The fiscal challenges of the Italian art market
One of the main issues 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.
This disparity could lead to a decrease in revenue for Italian galleries, estimated between 40% and 50%, with potentially disastrous consequences for the entire national art supply chain.
Proposals for a reform of the Italian art sector
To counter these challenges, ANGAMC and the Apollo Group are promoting a series of targeted reforms.
Among the main proposals is the reduction of the VAT rate to 5% and the alignment of Italian regulations with European ones regarding the circulation of works of art.
In particular, it is suggested to raise the value threshold for the export of paintings from 13,500 to 150,000 euros and to extend the time limit for export to 70 years, in line with European standards.
The importance of timely intervention for the art market
In a recent interview, Andrea Sirio Ortolani, President of the National Association of Modern and Contemporary Art Galleries (ANGAMC), shared his reflections on the future scenarios of the sector.
Ortolani emphasizes the urgency of an intervention by the Italian institutions. Although there have been openings for dialogue and reassurances about the willingness to reform the sector, it is essential that the promises translate into concrete actions.
With the entry into force of the new VAT rates in Europe from January 1, 2025, Italy risks falling behind, with negative consequences not only for the galleries, but for the entire cultural system of the country.
The possible consequences of a lack of intervention
If the necessary reforms are not carried out, the repercussions could be serious. In addition to the closure of numerous galleries, emerging artists would find themselves without fundamental support for their professional growth.
Museum institutions and art fairs would also be affected, with a decrease in collaborations and a reduction in tourist revenue. Furthermore, the entire art supply chain, including restorers, transporters, and other professionals in the sector, would suffer significant damage.
In short, the future of the Italian art market depends on the ability to adapt to new international dynamics through targeted and timely reforms. Only in this way will it be possible to guarantee the survival and prosperity of a fundamental sector for the culture and economy of the country.
In an interview conducted by Econique a few weeks ago, even the art critic Ivan Quaroni expressed concern mainly because he does not see an innovative trend in the art market, referring not only to Italy but in general.
Collecting in Italy
Another structural problem of the art market in Italy is the poor protection of collecting and the lack of recognition of the role of galleries in enhancing the artistic heritage. Unlike other European countries, Italy lacks clear legislation that encourages private collection and considers it a cultural and economic resource.
This hinders the secondary market and makes access to financing more complex for operators in the sector. Furthermore, the absence of adequate fiscal instruments, such as deductions for the purchase of works of art or incentives for donations to museums and cultural institutions, strongly limits the dynamism of the market.
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.
