art company taxation gallery saint martin

Art in business, non-negligible financial and tax advantages

Last updated:

For companies, investing in art is a great way to benefit from attractive tax advantages.

The art market is an opportunity to invest. If it is reputed to be inaccessible, it is not reserved for a wealthy elite. Indeed, according to the national federation of the savings bank 16% of French people have invested in contemporary art. The motivations for these investments are in particular the search for added value on resale. The art market represents an average volume of 51 billion euros of annual transactions between 2009 and 2020.

However, when it comes to investing in art, it is important to identify the issues. The market is not immune to crises. During the health crisis, the market recorded a 22% drop in investment. Thus, it is advisable to be cautious when resale may prove difficult. In this sense, before investing in art, it is important to be advised on the benefits of your investment. Both for individuals and for companies that want to invest in this sector, it is possible to get advice from specialists, antique dealers, gallery owners or experts from auction houses. The goal is to ensure the value of the works and their authenticity.

In addition, art can be a safe haven, just like real estate, in a context where financial returns are losing their superbness. Few professionals are informed of the devices in favor of art in business. To benefit from a soft taxation, it is not necessarily necessary to buy works. In reality, even T.P.E can dispose of a work of art by opting for financial leasing. To better understand the financial and tax benefits, Stephen Lafeuille, General Manager of Galerie Saint Martin shared with BORDEAUX Business the good reasons to bring art into companies. The Gallery, originally from Arcachon since 1970, is also present in Megève, Courchevel, Pyla sur Mer, Saint Tropez and Cap Ferret.

The Saint Martin Gallery of Saint Tropez from 15 minutes and 50 seconds

Investing in art: a government desire to support artistic creation

Investing in art for professionals is an operation supported by the State thanks to the provisions of Article 238 bis AB of the General Tax Code. Which stipulates in particular that “companies that purchase, from 1 January 2002 and before 31 December 2022, original works of living artists […] may deduct from the result of the year of acquisition and the following four years, in equal fractions, a sum equal to the purchase price”.

Alongside the purchase of works of art, financial leasing, also called “leasing” by language habit, facilitates the introduction of works of art into companies. It supports artists by sharing values of creativity.

Art is also an excellent communication relay, acting on the well-being of employees and customers by improving workspaces andbrand image.

Financial leasing: the right investment in art for your business

With finance leasing, rents are expenses deductible from the taxable result. In this way, they allow companies that choose this vector of communication, to reduce their corporate taxes. This measure also benefits the liberal professions.

The entrepreneur must only check that the rents are not disproportionate to the means of the company.

contemporary art pop art company image taxation deductible expenses
Advantageous taxation for companies that invest in the works of living artists

Almost systematically, our customers whose contracts end leave on a new rental of one or more new pieces, allowing them to access the current market of contemporary art.

Stephen Lafeuille, General Manager of Galerie Saint Martin

Galerie Saint Martin, a selection of living artists to exhibit in companies

Galerie Saint Martin is a family business created in 1970. Originally, the first gallery was born in Arcachon. The current general manager, Stephen Lafeuille grew up there and claims this historical and heart anchorage. In 50 years, the Galerie Saint Martin has taken off to also establish itself in Megève, Saint Tropez, Courchevel… As well as two new addresses on the Bassin d’Arcachon: Pyla sur Mer and Cap Ferret.

It exhibits contemporary art, neo-pop-art and street art. Paintings and sculptures by living artists, mostly French, who shine internationally.

These works are of interest to companies with a regional dimension wishing to take advantage of tax measures and promote art in business.

The end of the year is always for some companies, a period when we are looking for solutions to optimize our taxation.

Stephen Lafeuille

To adapt to the constraints and desires of each company, Galerie Saint Martin offers tailor-made solutions for each professional and the different desires for commitment.

Abonnez-vous à la Newsletter

X