By Ana Muñoz Vita
Spaniards declared ownership of works of art and antiques worth €669.5 million in 2019, according to data on the wealth tax recently published by the Spanish Tax Agency . This figure represents 41.82% of the total amount of luxury goods declared, while the remaining 58.18% (€931.5 million) corresponds to a more general category that includes jewelry, furs, vehicles, boats, and aircraft.
The value of these types of goods has increased steadily since 2011, when luxury possessions worth €845 million were reported, compared to €1.6 billion in 2019. However, art has grown at a greater rate, with the declared value increasing by 120% in eight years, while other high-end products have increased by 71%. Thus, while in 2011, works of art and antiques accounted for 35.6% of total luxury goods, they now represent 41.8%, according to the latest published data.
The progression is even more striking when looking at the 2007 data, when luxury assets worth €1,551.4 million were declared, of which only 12.52% (€222 million) corresponded to properties related to the art world. However, between 2008 and 2011, the formal obligation to file wealth tax was eliminated, so it is not possible to clearly analyze what happened in the years immediately following the crisis.
After recessions, there is a greater willingness to diversify investments. This is how Enrique del Río, founder and CEO of WeCollect , sees it: “Whenever there is an economic or financial crisis, investments diversify into other assets.” A view shared by Elisa Hernando, CEO of Arte Global and Red Collectors . “Those who reach these levels don't do so merely for aesthetic reasons. Of course, they want something they like, but they also look for something that can appreciate in value over time,” says the expert, who recommends seeking advice to optimize investments. Hernando also suggests the entry of new generations of consumers, thanks to new digital platforms, as one of the possible causes of the growth in property prices.
The case of Madrid stands out, the only region where art has a greater presence (57.76%) than other luxury goods (42.24%). The region of Madrid is also the only one with a 100% discount on the wealth tax , so these properties are not taxed. But Hernando believes that interest in the cultural sector goes beyond this. “Madrid is the region with the most art galleries. Even those located in other areas are opening a second location in Madrid. Art fairs are also here, and we are used to seeing art in a much closer way,” the expert points out, while also noting that most of her clients are in the capital.
On the other hand, among the reasons that could lead to a gradual decline in the value of declared luxury goods, Cira Cuberes, a partner at Bain & Company, highlights the rise of rentals and the secondhand market for high-end products. “Although this segment is still small, it is growing significantly. There are things we didn't expect 20 years ago, like the fact that boats are now being rented, but it's happening. We see a trend toward making the industry more sustainable,” she summarizes.
A trend that, however, is not at odds with those who also see luxury as a field in which to invest. “If there's one thing that characterizes high-end, it's its durability and sustainability. The latter, which is now essential in any industry, has always been in the DNA of luxury, and is something that consumers value, even more so now. Quality means that the purchase of these products can be considered an investment, as they appreciate in value over time,” argues Xandra Falcó, president of Círculo Fortuny.
