by InTrieste
In a significant policy shift aimed at revitalizing its domestic art market, Italy has reduced the value-added tax (VAT) on art sales from 22 percent to 5 percent. The move, announced this week by the Ministry of Culture, positions Italy as the European Union member with the lowest VAT rate on art, overtaking France (5.5 percent) and Germany (7 percent).
Italian artists, galleries, and auction houses had long called for tax relief, arguing that the previous rate made the country’s art sector less competitive within Europe. The change follows sustained lobbying from industry stakeholders and is being welcomed as a potential turning point for Italy’s art economy.
Culture Minister Gennaro Sangiuliano described the tax cut as a measure that would strengthen “the entire art ecosystem,” which he called “one of the most vital bastions of our cultural identity.”
According to a recent study by Italian market research firm Nomisma, the previous tax structure placed a considerable burden on domestic art dealers and collectors, prompting many to conduct business abroad. The report estimates that the VAT reduction could help generate €1.5 billion in additional revenue over the next three years, with a projected total economic impact of €4.2 billion.
Italy’s move comes amid broader discussions within the European Union about harmonizing tax policies to foster cultural industries. While VAT rates on art remain a national competency, several EU member states have adopted preferential regimes to support their creative sectors.
Market observers will be watching closely to see whether the VAT cut translates into a measurable uptick in domestic sales and international investment in Italian art. For now, gallery owners and auctioneers across the country are expressing cautious optimism that the lower tax rate could help re-establish Italy as a central hub in the global art market.
