ACQUISITION OF WORKS OF ART FOR COMPANIES

Investing in the art market requires expert advice, the experts of Art Avantage accompany you on the entire acquisition process.

The State Allows corporations to amortize over 5 years

in works of art as for any investment

Numerical Examples

Sales revenue (excluding taxes)

1 000 000 €

5 000 000 €

10 000 000 €

100 000 000 €

Deductible amount per year

(within the limit of 0,5% of the sales revenue)

5 000 €

25 000 €

50 000 €

500 000 €

Optimal Investment

(over a period of 5 years)

25 000 €    (5000 x 5)

125 000 €   (25 000 x 5)

250 000 €   (50 000 x 5)

2 500 000 €   (500 000 x 5)

This scheme applies to limited companies and partnerships. The investment is capped at 5 per thousand of the company’s turnover or 0.5%*. Only conditions: the artist must be alive and his creations must be accessible to the public on the premises of the company for at least 5 years.

* Article 238a AB of the General Tax Code

“companies that purchase, as of January 1, 2002, original works of living artists and enter them in a locked-in asset account may deduct, by equal fraction, the result of the acquisition and the subsequent 4 years, a sum equal to the purchase price”