Art, Value and Vision: Strategies for Investing in Contemporary Art

The art market continues to grow at double-digit rates, but turning passion into a solid investment requires a methodical approach and a careful understanding of legal and tax dynamics.

Here is a summary of the key pillars I consider essential for entrepreneurs, family offices, and private investors looking to (wisely) engage with contemporary art:

• Portfolio Diversification. Art doesn't replace traditional assets—it complements them. Allocating up to 5–10% of capital to high-quality works helps reduce correlation with financial markets and offers protection against inflation.
• Due Diligence on the Artist and Provenance. CV, museum exhibitions, representing gallery, and certificates: four checkpoints that can make the difference between a strategic acquisition and a legal risk.
• Corporate Vehicles and Taxation. Personal holding companies, trusts, leasing, art advisory, or a dedicated art fund: the choice of structure affects VAT, indirect taxes, and future capital gains. In Italy, VAT on artworks is currently at 5%—a reduced rate that can be further optimized. In Switzerland, solutions do exist, but must be planned in advance.
• Insurance and Preservation. An unprotected artwork loses value. “All risks” coverage, nail-to-nail clauses, and controlled microclimatic conditions are all essential to long-term performance.
• Defined Exit Strategy. Auction, private sale, or fractional NFT? Setting the time horizon and exit channel from the outset allows for better estimates of liquidity, taxation, and transaction costs.

Contemporary art can be a high-potential alternative asset—provided it is supported by a coherent legal, tax, and curatorial strategy.

A targeted consultation today can help you avoid complexity tomorrow.

Our team remains available for further information and support.