What's Happening?
Around 200 contemporary art galleries across Spain plan to close their doors for a six-day strike from February 2 to 7, protesting the country's 21% VAT rate on art sales. This tax, increased from 8% in 2012,
is the highest in Western Europe and has been a point of contention for Spanish gallerists. They argue that the high VAT rate has hindered their competitiveness in both domestic and international markets. The strike comes ahead of Arco Madrid, Spain's most significant art fair, highlighting the ongoing struggle for tax reform in the art sector.
Why It's Important?
The strike underscores the financial challenges faced by Spanish art galleries due to the high VAT rate, which affects their ability to compete with galleries in other European countries with lower tax rates. This situation not only impacts the galleries' profitability but also the artists they represent, potentially stifling the growth of emerging talent. The protest aims to pressure the Spanish government to reconsider the tax policy, which could lead to increased art sales and a more vibrant art market. The outcome of this strike could set a precedent for tax policies affecting cultural industries in Spain.
