Art Invest
Art as investment
Why Art Is a Tax-Efficient Investment Asset in France
Art investment in France benefits from a particularly favorable tax framework. Works of art, considered tangible movable property, enjoy specific tax rules that make them an attractive asset class.
Acquisition
When purchasing an artwork, original works created by the artist are subject to a reduced VAT rate of 5.5%, compared with the standard 20% applied to most other goods. This reduced taxation makes art more accessible to collectors.
Ownership
Works of art are exempt from the French Real Estate Wealth Tax (IFI). They are therefore not included in the calculation of taxable wealth, which is a major advantage for high-net-worth individuals.
Resale
When selling an artwork, the seller can choose between two tax regimes:
- A flat tax of 6.5% on the sale price (including social contributions).
- Taxation on actual capital gains at 36.2%, with a 5% annual allowance applied from the third year of ownership.
→ Full exemption after 22 years of ownership.
Companies
Businesses purchasing original artworks may deduct the acquisition cost over five years, within the limit of 0.5% of annual turnover, provided the works are displayed to the public or employees during that period.
Gifts and inheritance
Donations and inheritances can benefit from the “dation in payment” mechanism, allowing taxes due to be paid by transferring artworks to the State instead of paying in cash.
The benefits
A tangible and emotional asset
Unlike dematerialized financial investments, a work of art is a physical asset that you can contemplate and enjoy every day. It provides immediate aesthetic pleasure while also constituting a heritage investment.
A safe haven against inflation
The art market shows remarkable resilience in the face of economic crises. Works by renowned artists tend to increase in value over the long term, regardless of fluctuations in traditional financial markets.
Effective asset diversification
Art offers a decoupling from the stock and real estate markets. Integrating works of art into an investment portfolio reduces overall risk and optimizes long-term performance.
A rapidly growing market
The global art market is experiencing continuous growth, driven by the emergence of new collectors, particularly in Asia and the Middle East. This international momentum is supporting the appreciation of artworks.
Easier transmission
Works of art can be passed on to your heirs under favorable tax conditions. They constitute a family heritage steeped in history and meaning, beyond their mere financial value.
Personal cultural enrichment
Collecting art allows you to develop your artistic sensibility, meet artists and enthusiasts, and actively participate in cultural life. It is as much an intellectual investment as it is a financial one.
Increasing liquidity
With the development of online sales platforms, digital auction houses, and international galleries, it is becoming increasingly easy to resell a work of art at its fair value.
Direct support for creators
By investing in art, you directly support artists and contribute to the emergence of new talent. In doing so, you contribute to the vitality of contemporary creation and the preservation of cultural heritage.