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Abstract

The constant growth of the art market, in particular of modern and contemporary art, along with the market globalisation, led to a more widespread knowledge of the art taxation essentials not only among tax experts but also among art collectors.

The aim of this article, basing on the assumption that each art collection starts, grows and is eventually transmitted to the collectors’ successors, is an analytical approach upon the impact of taxation incurring on the different “collection phases”.
We outlined the impact of VAT in the different cases of domestic and cross-border acquisitions, the risk for a genuine collector to become a trader, the absence of tax on capital gains for Italian collectors, the taxes due in case of transfer mortis causa or gift inter vivos, with a specific focus on estate tax planning.
Along with the tax compliances for private art collectors, we provide an overall outlook on the art collections owned by both corporations and professionals.
Finally, the identification of the role of the art advisor assisting the art collector also for the evaluation of the tax impact in the investment in artworks completes our analysis.