A sculpture in pure fine silver is far more than an art object. It combines the measurable material value of a precious metal with the timeless expressive power of masterly craftsmanship. Sooner or later, collectors face the question: how do I pass this particular asset on to the next generation? And what has to be considered, both for tax purposes and in practical terms?
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How is silver art classified for tax purposes?
Physical silver, whether as a bar, a coin or an art object, is assigned to the category of “other assets” under German inheritance and gift tax law. This means that the often considerable tax exemptions that apply to property or business assets do not apply here. Acquisitions through inheritance or gift must in principle be reported to the tax office within three months, unless a statutory exception applies. That holds regardless of whether the personal allowance is exceeded. Whether tax is actually payable then depends on the value of the acquisition and the relevant allowance.
The basis for this is § 30 of the Inheritance Tax and Gift Tax Act (ErbStG). Silver sculptures as an investment also fall under this rule.
Which allowances apply?
The good news: personal allowances are generously set in many family situations. What matters is the degree of relationship between the person giving and the person receiving.
For a collection of sculptures in the five- to six-figure euro range, such as can well build up with passionate collectors, these allowances are often sufficient within a core family. If the value exceeds the allowance, inheritance or gift tax is payable on the amount above it. The tax rate depends on the tax class and on the size of the taxable amount.
How is the value of a silver sculpture determined?
Valuation is a particularly interesting question with silver art. In § 9 the Valuation Act (BewG) prescribes the “common value”. This corresponds to the market price achievable in ordinary business dealings. With silver sculptures, the following factors play the main role:
1. The material value: this results from the weight of the sculpture in grams multiplied by the current fine silver price (spot price for silver 999). This portion is measurable daily and can be demonstrated objectively. A sculpture such as “Rolling Spiral” with 8 kg of fine silver has a substantial, always traceable value at the material level alone.
2. Artistic and market-related factors: the artist’s prestige, the limited edition, provenance, state of preservation and current demand on the art market considerably influence the market price achievable. Limited editions by recognised sculptors as a rule achieve a total value considerably higher than their mere melt value.
From my experience I recommend having a professional valuation drawn up by a publicly appointed art expert for high-value collections. This protects against an inflated estimate by the tax office and creates clarity in the event of inheritance. With higher-value works of art, the tax office can demand additional evidence or expert reports if the value stated does not appear plausible.
Gifts during your lifetime: the most important tax lever
Anyone who wants to pass on their silver art in a planned way should know about the option of giving during their lifetime. It offers a decisive advantage over inheritance: personal allowances can be claimed again in full every ten years.
An example: parents who give their daughter a silver sculpture worth 80,000 euros in 2026 remain entirely free of tax within the allowance of 400,000 euros. If they give assets of a similar size again in 2036, the allowance applies a second time. Over two decades, considerable assets can be transferred to the next generation tax-free in this way.
One exception concerns parents and grandparents: for gifts they are assigned to the less favourable tax class II and have an allowance there of only 20,000 euros (instead of 100,000 euros in the event of inheritance). This difference does not apply to children and spouses.
Important: gifts must be reported to the tax office. Under § 30 ErbStG the three-month period begins when knowledge of the acquisition is obtained.
Silver as an investment: advantages and risks at a glance
The “footsteps principle”: what applies on resale
Anyone who receives a silver sculpture as a gift and later wants to sell it should know about a tax particularity: the so-called footsteps principle. It means that on a later sale the recipient “inherits” the original date of acquisition and the original purchase price of the giver.
In practice this means: if the sculpture was acquired by the giver more than a year ago, any gain on sale is tax-free for the recipient. If it was held for a shorter time, income tax may be payable on the gain. In this case the one-year period begins with the giver’s original date of purchase, not with the date of the gift.
The same principle applies to heirs: the deceased’s holding period is carried over, so that a sculpture held for longer than a year can be sold tax-free straight away. You can read more about the liquidity of silver sculptures on resale on our blog.
A special case: transfer to a foundation
A less well-known option is donating silver art to a charitable foundation. Under § 13 (1) no. 16 ErbStG, donations to tax-privileged charitable bodies can be exempt from inheritance and gift tax under certain conditions. The exact requirements are complex and should be examined case by case with a tax adviser. For collectors who want to make their life’s work permanently accessible to the public, this option is nonetheless worth a closer look.
Practical tips for passing on silver sculptures
From my many years of supporting collectors, I recommend the following steps for forward-looking planning:
- Documentation from the outset: keep purchase receipts, certificates of authenticity and details of the limited edition carefully. These documents are indispensable in the event of inheritance or a gift and make valuation by the tax office considerably easier.
- Will and testamentary disposition: if you want to pass particular sculptures to particular people, you should set this out expressly in your will. Without an express assignment, the work of art falls into the overall estate and is divided according to statutory succession.
- Consult a tax adviser: with larger collections in particular, it is worth taking advice from a tax adviser or specialist lawyer with expertise in inheritance law, in order to make full use of every option.
Silver art as a present: gifts without a planning background
Not every gift is a strategic act of estate planning. Sometimes a sculpture such as “Bulle & Bär” is simply the most extraordinary present you can give a particular person. An anniversary, the founding of a company, a wedding: silver art combines lasting material value with enduring emotional expression. You will find further ideas and inspiration in our article on gifts made of silver.
With gifts well below the allowances, no tax is usually payable in practice. The statutory reporting and documentation duties do, however, apply in principle to smaller values too. I therefore recommend always enclosing the purchase receipt with valuable individual pieces. That way the recipient has all the information they need for any later sale or for passing the piece on themselves.