In an effort to increase revenue, two French MPs proposed that the government introduce a new art tax system in the 2026 budget. The French art world also rose up in opposition, including issuing a lengthy statement with 27 signatories, including Art Basel, the leading fair company that just held its fourth edition of Art Basel in Paris; auctioneer Drouot; ADAGP, the visual artists’ rights management organization; ADIAF, which annually awards the Marcel Duchamp Prize to French artists; and the CPGA (Professional Council of Art Galleries).
Under the legislation, France will become the only major market art center to impose a wealth tax on the mere possession of art, the statement said. The latest data shows that France is the fourth largest art market in the world, accounting for more than half of the EU market value, reaching US$4.2 billion. Art Basel and UBS Global Art Market Report. The announcement stated that the shrinkage of the French art market could result in tax losses of up to 578 million euros (approximately $671.5 million), taking into account the ancillary industries driven by the art market.
“Art Basel signed this joint statement in response to concerns from its galleries and the wider French arts ecosystem that two amendments to France’s budget law in 2026 could include artworks as taxable goods, currently being debated in Parliament,” an Art Basel spokesperson said in an email. “As an active participant in France’s cultural landscape, we remain committed to supporting our galleries and ensuring they can continue to thrive.”
The new regulations were proposed by Jean-Paul Mattei of the Democratic Movement Party and Philippe Juve of the Republican Party.
“Technically, how would you tax the fact that someone owns a piece of art?” said Cécile Verdier, president of Christie’s France auction house art news on the phone. “You can tax art when you buy or sell it, but technically if the person who owns the art hasn’t purchased it recently, how are you going to tax them if they don’t sell it? Are you going to call them at home and see if they own the art? People are going to have to declare the art.
“Secondly, because people don’t want their art to be public, they will stop buying and selling art and passing it down in their families. Also, you will stop lending pieces to museums because people will try not to display their art and put their names next to the objects.”
The statement said the proposed regulations were intended to channel savings into productive investment and crack down on tax avoidance, but would actually target industries they said were “neither rent-seeking nor abusive.”
Hailey Widrig, a Paris-based art consultant, noted by phone that the proposal comes at a time of turmoil within the French government, with all parties vying for influence. “The government here changes every week,” she told art news. “It’s been very chaotic since the spring.”
She believes that the main problem is that the new tax law is inconsistent with similar laws in other EU countries, so it will put buyers and sellers at a disadvantage compared with other EU competitors. She also noted that the proposed guidelines stipulate that the value of artworks would need to be assessed, but she said France does not have an organization similar to the U.S. Internal Revenue Service, so it was unclear who would assess the value of artworks subject to tax.
For Paris dealer Kamel Mennour, the proposed tax system is a “cold shower” after the success of Art Basel in Paris. “They want to kill art with this tax,” he told art news. “It’s going to drive all the collectors away.”
Christie’s Verdier pointed out that this is not the first time a politician has taken such a move, saying that French President François Mitterand made a similar proposal in 1981.
“It’s an old story and one that comes up all the time,” she said of Mitterrand, “that this was a man who really understood what culture was and had a strong belief in trying to get rich people to pay, but they had never been exposed to art.”
