The French art market is enraged at the new proposal, which might tax people for simply possessing art.
The new regulations were drafted by Jean-Paul MatteÏ of the Democratic Movement party and Philippe Juvin of the Republicans. The proposal is a kind of wealth tax where people who possess artworks would have to pay a tax based on the market evaluation of those works. France is the 4th largest art market in the world with an estimated value of $4.2 billion in 2024. Ever since the UK left the European Union, France accounts for more than half of the art market in the union. On paper, the new regulation stands to bring a lot of revenue for the French government.
However, the art market in France is up in arms at the prospect of this new regulation – and for good reason. In the absence of any new sales, the proposal entirely depends on self-declaration of art assets by owners. The regulation would also dissuade people from selling artworks, instead preferring to pass them down through the family. Being the first nation to have such a tax, it would put French buyers and sellers at a considerable disadvantage compared to other nations in the EU. It is estimated that the decline in art sales and related auxiliary industries dependent on the art market would result in a loss of more than $670 million in the first year alone.
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So, it is not a surprise that the French art market is vocally protesting against the proposal. A detailed statement denouncing the proposal was signed by 27 major signitories, including Art Basel, auctioneer Drouot, and groups like the ADAGP, the ADIAF, and the CPGA. Art Basel said: “Art Basel signed this joint declaration to echo the concerns of its galleries and the wider French art ecosystem about the potential inclusion of artworks as taxable goods in two amendments made to the 2026 French Budget Law, which is currently being debated in parliament. As an active participant in France’s cultural landscape, we remain committed to supporting our galleries and ensuring they can continue to thrive.”
