The Spain’s art community is getting ready for a large-scale protest next week. Hundreds of galleries throughout Spain are now going on strike in opposition to the Spanish government’s 21% tax on sales of art. Gallery owners in Spain have expressed their concern since this extremely high tax will hurt the overall art market and put many gallery owners out of business.
The strike could take place in major cities like Madrid, Barcelona, Valencia and Seville. Many galleries may remain closed during the strike, or organize some sort of symbolic protest, in order to draw attention to the issue of the tax on art.
Many gallery owners feel that art is part of the cultural heritage of the nation, and should not be treated and/or taxed like a luxury product. They also feel that high levels of taxation decrease the general public’s ability to access and purchase art.
Many independent galleries and smaller galleries will not be able to survive because rental prices and operating expenses are rising. The 21% tax on art is just adding additional burdens to the existing stress already being experienced by these galleries and their owners.
Artists are also feeling the impact of the tax. When galleries aren’t selling full exhibits of artwork, then artists will be losing revenue and opportunities to gain exposure as an artist. For many emerging artists, struggling to get the opportunity to exhibit their work creates a delay in developing new talent within the Spanish art world.
The Art Sector Demands Fairer Taxation
The art industry is pressing for a tax policy that would help foster growth in the cultural sector through a more equitable tax rate. The gallery associations want a decreased VAT rate applied to art sales and have seen the success of other European nations with similar policies.
There are supporters of the strike that believe a lower tax rate would stimulate the overall economy; more sales would result in more total revenue for both galleries and artists. Additionally, it might attract foreign collectors or tourists who are interested in Spanish artwork.
Conversely, government representatives have stood by the tax as part of a comprehensive taxation structure. Government officials will also consider the impact on the economy with any proposed change in tax policy.
