Art tax exemption

For individuals:

The tax reduction is limited to 20% of your taxable income, (and the sale of works is taxed on the capital gain above €5,000). As an individual, if you are subject to the Real Estate Wealth Tax (IFI).

The conditions: obtain an invoice from the seller and the work must have been created by the artist, during his lifetime!

For the company:

A company that invests in an original work of art before December 31, 2025, can deduct the purchase price from its taxable income over five years. To benefit from this tax advantage, the following conditions must be met:

Tax relief for the purchase of a work of art is open to companies:

  • Companies subject to corporate tax

  • Companies and individual entrepreneurs subject to income tax in the BIC category. The tax deduction applies to the purchase of original works entirely executed by the artist during his lifetime.

The works concerned are:

  • Painting, engraving, print and lithograph, printed in limited numbers directly from plates. The art of statuary or sculpture and assemblage. Casting of sculpture in limited edition of 8 copies and controlled by the artist or his beneficiaries. Handmade tapestry, based on original cardboards provided by the artist, limited to 8 copies. Unique ceramic copy, signed by the artist Enamel on copper, 8 numbered copies and signature of the artist. Photograph taken by the artist, signed and numbered within the limit of 30 copies.

On the other hand, manufactured objects, even works of art, do not constitute original works.

The conditions for benefiting from the tax deduction:

Artist still alive

The artist must be alive at the time of purchase of the work . It is up to the company to prove the existence of the artist at the date of acquisition. (e.g. a photo with the artist or a note from the artist)

Exhibition of the work

The company must have the work of art exhibited in a place accessible free of charge to the public or to employees (with the exception of its offices).

The duration of the exhibition is set at 5 years, continuously . This period corresponds to the accounting year during which the work was acquired and the following 4 years.

Concretely, the exhibition of the work can be carried out in different ways:

  • In the company premises , accessible to the public or to employees.

  • In a museum.

  • In a local authority.

  • In a public establishment of a scientific, cultural or professional nature.

  • During events organized by the company or by a museum, a local authority or a public establishment to which the property has been entrusted

Accounting obligations for the acquiring company:

The company must comply with 2 accounting obligations :

  • Record the work as a fixed asset: A durable asset that belongs to a company and has a physical consistency. This could be, for example, land, a building, industrial equipment. in its accounting

  • Allocate the amount of tax deductions to a special reserve account, appearing in the liabilities: Debts (deducted from the company's resources) or fixed financial resources (capital) of the balance sheet. The company must attach to its income statement a document concerning the constitution of this reserve, in accordance with the model presented by the tax administration.

How the deduction is applied:

The basis of the deduction corresponds to the purchase price excluding tax of the work, to which may be added, if any, any incidental costs (e.g. transport of the work). On the other hand, costs that are not included in the purchase price (e.g. commission paid to an art dealer) are excluded from the basis of the deduction. The latter are immediately deductible.

Terms of application

The tax deduction is spread over 5 years (year of acquisition and the following 4 years) in equal fractions. Thus, it is equal each year to 1/5 (20%) of the cost price of the work. If the acquisition is made during the year, the deduction is not reduced prorata temporis: Latin expression meaning in proportion to the time actually elapsed. Allows a calculation to be made taking into account real time.

In both cases, whether you are an individual or a company, it is recommended to be accompanied by a professional