After some time spent “artising” and travelling the world with my painting art, I finally decided to expose myself talking about a very interesting topic especially by virtue of a difficult and challenging period as the current one.
So I want to talk to you about the possibility to invest our money wisely and above all very fruitfully in art.
7 good reasons to invest in art
- It is usable! Compared to any other form of traditional investment, it allows the owner to enjoy the work aesthetically. Hanging a picture on the home’s walls is definitely different than having the a share certificate;
- It is the only industry that merges collecting and economic return.
- It is profitable over time. Investment in contemporary art works allows a much higher earning rate of return in the long term, especially in Italy and compared to the works of art of other historical periods.
- It is an element of diversification;
- Profits on the investment in art are not taxed.
- Art represents an investment opportunity whose curve is not only influenced by other investments trend such as raw materials, bonds and shares, but also remains positive even in the days of the so-called bear market.
- Those who invest in contemporary art enters the History of Culture and Art and keep it alive. Even the well-known economist Claudio Borghi is on the same line of thought: “One of the most
- terrible legacies of this crisis was the collapse of securities. From the workplace to investments traditionally considered “safe”, everything turned fragile and risky… It is therefore a good opportunity to consider an alternative form of investment like that one in the works of art which, on the contrary, is revealing unsuspected strong points.”
What “goes strong” today?
At present we are rediscovering the classic, the painting art, considered more shelter and tangible, but also pictures have a good market, as well as alternative media; in short, it depends on the artist. Among us, young artists, there is a great proliferation of techniques: the valuable advice I can give to you is that if you can see that there is talent, and that the works are favourable, you have to jump, both because thus you support a young person, and because, exactly, there is advantage.
The market often tends to propose works of already famous artists and at absolutely not good prices, considering the work of art as an investment object and not as a product of an emotion, in its turn able to produce emotions. Most of the modern artworks, furthermore, are not emotion but provocation! We have to re-establish the real value of the work of art, the true collectors are in my opinion those who follow the heart and feelings rather than the “art market” trend. In doing so not only we add value to art creation as a driving force of emotions, but above all there is the chance to do real business!
Benefits for freelancers and companies
Few companies, in Italy, are aware of the many benefits that arise from the creation of a corporate collection (company collection). Business art collections as we know them today are a phenomenon born in the US in the 30s, promoted by the first rich corporations because of substantial tax deductions. Even in Italy the subjects such as banks, insurance companies, pension funds, industrial companies but also small and medium enterprises, as well as freelancers can benefit and increase the profit of their assets by investing in artistic heritage.
One of the tax relief is that the ownership of works of art is not taxable. In addition, a company or an enterprise, has the opportunity to deduct entirely the cost of the artworks purchased, with a tax saving of 35% during five years (7% per year), provided that they are exhibited in the representation rooms, whereas freelancers can deduct 1% such as entertainment expenses, exhibiting the works they own.
Benefits for private individuals
The Italian law favours the collector and the private investor: on the profits from the sale of their works of art, there will be no taxation and the ownership of the works should not be reported on the income tax return.
That means that you can make a profit without owing anything to the Treasury.
However, for fiscal purposes, a collector is considered “private individual”, until the trading activity of the works does not assume the features of organized entrepreneurship, or does not have the requirement of the “marketability”.
So if you have decide to invest your money cleverly and wisely create your own collection, or maybe to enrich it, please take a look at the artworks for sale and help keep alive the History of Culture and Art and to enhance the value of young people who put heart and soul into what they do.
If someone wants to ask me more specific questions, I will be ready to answer.