Published on : 25 September 20203 min reading time
Since the year 2015, the turnover of the world art market has grown considerably. This is no coincidence, and many investors have already realised this. If you’re looking for a way to use a fund to make the most of it, invest in art. Here are three main reasons why you should do so.
A successful investment over the long term
For a quiet night’s sleep, a long-term investment is the solution. Indeed, this will allow you to avoid the hassle of stock market volatility. This is one of the main reasons for investing in art. The more time passes, the more the risk of losses will diminish and eventually disappear completely. Therefore, by opting for a long-term investment, you will get through the cycles of the economy. At the same time, you will benefit from multiple interest rates. In addition, a work of art kept for 5 years can be worth up to 7% per year, for a direct investment. And for a contemporary work of art, this rate can reach 12% per year. So what more could you ask for?
A multiple-choice commitment
The second reason for investing in art is the possibility of diversifying one’s assets. Works of contemporary, historical or visual art, the choice and the decision is yours. But before you invest, you need to find out in advance about the choices available to you. All you need to do is research the most famous works on the market. You should also research the artists. You will then see that there are a multitude of possible choices. And you can invest your funds not in one, but in several works at the same time. This will minimise the risk of potential damage. Also remember that diversifying your assets is the best way to preserve what you have acquired.
An investment with huge tax advantages
Investing in art has many advantages even for the layman. For a private individual with the invoice of the purchase, he has the choice between two tax options. Either a tax of 6.5% of the sale price, or a reduced capital gain of 10% after 2 years of ownership. As for a company, it will benefit at the time of acquisition from a reduction in corporation tax of 40% of the investment amount. Thanks to this investment, it will also benefit from a deduction from the purchase price of 20% per year for 5 years. In addition, individuals and companies will benefit from the donation regime, if they donate their works. This is an income tax reduction of more than 60% of the value of the donation.