The Spanish art trade is breathing a huge sigh of relief after the government decided last week to slash sales tax on works of art to 10 per cent, down from the previous punishing rate of 21 per cent, introduced in 2012. The welcome news comes three weeks ahead of the opening of Arco, the country’s leading art fair.
The cut was welcomed by Arco director Carlos Urroz: “The 21 per cent tax was terribly hard for Spanish galleries, and it sapped confidence among buyers,” he said. “We hope this change will [give] collectors the will to spend again.”
Spanish deputy prime minister Soraya Sáenz de Santamaria said the government had recognised that the previous rate was a “brake on the competitiveness of the Spanish art market” – with the equivalent tax standing at 10 per cent in France, 6 per cent in Belgium and 7 per cent in Germany.
Georgina Adams FT