BRAFA 2025: What to know before buying a work of Art

1. The fairs, an essential meeting

The Brafa looks like a large and magnificent temporary museum, bringing together some 130 galleries from all over the world that exhibit objects of all kinds: paintings of ancient masters, jewelry, books, prints, tapestries, old furniture or design … but Works of modern Art (first part of the 20th century) and contemporary art (after the second war, even the early sixties) occupied more and more space. And for contemporary art galleries, this is an unmissable event, even if he does not (yet?) The aura of the star of the fairs market, Art Basel and his four variations Annual (in Basel, Miami, Hong Kong and Paris).

These fairs are somewhat the response of the galleries to the rise in power, over time, of the auction rooms which mobilize a large part of the media attention. They allow gallery owners to achieve a large part of their annual turnover. “”We are first there to sell, recognizes a gallery owner. Particularly because participation is far from being free: my stand costs me 1,000 euros per square meter, it is therefore an important investment that must be able to make profitable.”

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But other advantages of the Brafa are important: “The impact of a work presented there, seen by tens of thousands of people, is much more important than that which one has in a gallery or during an exhibition, reports Rodolphe Janssen, gallery owner for more than 30 years in contemporary art. Such a fair also represents an opportunity to ask for new works from our young artists as well as to meet collectors from around the world with whom we are often in contact by interposed emails. “

2. Art pleasure, investment art?

Eternal question. For experts, art cannot be summed up in an investment. “”Artistic heritage is really a particular heritage. It is an investment that is above all a pleasure, being surrounded by beautiful objects. It is therefore an emotional investment but to which it is necessary to give a financial value. It can not be only emotion, we do not pay any price for a work because we like it, Indique Christine Mostert, Head of Art Advisory Services au Sein de la Banque Privée Degroof Petercam. But we do not consider that art represents a class of full -fledged assets, as are shares and obligations. And we therefore do not recommend our customers to invest part of their portfolio in art. On the other hand, to our customers who wish to acquire art, we explain how this market works so that they can find their way and support them in their efforts. And we also have, among our customers, very active collectors, of which it has almost become the main occupation and which carry out all the sales and purchase operations involved in the management of a collection. “

3. At what price?

Contrary to what we sometimes believe, most of the works today on sale are at relatively reasonable prices, especially in contemporary art. Thus, according to ArtPrice, online sales platform, sales of less than $ 5,000 represented 82 % of total auctions in this segment (108,000 out of 132,000 operations between mid-2023 and mid-2024). “”What the general public often retains is records, these paintings or these collections that are sold at a high price like the Allen collection (Founder of Microsoft, Editor’s note) In 2022, for $ 1.6 billion at Christie’s. But he forgets a little quickly that it is the segment of contemporary art that carries the market today, with prices that remain attractive “underlines an expert. And this is logical, according to Christine Mostert: “Contemporary art is currently more affordable than modern art, whose beautiful pieces are already very expensive. As for quality impressionist works, they are most often in museums. “

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4. What should not be forgotten …

We do not start down in the purchase of works of art. “”You must first try to be well accompanied, a lot inquiring, see exhibitions, entering galleries, asking questions to have an idea of ​​the market: why does a work of such an artist are worth such a price and why a Is the work of another artist six times more expensive when they are the same age, that they are in the same gallery? This is not obvious at the start “, underlines Christine Mostert.

Other points of attention are essential. “”For the first market (that is to say works by living artists often represented by a gallery in a determined territory, editor’s note), Attachment to the work is essential. And for the second market (Sales rooms, merchants)you have to be very careful about what is called the due diligence. The work, of course, must be authentic and in good condition. You have to know her story, in what hands she has passed, to ensure, for example, that it is not a work robbed during the war because there is no prescription that applies in this case. And, of course, the artist must be a talented artist and the work must appear in a good place in his work. All this will determine the quality and price of the work on the market “, Indique la Responsable “Arts” De Degroof Petercam.

