a share of the pooled custody, but cannot personally visit the vault.
• New purchases only, no existing stock. Precious metal you already own — for example from an earlier purchase on which VAT was already paid — cannot be stored in the customs-free warehouse retroactively. For such holdings, only a safe deposit box or storage at home remains an option.
• Costs on delivery. If you later have your precious metal physically delivered, you pay, in addition to the then-applicable VAT, an additional withdrawal and customs fee of EUR 200.
• Minimum storage value. Below EUR 10,000, a customs-free warehouse with Geiger simply isn't worthwhile, since the contract either won't be entered into or is terminable.
• Ongoing costs reduce your return. Even though the tax advantage usually pays for itself quickly, storage fees are charged year after year — over very long holding periods, this increasingly offsets the initial advantage.

Who is a customs-free warehouse worthwhile for?

A customs-free warehouse is particularly suited to investors who are newly buying larger quantities of silver, platinum or palladium and want to store them securely long-term without necessarily keeping them at home — for example, as a complement to existing gold holdings in the precious metals custody account. Anyone who only owns smaller quantities, wants to store precious metal they already own, or needs personal access at any time, is often better served by a safe deposit box or storage at home. You can read more about the alternatives in our guide Storing Gold Safely: At Home, at a Bank or in a Customs-Free Warehouse?

Customs-free warehouse compared with other storage options

As this table shows, the four storage forms don't mutually exclude each other — many investors combine them depending on the metal and purpose: gold in the precious metals custody account, larger silver holdings in the customs-free warehouse, smaller amounts or jewellery in a safe deposit box.

Summary

A customs-free warehouse is an attractive option for silver, platinum and palladium investors with larger holdings to save VAT and store their assets securely and discreetly. The tax advantage is real and usually pays for the ongoing fees within the first year — but it comes with genuine limitations, above all the lack of physical access and the restriction to new purchases only. At Geiger Edelmetalle, we're happy to advise you on whether a customs-free warehouse is worthwhile for your specific holdings, or whether a different storage form suits you better — just get in touch.

Frequently asked questions

What is a customs-free warehouse?
A state-monitored storage area in which goods are, for customs purposes, considered not imported. As long as precious metals remain there, no VAT is charged — it only becomes due upon actual delivery.

What fees apply to a customs-free warehouse?
At Geiger Edelmetalle, between 0.50% and 1.40% per year, depending on the metal and value, with a minimum of EUR 150 per year. On delivery, the then-applicable VAT plus a withdrawal and customs fee of EUR 200 also apply.

What are the biggest drawbacks of a customs-free warehouse in Switzerland?
Private individuals have no physical access to the warehouse, precious metal you already own and have already paid tax on cannot be stored there retroactively, and a minimum storage value of EUR 10,000 applies.

What's the difference between a customs-free warehouse in Switzerland and one in Germany?
Both work on the same basic principle, but lie in different customs territories — Switzerland outside, Germany inside the EU. This has also become tax-relevant since a German Federal Ministry of Finance change in April 2026: it affects customs-free warehouses on German territory, but not Geiger Edelmetalle's Swiss customs-free warehouse.