FONDAZIONE GIUSEPPE FORTUNATO

Art Collecting

Collecting an artist’s piece of art has always been an important investment because it is understood to have not only a very good future of economic viability, but more importantly, it also has an aesthetic value which enriches the owner’s home and provides a special personal sense of well-being that a work of art brings to the soul for those who enjoy the pure essence of the work!

Collecting art is financially beneficial:
The buyer in the sale of works of art is governed by Italian law and as such enjoys a tax exemption on resale. For example, if an individual purchases a picture for $ 5000 with a regular invoice and in the future they resell with a profit (considering the revaluation worth of the artist), for example for, $ 50,000, the State will not take a single dollar from the proceeds of the sale.

The purchased work of art has no additional costs after the sale:
The purchased work of art, regardless of its value or prestige, is not liable for any possession charge and should not be declared in your tax return. Once purchased, the financial implications end, the buyer may enjoy the work with no additional concern. The work of art can hang on a wall, without needing any maintenance and it can safely be continuously appreciated, so much more than any other type of investment could.

The purchase of a work of art can be deducted as legitimate expense:
The self-employed can deduct 1% as costs. A company or firm has the ability to deduct the entire cost of the works purchased with a tax saving of 35% over 5 years (7% per year), provided that they are present in local representation.
Good artists, if they become acknowledged, can be regarded as a bargaining chip with the State with regards to the payment of inheritance tax (Art. 4 and 5, Law n. 512 / 1982).
From January 2002, businesses that donate works of art or sponsor cultural projects, benefit from a deduction of 37% when operating in the market for at least 3 years (Art. 38 related to the fiscal 2000 Financial - Law 8/11/2000 n. 342).

Profitability, accessibility, diversification:
The initial value of an investment on the purchase of a work of art can be very fruitful, given the wide margin of appreciation that can be obtained from the initial capital outlay.
But even more significant and unique, is the intimate, aesthetic, cultural and personal benefits you will enjoy when dealing with paintings, sculptures and performances; art forms which transmit a sense of well being are hardly ever found in other types of investment. The person who has the opportunity and the need to invest their savings will not want to risk everything in a single type of investment; therefore they would do well to diversify their outlay in other sectors such as real estate, finance, and most certainly, in the world of Art. An investment in art can be very different even to those already from the Art world, considering the different historical artistic periods, techniques for creation; in principle it is advisable to think about art as a long-term investment, a couple of decades at least, in order to achieve significant returns.




And why not give art as a gift?