Art leasing is an increasingly popular method of acquiring and managing artworks among collectors, investors, and businesses. This practice allows individuals to rent artworks rather than purchasing them outright, which can offer both financial and practical benefits. In this article, we'll explore in detail what art leasing is, its advantages and disadvantages, and the precautions you should take before you get started.

What is art leasing?

Art leasing is a short- or long-term rental agreement that allows a tenant to rent a piece of art rather than purchasing it outright. Artworks can be rented for personal or business use, and the terms of the lease can be negotiated based on the tenant's needs.

Art leasing agreements can vary greatly depending on the parties involved, the artwork being leased, and the terms of the lease. However, it is common for lessees to pay a monthly or annual fee to lease the artwork, as well as to insure and maintain it. Agreements may also include clauses regarding the length of the lease, how the artwork is to be displayed, the option to purchase it at the end of the lease period, and other conditions.

The advantages of art leasing

Art leasing offers several benefits for collectors and investors, including:

Fiscal and Economic Interest

At the end of the rental contract, the works are transferred for a residual value

Beautify your premises and enhance your image. Create an environment that promotes values ​​and well-being.

Leasing allows you to spread the cost of the purchase over several months.

In addition to Article 238 bis AB of the General Tax Code, leasing promotes the introduction of works of art into professional spaces, supports artistic creation and encourages companies to disseminate the values ​​of creativity and openness.

Rents are deductible from taxable income and reduce corporate income tax (companies) or personal income tax (liberal professions).

This financing falls within the framework of the decoration and fitting out of offices in account 6068 of the general accounting plan, with the condition of exhibiting the works in a place accessible to the public within the company.

Benefits

Renting allows you to spread the cost of purchasing the work over several years (13 to 48 months)

Monthly rents are deductible from IS (Companies) or IRPP (Liberal professions) (article 238bis AB of the CGI)

Develop a high-end image with your customers, suppliers, partners, etc.