Do not forget, moreover, the additional costs, including insurance: “Generally, specific insurances cover works of art. The higher the work, the more fragile it is, the higher the insurance premium. Because the greatest risk with a work of art is that it is damaged. It is a greater risk than theft, the concealment of works of art being rarer than for jewelry or silverware, for example, which are easier to resell by the receivers “, notes Christine Mostert.

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Documenting your purchases well is also essential. “”The authorities today force us to do the gendarmes in the context of anti-flowage measures “explains Serge Maruani, from the Maruani Mercier gallery. What Steven Osaer confirms, Head of Estate Planning at Delen Private Bank: “In recent years, it has become more and more important to be able to prove the origin of your heritage. Today, not only the tax authorities question you about the origin and the history of your heritage but other people And institutions such as bankers, wealth managers, notaries and traders are also legally obliged to do so. Antiquities, and it is often not so simple. 10,000 euros “, specifies the manager of Delen.

And two last elements are also to be taken into account in terms of investment: the unpredictable yield of a work of art and its little “liquid” character.

One, the yield: “It is not a rectilinear marketRappelle Christine Mostert (Degroof Petercam). There are fashion effects. There are times when certain periods are forgotten, when artists are forgotten. Other moments when they are ‘rediscovered’. This was the case for pop art: at one point, the ratings were quite low. Then pop art was ‘rediscovered’. And today, Andy Warhol’s paintings are among the most expensive in the world “.

Steven Osaer (Delen Bank) is of the same opinion, he also notices “that it is difficult to assess art. Art is often subject to trends. It is not because you buy a work from an artist from whom you believe that the amount of your purchase will then prove to be a good investment. It is possible but not predictable “.

And the fact that the art world has become globalized and that artists are more and more numerous is another factor of unpredictability: “These new artists have been added to existing artists and deceased artists. At one point, the market cannot swallow everything, it makes choices and certain artists or certain periods of art can suddenly fall into oblivion “note a gallery owner.

Two, “We must not forget, if we reflect as an investor, than a work of art is less ‘liquid’, therefore more difficult to sell, than is a movable portfolio, an action or an obligation, recalls Christine Mostert ,. And we must therefore often consider such a long -term investment. “

5. Values ​​not taxable, in principle

On a tax level, works of art have a rather attractive character. “”They are considered to be part of the private heritage of a person. Beyond VAT during the purchase, there is therefore no specific tax treatment for works of art. It should not be mentioned in his declaration and a potential (strong) added value when the resale of a table or a sculpture, for example, will not be taxable “explains a fiscalist.

Please note, however: the taxman is increasingly suspicious about the principle of “normal management of private heritage”. In recent years, he has targeted private taxpayers whom he considered as having too “speculative” approach, because of certain elements such as the frequency of transactions, excessive use of loan or their particular knowledge of the world of art.

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6. What in case of succession?

The question of (family) transmission of works or a collection should not be forgotten but ideally anticipated. “”Having an inventory of its collectors allows you to consider planning more serenely towards future generations. Thanks to simple planning measures, such as a manual donation of a work of art (without payment of donation rights if the donor does not die during the “suspect” period: 5 years in Wallonia and Flanders, 3 years in Brussels, editor’s note) or a donation with usufruct reserve (Payment of donation rights by 3 % or 3.3 % in direct line)it is possible to optimize the inheritance pressure during death “precinise steven osares (DELLED PRIVATE BANK).

It remains to be seen whether the next generation will have the same taste for works of art. “This is why we always meet the collector, to know his point of view and understand the family dynamics, Indique Christine Mostert (Degroof Petercam). And what will make things very objective is to carry out the inventory and the evaluation of the collections. And then there will be a family discussion. Can the collection be given to children in joint possession, with parents who can keep its usufruct, so continue to enjoy it? Is the collection important enough to create a vehicle, such as a private foundation for example, which allows it to remain whole … But always arrive, at one point, the following questions: the collection must remain a whole or be Divided, how to divide it fairly between children, is it not better to sell at a given moment, how, when? Most of the time, however, I note this, and that is delighted: children are quite respectful of emotional investment in an art collection that was made by their parents. And parents impose things on their children less and less. Their major concern is to say: my children will not want to keep our works or our collection but we want them to know how they should do if they want to sell it. “