Investment Luxury Watches

[semas2]

I have several Luxury Watches bought from from Vendors and Individuals.

The Trade has been always made by Cash and i have sent a Person to do the payment stuff and pickup of the watches in the past.

following scenario:

- First Watch bought from a Vendor and he gave an invoice on the name of the guy who picked it up for me and paid it in person by cash. Watch is worth around 18-20k € now. ( bought for around 12k ) ( bought like 5 years ago )

- Second Watch was bought from an individual without doing a Purchase contract, and i sent also a person to make the deal and pick it up in person. The original invoice is included ( where the previous owner bought it from a vendor ) watch is worth now around 40-45k € ( bought for around 25k€ ) ( bought 3 years ago )

- Third Watch bought from individual , a purchase contract between the seller and buyer has been made , i also sent a person to do the trade and he paid in cash. also the Original invoice is included ( from the vendor shop )
( bought 5 months ago )



So in my Country if i held luxury watches for more than 1 year no taxes on my gains are charged.

However, if i go to a Vendor and he is willing to buy a watch will there be any problems on bank or tax man side ?

i dont want to receive cash, i want to get it via wire on my bank account.

could the bank or even tax man ask where the origin of funds came for the luxury watch investments?

i dont want to sell all at the same time anyways.

 

[JackAlabama]

I have several Luxury Watches bought from from Vendors and Individuals.

The Trade has been always made by Cash and i have sent a Person to do the payment stuff and pickup of the watches in the past.

following scenario:

- First Watch bought from a Vendor and he gave an invoice on the name of the guy who picked it up for me and paid it in person by cash. Watch is worth around 18-20k € now. ( bought for around 12k ) ( bought like 5 years ago )

- Second Watch was bought from an individual without doing a Purchase contract, and i sent also a person to make the deal and pick it up in person. The original invoice is included ( where the previous owner bought it from a vendor ) watch is worth now around 40-45k € ( bought for around 25k€ ) ( bought 3 years ago )

- Third Watch bought from individual , a purchase contract between the seller and buyer has been made , i also sent a person to do the trade and he paid in cash. also the Original invoice is included ( from the vendor shop )
( bought 5 months ago )



So in my Country if i held luxury watches for more than 1 year no taxes on my gains are charged.

However, if i go to a Vendor and he is willing to buy a watch will there be any problems on bank or tax man side ?

i dont want to receive cash, i want to get it via wire on my bank account.

could the bank or even tax man ask where the origin of funds came for the luxury watch investments?

yes of course.

 

[0xDEADBEEF]

Expect questions, especially about watches since tax agencies tend to zero in on them.

In my experience dealing with watches, resellers often ask about payment preferences: cash, crypto, or bank transfer. This helps them pinpoint the right payee. Choosing crypto would make more sense, especially if the cash source isn't easy to explain.

 

[JohnLocke]

i dont want to receive cash, i want to get it via wire on my bank account.

could the bank or even tax man ask where the origin of funds came for the luxury watch investments?

You ask for troubles by wanting the money to go into your bank account. As above mentioned already, if possible get the payment in cryptos that's until now still with less headache.

 

[apres777]

That certainly depends on a number of factors.

Most of it depends on where you live and what your financial situation is like.

Personally, I have bought and sold quite a few watches within Europe within the last years (from licensed retailers, jewellers and private individuals). I have bought some watches in cash and sold them by "bank transfer" and have had no problems or queries, but would always been able to show the relevant documents anyways.

It is certainly not the smartest thing that you have not made any purchase contracts and the payment has been made by third parties. This is also quite negligent for your own safety.

The dealer (buyer) mostly will have no problem with this as long as the watch is not stolen and you ideally have papers for the watch.

If you only have €5,000 in your bank account though and suddenly receive payments from jewellers or private individuals in the 50,000 range, a call from bank will certainly not be long in coming.

PS: I just hope that you bought the watches in the country you live in and VAT has been paid accordingly, otherwise this might lead to way bigger issues, then definitely opt in for a Crypto / Cash Solution.