Tax exemption _

Tax reductions by investing in art has many advantages.

Tax avantages for companies according to French law

A company wishing to invest in art can benefit from certain tax reductions. By investing in art a company may reduce its tax based on the results of the financial year in question and for the four following years thereafter.
The sum of the art purchased is registered on the fixed assets account to obtain a tax reduction by equal fractions over five years.
If the company keeps the work(s) of art for five years, it will then be allowed a tax reduction of around 20%. However, the reduction will never exceed 5% of the company's annual turnover.

Tax avantages for private individuals according to French law

Buying art is a financial advantage to private individuals.

Indeed, it offers a reduction or an exemption of the ISF since the price of the artwork is not included in the ISF evaluation.
The purchase of artworks may also allow the private individual to pay off a financial debt by the surrender or transfer of the artwork.
Moreover, it is possible to choose the capital gains taxation, representing 5% of the value, or the normal taxation of 27% with an annual reduction of 10% after two years of possession.
It should be noted that artworks and collections valued less than 5000 euros are not liable to taxation. An artwork retained for 12 years benefits from complete tax exoneration.