There is a new trend for high profile art collectors that Graham Bowley and Doreen Carvajal investigate. There are more than 1.2 million pieces of art estimated to be stored in the Geneva Free Port alone, with other free ports located around the world and housing similar items.
With their controlled climates, confidential record keeping and enormous potential for tax savings, free ports have become the parking lot of choice for high-net-worth buyers looking to round out investment portfolios with art.
“For some collectors, art is being treated as a capital asset in their portfolio,” said Evan Beard, who advises clients on art and finance at U.S. Trust. “They are becoming more financially savvy, and free ports have become a pillar of all of this.”
Free ports found in tax friendly cities offer savings that art collectors are becoming aware of and attracted to; the authors citing the example of a $50 million painting bought at auction in New York, then shipped to a free port, eliminating a $4.4 million sales tax bill. Although it may be wallet friendly for collectors, many artists and fans alike are not at all pleased with the situation and prefer art to be on display for all.
For the entire story, click here: One of the World’s Greatest Art Collections Hides Behind This Fence
Posted by Allison Trupp, Associate Editor, Wealth Strategies Journal