Leasing of works of art
A turnkey solution for companies
Leasing is a method of financing that allows you to benefit from a work of art through a simple rental and to become the owner of it at a low cost (residual value) while benefiting from tax advantages. This type of financing offers significant flexibility, allowing companies or individuals to access works of art without raising large funds for a direct purchase. The amount of rent under leasing is usually set based on the value of the artwork, the duration of the contract, and other terms negotiated between the parties.
Art at the service
Businesses
This financing solution is intended for professional clients, subject to corporate income tax (corporate income tax for companies), or subject to personal income tax (IRPP) for liberal professions, according to Article 238 bis AB of the French Tax Code (CGI) of the General Tax Code.
Build a collection by smoothing out expenses over the duration of the contract, which allows access to more expensive works and build a collection faster and at a lower cost.
Rents are considered as 100% deductible expenses, which reduce your taxable income and therefore your final tax. This rental is subject to the ordinary law regime of deductible expenses (art 39-1 CGI).
The advantages of leasing
Art leasing offers companies a flexible and cost-effective approach to enriching their business environment without raising significant funds or impacting their borrowing capacity.
This solution provides access to quality works, with the possibility of acquisition at the end of the contract at a predetermined cost, while benefiting from a potential appreciation in value.
By integrating art into their workspace, companies improve their image and invest in a valuable cultural asset.
Building a collection of works of art
Art leasing is an interesting alternative to enjoy the presence of artistic works without having to buy them immediately, thus offering a more financially flexible solution.
Smooth Spending
Build a collection by smoothing out expenses over the duration of the contract, which allows access to more expensive works and build a collection faster and at a lower cost.
Acquisition of works of art without a down payment
We offer a flexible art financing service for a flexible period of 13 to 60 months. At the end of the contract, you have the option of purchasing the artwork at its residual value, thus avoiding increases in value. Unlike other types of leasing, such as hardware, there is no wear and tear with a work of art.
Corporate Culture
Beautification of professional spaces to improve well-being at work for you and your employees, to develop your corporate culture around artistic values with a strong visual identity, to create a link and a positive brand image with your customers/patients and partners: you have the choice to rent works by living or unliving artists, unlike patronage.
Possibility of forward resale
Leasing artworks offers a debt-free alternative that does not affect your bank borrowing capacity, as the rental works do not appear on the balance sheet and are not sold in the event of resale. In addition, the value of the works can potentially increase, thus providing an opportunity for added value. As a result, art enjoys a significant financial advantage and flexibility.
Optimising your tax situation with leasing
When it comes to the taxation of art leasing for companies, several considerations apply.
In general, lease payments can be considered tax-deductible operating expenses for the company. However, how these payments are treated for tax purposes may vary depending on local tax laws and country-specific accounting practices.
It is therefore essential for businesses to consult with qualified tax experts to fully understand the tax implications of leasing artwork in their specific jurisdiction.
Additionally, some tax regulations may offer special incentives or tax benefits to encourage investment in art, which can also influence a company's decision to opt for art leasing.
Deductible rents
Rents are considered as 100% deductible expenses, which reduce your taxable income and therefore your final tax. This rental is subject to the ordinary law regime of deductible expenses (art 39-1 CGI).
No impact on debt
Allows you to create a collection without creating debt, the creditworthiness with banks and financial institutions is not impacted. The debt-to-equity ratio is preserved, making it possible to make other investments necessary for your business.
Low-cost buyback of the work
The work is not part of your patrimony, therefore does not appear on the balance sheet, in the event of resale by the company, the works of art financed by this means will not be sold.
Over the duration of the rental, the work may increase in value, so it is possible to make a capital gain. Art has become a safe haven benefiting from a preferential tax regime.
Conditions
to be respected
The work must be exhibited in a place accessible to the public, such as your lobby, open space, waiting room, reception, meeting rooms, etc.
The amount allocated to the lease must be a charge proportional to the turnover of approximately 5% of the turnover excluding VAT.
Residual value
The amount is set by a deed of sale separate from the rental agreement.
It varies between 3 and 10% of the purchase price depending on whether you wish to acquire the work on a personal or professional basis at the end of the rental period.
Documents to be provided to us (subject to confidentiality)
- KBIS less than 3 months old
- Company bank details
- Identity document of the manager(s)
- Latest annual accounts
