Daria Kolosova SCROOGE WITH BTC ON GOLD (2022)
1 Take advantage of the democratization of the art market
The art market is no longer reserved for the rich and famous, thanks to the influx of contemporary works, especially on Artmajeur.
The art market is more affordable than you might imagine, since nearly 80% of sales are for works under $5,000. Only 4% of the Western art market is made up of works that sell for more than $50,000. More than half of the paintings, however, are priced below $1,000. This is not a new phenomenon in the digitization of the market. The art market has become more accessible thanks to the availability of data on the value of artists such as on Artmajeur.com. More and more businesses are taking advantage of the global reach of online sales.
2. If you make an unusual investment, exercise caution
Buying artwork as an investment is an "alternative". Therefore, neither a profit nor a return on investment is assured. It's possible that an artist's stock price will go down and your investment will lose value. Over a ten-year horizon, it is impossible to assess the long-term value of an artist or a work. In addition, the long-term stability of the art market must be taken into account. Global economic movements are not totally spared by this market, although it is less volatile than the stock market.
Richard Orlinski BLUE SPIDER (2020)
3. Know the artist's rating before making a purchase
You have to know how to place your bets to hope for a gain, and that is the only secret. Invest in well-known pieces or keep an eye out for up-and-coming artists whose works will rise in value in the future. Nevertheless, this requires prior knowledge or, at the very least, quality data such as on Artmajeur which offers artists listed by the world leader in art listing Akoun. This is possible with the help of the Internet. Thanks to specialized sites that list the results of auctions, you can find out about the value of an artist's work and do not hesitate to contact Artmajeur.com support when you have any doubts.
4. Ask for guarantees too
Check the legitimacy of the work before buying it from the seller by requesting a certificate of authenticity. It proves the authenticity of the work and binds it to the artist. It is difficult to sell without this certificate. As soon as possible, you should receive a full invoice. Note that Artmajeur always provides a certificate of authenticity.
Please note: if you acquire a work online, you have a 14-day right of return applicable to distance sales. Sellers who are professionals and buyers who are consumers are not subject to this reflection period. When a seller is not qualified, there is no grace period. Therefore, it is essential to examine the terms of withdrawal. On Artmajeur, the 14-day period is guaranteed for all buyers worldwide. At Artmajeur we have the right to make mistakes.
Antoine Dufilho PORSCHE 930 TURBO (2021)
5. Be prepared for unexpected costs
Purchasing artwork entails a number of additional costs that should not be overlooked if you want to stick to your budget: What the intermediary charges for his services. Commissions are added to the negotiated price or auction, regardless of where you buy: a gallery, an Internet agency or an auction house. When you sell your work, you will also have to cover their costs. It should not be forgotten. The price of the expertise, the commission of a professional to help you select a work, or any other expertise costs are to be expected. It is up to you to transport and insure your goods, which includes the cost of transport. It is necessary to take out insurance covering theft and fire for the duration of your ownership of the vehicle.
Individuals cannot deduct VAT from their taxes because it is an additional expense. Currently, the standard rate is 20%. Depending on the circumstances, lower rates of 5.5% or 10% apply. For example, the tax rate for books is 5.5% if purchased in France and from the artist or his assigns directly or through the artist.
Note that the price mentioned on Artmajeur is an all-inclusive price including transport costs. This is not the case on all sites. So you have to be careful.
David Gerstein NATURE LOVER (2020)
6. Take advantage of the existing favorable tax regime
Currently, there is no tax on the mere fact of owning a work of art (In France). Investing in works of art allows you to exempt part of your assets from tax because they are exempt from real estate wealth tax (IFI).
The tax is only levied on resale above €5,000, which is favorable because the sale is only taxed once (annual limit for all sales combined). In addition, the following tax rules apply: This tax is automatically applied to the sale price, and it is 6.5%. However, you can choose to pay income tax instead. In this case, you will be taxed on the capital gain (and not on the sale price) at 36.2% (19% income tax and 17.2% social security contributions), with an annual allowance of 5% from the third year. After 22 years of detention, the result is total exoneration.
Investing in art has a number of advantages, including the possibility of realizing capital gains. However, it is still a risky and unconventional investment that can lead to loss of wealth.
Selena Mattei
