Spanish Galleries Stage Protest Over VAT Disadvantage
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A week-long closure of galleries across spain begins today, a dramatic response to a tax disparity that dealers say is stifling the country’s art market and driving talent abroad. The protest highlights a long-simmering frustration over a 21% Value Added Tax (VAT) applied to art sales, considerably higher than rates in neighboring European countries.
Over 125 galleries across Spain will remain closed to the public from February 2nd to February 7th, with a protest poster designed by Andrés Mengs displayed at each location. Despite the closure, galleries will continue their behind-the-scenes work supporting artists, preparing exhibitions, and serving collectors.
A Taxing Situation
The current 21% VAT rate on art sales in Spain has been in place as 2012, implemented by then-Minister of Finance Cristóbal Montoro. Despite a 2022 European directive allowing member states to apply reduced VAT rates (minimum 5%) to cultural goods and services, Spain has yet to adopt the change. Italy applies 5%, France 5.5%, Germany 7%, and Portugal 6%.
Idoia Fernández, co-director of the Nieves Fernández gallery and president of the Consortium of Contemporary Art Galleries of Spain, which represents 125 firms, described the situation as untenable. “Spanish artists and gallery owners currently have the highest VAT of any European country around us,” she said, adding that the rate complicates sales and hinders the sector’s growth, which currently occupies seventh place in the world art market, representing approximately 1% of the global market.
Inés López-Quesada, co-director of the Journey Four gallery with locations in Madrid, Mexico City, and Guadalajara, illustrated the financial impact. “If a collector purchases a piece by the artist Teresa Solar from a French business, for example, he saves at least 15% VAT compared to what he would pay in a Spanish gallery. We are playing with an abysmal disadvantage.” She explained that a €10,000 artwork would cost a collector €12,100 in Spain, compared to €10,550 in France.
A Flight of Talent?
the protest isn’t simply about money; it’s about survival. pablo Flórez, director of the Ehrharrdt gallery and president of Arte Madrid (61 galleries), argued that the high VAT rate is perceived as an “insult” to the cultural industry. He noted a concerning trend: a number of Spanish artists, notably women-including June Crespo, Julia Spinola, Eva Fabregas, Laia Struh, and leonor Serrano-have not been seen in Spain as the 1990s, opting to work where they are better supported.
Olga Adelantado, gallery director at Luis Adelantado, emphasized the competitive disadvantage. “With the current rate, we often start with a disadvantage that has nothing to do with the quality of the work, but with the final price that the buyer sees.” She cited an example: a €10,000 artwork offered in paris with France’s reduced VAT would cost a collector €1,550 less than the same piece in Spain.
Artists share the concerns. Painter Kiko Pérez believes the Spanish art market needs to internationalize to survive. “The VAT reduction would help the galleries from the first moment, the artists more in the medium-long term.” Elena Alonso added that the current system undervalues the role galleries play in supporting artists and disseminating their work.
Eva Lootz, responding from her exhibition at the Casal Solleric in Palma de Mallorca, bluntly stated she found Spain’s continued submission of 21% VAT on art “incomprehensible.”
Seeking a Cultural Recognition
Fernández summarized the core issue: “Is contemporary art culture?” She believes that once Spain recognizes contemporary art as a cultural endeavor, the path to a reduced VAT rate will become clear. Numerous meetings have already been held between the Ministry of Culture and gallery associations, but a resolution remains elusive.
