Buying Art for your Business

How to buy Art for your business? You know having art in your offices, helps reduce stress, retain employees, boosts creativity, enhances productivity and adds personality. But your a business and have to think about the numbers as well. This information is for The Netherlands as of 2024 only and you also need to talk to your own accountant.

"Left behind 9" (2020), Marko Klomp. Oil on Linen 120 x 100cm

How to buy paintings for your business?

How to buy a painting for your business is similar to buying art for yourself. Here is a how to guide to check out:

How to buy art as a beginner

The Benefits of Art in the Workplace

This page is about investment deduction, tax write offs and further accounting information that might be handy to include in your financial and thought process when buying art.

Investment deduction

Invest in art with tax benefits with KIA ((kleinschaligheidsinvesteringsaftrek)
With the KIA scheme, as a company you have a deductible of 28% of the purchase value of your art investment! Have you had a financially good year with your company and are you looking for a way to reduce this year's profit a bit? The price point of the art has to be in ratio of the profit margins and size of the business. Check with your accountant.

Labradorite 2020 Els Kampert Acrylic on Canvas 75cm 115cmLabradorite 2020 Els Kampert Acrylic on Canvas 75cm 115cm

Tax Write off

9% Tax

It goes almost without saying to businesses, buying artwork there is 9% tax in The Netherlands and can be immediately be added to their tax forms. Giving most businesses, an immediate almost 10% discount on all artworks, that private individuals do not have when buying art.

20% yearly tax write off

If you purchase art for business purposes, you must list it on the balance sheet and depreciate it over time. For instance, you might depreciate it over 5 years, with an estimated residual value of 10% at the end of that period. This process is similar to how you would handle the depreciation of office furniture or a piece of machinery. However, if the artwork is not very costly, it is often immediately recorded as an expense, similar to how utility bills are recorded. Be sure to discuss this with your accountant beforehand.

Employees

Employees can buy an artwork at its new reduced price after tax write offs for their own use at home if they have fallen in love with a piece over the years of happily working in their office. This is also a great leaving gift for employees and is well appreciated. Especially when employees had the chance to pick an artwork for their offices to decorate in the first place.

Box 3

Last gift of knowledge, as an individual, you can lower your "Box 3" assets in your yearly taxes by buying and owning art. 

Take away

Art can have a lot of tax benefits if you and your (business) accountant check, making it even more affordable and beneficial for businesses and employees to enjoy art. Want to know the benefits of Art in work place? Read the five benefits here: The Benefits of Art in the Workplace

Love,

Tascha Sciarone

Art Historian Extraordinaire.