Investing in works of art. Perhaps not everyone knows that it is not necessary to be an expert to approach this type of operation. Nor is there any ad hoc funding to facilitate purchases in this sector.
Let’s start with a fundamental assumption: the art represents, as well as an undoubted aesthetic value, also an economic asset from which one can profit, clearly reducing the hazards to a minimum.
Protects your problems
A good starting point is constituted by contemporary art, given that, tendentially, it is characterized by lower prices compared to older and more established artists. From statistics related to the performance indexes of works of art, the investment in living authors allows rather high gains in perspective and protects from some problems such as the discussed and well-known problem of fakes. Furthermore, collecting is a source of unquestionable but often little-known advantages, both for companies and individuals.
The Corporate Art Collection, a phenomenon born in the United States since the 1930s, represents a relatively recent phenomenon in our country, also in relation to the interesting tax benefits envisaged. The possession of works of art of any age is not subject to taxation. The companies or a company can scale the costs of the purchased works in full, with a tax saving of 35% in 5 years (7% per year). The only requirement to benefit from the deduction is that the works are exhibited in the representative rooms, while the freelancers can deduct 1% as entertainment expenses, exposing the works they own.
Private individuals also benefit from legislation that looks favorably on collecting: no tax is payable on the proceeds from the sale of their works of art and possession of the works should not be reported in the tax return.
It should be noted that, although choosing investments in contemporary art, the starting capital is never less than 5,000 euros. An investment that is still demanding, which finds support in the solutions designed by the main credit institutions.
To get an idea of the possible gains, just think that the statistics made by Deloitte (Deloitte Art and Finance Report) showed a real annual return on investment in works of art at an international level, in the period between 2005 and 2011, of 10.25%.
OneLoan offers its customers a team of specialists in Art Advisory who support Private Bankers in the accurate analysis of the artistic “portfolio”, structuring management strategies aimed at protecting, consolidating and increasing the asset value of a work or a entire collection.
Pefo Bank also offers leasing services specifically designed for the art world, with the possibility of financing amounts starting from 75,000 euros (including VAT) net of the initial maxi fee. The Art Gallery Pefo Bank customer receives support and advice in all phases of the acquisition of the work: from the appraisal to the appraisal, to the personalization of the leasing contract, to the insurance, to the transport.