Benefits and tax exemption

Individuals or professionals, know that the acquisition of works of art has very interesting advantages, in particular to reduce your taxes while having fun.

BENEFITS FOR PROFESSIONALS

Companies can also acquire one or more original works of art and benefit from tax advantages: For the purchase of a work of art, a professional can in fact deduct from his tax base 20% of the price of purchase of a work of art over a period of 5 years, within the limit of 0.5% of the company's annual turnover.

Original works by living artists are also excluded from the professional tax base.

To benefit from it, the works purchased must be produced by living artists and be exhibited in a public place accessible to all employees, customers and suppliers for at least 5 years, i.e. the amortization period of the work.

ADVANTAGES FOR INDIVIDUALS

In French law, works of art benefit from attractive taxation.

As an individual, here are the main advantages:

• Advantageous taxation of capital gains: If you wish to resell a previously purchased work of art, two situations arise:

- You have an invoice:

Opt for a flat tax of 5%; Opt for the application of the general capital gains regime (this is the same regime as that for real estate capital gains benefiting from an exemption after 21 years)

- You do not have an invoice:

You will then have to pay the 5% tax which will be paid by the intermediary on behalf of the seller.

• Transfer of assets:

In the event of an inheritance and under certain conditions, works of art can be included in the flat rate of 5% of the value of the estate.

• Payment of certain taxes:

It is possible for an owner of works of art to pay certain taxes with a work. The law allows them to settle the duties that are due to the State with this consideration.