July 2025 – A long-awaited fiscal measure could finally give new momentum to the Italian art market: the reduction of VAT to 5% on works of art, antiques, and collectibles. We spoke with Francisco Schenone, Director of European Operations at Crown Fine Art, to explore the implications of this significant change.
“This is the news we’ve been waiting for years,” says Schenone. “Although Italy is one of the world’s major art centers, its tax system has historically been less competitive than other European markets. Reducing VAT to 5% is a fundamental step toward revitalizing the domestic market and attracting foreign collectors and investors.”
According to Schenone, the potential impact could be considerable.
“Lower VAT reduces the final cost for buyers, making valuable works and collectibles more accessible. This will likely stimulate sales, especially in the primary market, where VAT directly affects the price. Additionally, it may encourage the repatriation of Italian artworks previously sold or held abroad in countries with more favorable tax conditions.”
Early indicators are promising.
“We’ve already seen an increase in quote requests for international imports and shipments. Some galleries are preparing to bring back works currently located in London, Paris, and New York. Even auction houses are adjusting their calendars to take advantage of the new tax framework.”
From a logistics perspective, Crown Fine Art expects an increase in volume between 15% and 25% over the next 12 months.
“We anticipate significant growth in both international and domestic shipments, along with increased demand for complementary services such as museum-grade packing, climate-controlled transportation, customs management, and specialist insurance. Temporary storage for artworks is also receiving more attention.”
This surge could also have a positive impact on employment.
“Higher volumes will require more skilled staff — trained drivers, packing technicians, customs experts. We also foresee growth in the broader art sector ecosystem, including restorers, art photographers, curators, and cataloging specialists. It’s a great opportunity to create qualified jobs.”
However, Schenone also highlights some future challenges.
“The coexistence with the margin scheme, widely used in the secondary market, could create uncertainty. The new regulation requires choosing between reduced VAT and the margin scheme, which may lead to confusion. Clarifications will be essential regarding the application of the new VAT rate to temporary imports and consignment sales.”
Navigating this transition will require regulatory updates and targeted training.
“Industry professionals — gallerists, antique dealers, logistics providers — must adapt quickly. We’re organizing seminars with tax experts for our clients to ensure compliance and prevent mistakes that could lead to penalties or disputes.”
With this initiative, Italy becomes more competitive within the European market.
“A 5% VAT aligns us closely with France (5.5%) and Germany (7%), making Italy much more appealing to international collectors who previously preferred buying elsewhere. It also reinforces Italy’s strategic role as a logistics hub for art in the Mediterranean.”
Schenone also sees new opportunities for fairs and events.
“Some organizers are already considering Milan and Rome as venues for major international art fairs. The reduced VAT makes Italy an attractive option for foreign exhibitors, allowing them to make local sales under a more favorable tax regime.”
“In conclusion,” says Schenone, “this measure marks a crucial turning point. It must be accompanied by clear regulations and investments in professional training. If properly managed, the initiative could boost the market, increase business volumes, create jobs, and solidify Italy’s prominent role in the global art scene. It’s an opportunity we cannot afford to miss.”