The Impact of auction rights on the Art market

The commissions applied by auction houses, known as “auction fees,” represent a crucial element in the art market, influencing both buyers and sellers.

These fees vary significantly among the different auction houses and can significantly affect the final price of the works.

Structure of Rights in Auction Houses

Auction houses apply fees to both buyers (buyer’s premium) and sellers (seller’s commission). For example, Pandolfini Casa d’Aste retains a commission of 13% (plus VAT) on the sale price, deducted from the seller’s proceeds.

For buyers, the auction fee amount added to the hammer price is 26% up to 250,000 euros.

Another Italian auction house, Colasanti, applies a decreasing commission for sellers:

• 4% for the part of the selling price up to 50,000 euro;
• 3% for the portion between 50,000.01 and 200,000 euros;
• 1% for the part between 200,000.01 and 350,000 euros;
• 0.5% between 350,000.01 and 500,000 euros;
• 0.25% for the portion exceeding 500,000 euro citeturn0search3.

Cambi Casa d’Aste, on the other hand, retains a commission of 15% on the hammer price, with a minimum of 30 euros, in addition to a 1% as insurance reimbursement.

Comparison of auction rights with International houses

The main international auction houses, such as Sotheby’s, Christie’s and Phillips, apply commission structures that can reach up to 30% for amounts up to one million dollars. These percentages can vary based on internal policies and specific agreements with clients.

Implications for the Italian Art Market

The high commissions and the bureaucracy associated with artistic transactions in Italy can represent a deterrent for exchanges and the export of works.

According to an article from L’Espresso, the long times to obtain the certificates of free circulation and the high costs hinder the export of works, discouraging internal exchanges and positioning Italy at the bottom of the sector’s ranking.

Despite these challenges, the Italian art market has shown resilience. In the second half of 2024, the main Italian auction houses recorded a revenue of over 116 million euros, although down compared to the previous year.

In 2023 the art market in Italy had recorded a total value of over 1.3 billion euros, with a constant growth in the export of works of art, design, and furniture to strategic foreign markets such as the United Kingdom, France, and the United States.

Furthermore, beyond the issue of auction rights, one of the main challenges of the Italian art market concerns the VAT rate applied to works of art. While countries like France have reduced VAT from 20% to 5.5% and Germany from 19% to 7%, Italy maintains a higher rate, creating a significant competitive imbalance.

Amelia Tomasicchio

As expert in digital marketing, Amelia began working in the fintech sector in 2014 after writing her thesis on Bitcoin technology. Previously author for several international crypto-related magazines and CMO at Eidoo. She is now the co-founder and editor-in-chief of The Cryptonomist and Econique.

She is also a marketing teacher at Digital Coach in Milan and she published a book about NFTs for the Italian publishing house Mondadori, while she is also helping artists and company to entering in the sector. As advisor, Amelia is also involved in metaverse-related project such as The Nemesis and OVER.