How does the tax regime for donations of works of art work in Switzerland?
In Switzerland, donations of works of art are subject to specific tax regulations. Donors may benefit from tax deductions, provided that the works of art are given to a recognized institution of public utility and that legal criteria are met.
The legal criteria for qualifying for the tax deduction include, among other things, the obligation for the beneficiary institution to keep the artwork for at least 20 years, the prohibition for the donor to dispose of the artwork during the conservation period, and the obligation for the beneficiary institution to exhibit the artwork permanently.
The tax deduction is calculated based on the fair market value of the artwork at the time of the donation. The percentage of tax deduction varies by canton, but it is generally around 20% to 30% of the fair market value.
It should be noted that the tax regulations for donations of works of art are complex and vary depending on the specific circumstances of each case. It is therefore recommended to consult a tax expert before making a donation of a work of art.