Investing in art: a cultural and fiscal opportunity not to be missed

Investing in art goes far beyond simple aesthetic pleasure. It's a unique opportunity that combines tax optimization, asset enhancement, and support for artistic creation. Whether you're an individual or a business, this approach can transform your tax situation while enriching your daily life.

Why invest in art for tax relief?

A privileged tax lever in France

Art benefits from a particularly advantageous tax status, making this investment very attractive:

1. Exclusion from Real Estate Wealth Tax (IFI) : Unlike real estate, works of art are not subject to IFI. They are completely excluded from the calculation of your taxable assets.
2. Income tax reduction : Under Article 98A of the General Tax Code, certain works of art allow you to directly reduce your income tax.
3. Favorable tax treatment during transfers : In the event of inheritance, works of art can be valued at only 5% of the total value of the transferred assets, thus considerably reducing inheritance tax.

For businesses: A dual fiscal and strategic opportunity

Acquisition of works of art: A five-year deduction

Companies can benefit from tax relief by investing in original works by living artists, according to the provisions of Article 238 bis AB of the General Tax Code:

• Deduction spread over five years : The acquisition cost is deductible in equal installments over five tax years.
• Tax ceiling : The deduction is limited to 0.5% of annual turnover.
• Exhibition conditions : The work must be accessible to the public or employees on the company premises (reception rooms, halls, meeting spaces, etc.).

Example: A company that buys a sculpture for €15,000 can deduct €3,000 from its taxable income each year for five years, provided it meets the exhibition conditions.

Renting works to optimize cash flow

Leasing art, or renting to own, allows businesses to enjoy the following benefits:

• Full deductibility of rents : Monthly rental payments are considered operating expenses and tax deductible.
• Financial flexibility : Spread payments over 12 to 48 months.
• Acquisition at the end of the contract : At the end of the lease, the company can purchase the work for a residual amount of 3% of the total value.

Strengthen the brand image

Investing in art also helps enhance the company's image:

• Sophistication and prestige : The works exhibited in your premises convey a message of innovation and culture.
• Support for contemporary creation : Purchasing works by living artists reflects a commitment to art and society.

For individuals: Taxation and asset diversification

1. Exclusion from IFI

Works of art are not subject to the IFI, making them an excellent asset diversification tool for those with high taxes. This exemption includes all types of eligible works: paintings, sculptures, antique jewelry, antiques, and collector cars.

2. Reduction of inheritance tax

In the event of transmission, works of art can benefit from a reduced tax regime:

• They are valued at only 5% of the total value of the assets transferred, a measure which considerably reduces inheritance tax.

3. Favorable tax regime upon resale

Individuals can choose between two tax options when transferring a work:

• Flat rate tax of 6.5% : Applicable on the gross sales price.
• Capital gains regime : Taxation at 36.2% (19% income tax + 17.2% social security contributions), with a 5% reduction per year after two years of ownership, leading to total exemption after 22 years.

4. The payment in kind

This system allows you to pay certain taxes (IFI, inheritance tax) by transferring a work of art to the State. This only applies to pieces with recognized heritage or historical interest.

Works concerned:

To benefit from tax advantages, works must meet certain criteria:

• Original Creations : Paintings, sculptures, jewelry, antiques, old documents or collectibles are eligible.
• Contemporary works by living artists : Only for business-related devices.

Conditions to be met:

1. Valid invoice : Each purchase must be justified by a clear and detailed invoice.
2. Mandatory public exhibition : Works must be accessible to the public for a minimum of five years after purchase.
3. Compliance with tax limits : Whether for individuals or businesses, deduction or declaration limits apply.

Why get support from experts?

Navigating art tax systems can be complex. Working with an art professional or specialized tax advisor will help you:

• Identify eligible works suited to your profile.
• Comply with legal obligations (exhibition, documentation).
• Maximize your tax benefits while securing your investment.

In conclusion: A double-win strategy

Investing in art represents a unique combination of aesthetic pleasure and financial optimization. Whether you're an individual looking to reduce your taxes or a business looking to enhance its space and image, art is an essential strategic lever.

Contact us today to explore our collections and let us guide you in this profitable, cultural and elegant journey.