ART IS TAX EFFICIENT

Foreign Trades Zones or Free Trade Zones (FTZs)

The development of the Art market and the explosion in the number of trade fairs and exhibitions worldwide have led to greater volume and faster circulation of Art works. Yet transport costs plus various international taxes can significantly dampen these movements.

One response to these obstacles has been the Foreign or Free Trade Zone (FTZ). FTZs have become an essential tool of trading and storage of various goods including Art works. They are port areas in which goods are loaded, unloaded and supervised by Customs authorities while being exempt from many taxes. During its transit, a work may change hands several times while only the final purchaser will pay the taxes due in the country of destination. This constitutes the main financial appeal of the FTZs.