The investment is not worth it, and it is better to turn to another type of investment that is safer, for example, real estate. Delineate the duration of your investment. From the beginning, define when the investment in a given work stops. Avoid speculative works whose coast can rise very quickly in the first years and decrease the following years. This attention is to be redoubled if your main objective is to make this investment a haven. At the best online art galleries you can find the perfect artworks now.
You must also pay attention to the choice of the artwork. Here are the points to consider:
- The traceability of the work is paramount. The certification is absolute if the property appears in a catalogue. Similarly, the expert who represents the artist or the gallery who sold the work must certify it.
- Do some research on the artist and his work? This will allow you to negotiate the price of the property and anticipate how its coast will evolve over the long term.
- Prefer single pieces, because its value will increase more than that of a reproducible work.
- As in any investment, the one in art also has its share of risks and pitfalls to avoid. To avoid them, it is best that you call in an advisor specialising in art.
Taxation applied to investment in art
Investing in art will allow you to benefit from an advantageous tax system. If the purchase is made from the artist or his successors, the applied VAT is the reduced rate of 5.5%. However, this rate will be 20% on sale if the transaction is made with a third party. For sale, a property whose amount is less than 5000 $ is exempt from tax. If the value of the work is greater than this amount, you have two choices:
- Application of a flat tax of 6.5% based on the selling price
- Taxation of the capital gain at 19%, with social security contributions of 17.2%.
But the biggest tax benefit is that this type of investment does not fit the IFI base. This will allow you to tax a portion of your wealth. Thanks to the nation, you do not have to pay your inheritance tax if you donate your artwork of artistic or historical value to the state. Soft taxation is one of the benefits of investing in a work of art. And the higher the value of the good, the higher the tax benefits.
Some artists in the making
Several talented artists in the art world can produce remarkable works from time to time. But some of them manage to stand out and are more sides.
Takashi Murakami: it was in February 1962 that this Japanese sculptor-painter was born. This artist knows how to mix fine arts and commercial art to produce works that appeal to connoisseurs. His collaboration with Louis Vuitton has increased his fame tenfold even though it has already been noticed by collectors before. Among his most famous works, there is “My Lonesome Cowboy” which was sold for $ 15.2 million at Sotheby’s in 2008.