The most unregulated industry which you can find on the earth is Art. Though you can exchange with cost over the auction houses, they hide the auction business from government rules and regulations and from public as well. They won’t release the names of bidders or the consigners. With the increase in art trading globally, every country has developed their own unique legal framework in order to regulate the art work exports and imports. If you wish to send the works to overseas then you may need to pay custom duties.
Mostly there are 2 shades of hidden aspects when you are looking for the global trade art – the offshore one and the informal economy. Offshore is more or less the exchange or the transfer of assets by passing the regulatory authorities. Informal is the unrecorded or unregulated or can be both. The current value of the global art trade would be around $57 billion which is just a small piece of the total global economic production. But as the arts market is unregulated it has become a large source to accumulate and divide the capital throughout the world. By examining the economic activities of offshore you can now let the global art market to develop and flourish.
With the latest developments and innovations the emergence of Freeport is one of the best and secured ways to store your art works. Freeport is a place where you can now store your valuable goods and no one would be allowed to enter there without prior appointments throughout the world. The art works are also stored in the bank vaults.
The storage facility which is formal and located outside the territorial jurisdiction of a country is known as a Freeport. Geneva Freeport has been seized due to some scandal. It was actually created in the year 1888 in order to store various agricultural products. The best thing to know about the Freeport is that you can avail the temporary tax exemption for unlimited time. As no one could store grains for unlimited period of time, the commodities which are more valuable and worthwhile such as wine, art, gold bars etc have been stored for a longer time. By storing the art works in a Freeport, you can now keep them free from foreign government, the tax authorities or the insurers for your art works. It means that you need not pay any kind of tax for your art works and can sell them without any kind of tax. There are several Freeport available all around the world such as the Geneva Freeport, or the Freeport in Zurich Switzerland, Singapore and more.
According to the reports, it is said that the Freeport in Geneva and Zurich have believed to contain a net worth of $10 billion paintings, gold, sculptures, carpets and several other items each. It would be best option for the investors who would like to invest in ventures that are tax free. Natural Le Coultre is owned by Yves Bouvier who holds the Freeport located in Singapore, Monaco and Luxembourg. A free port is the best place for all those who would like to wait until the value of the art increases and you cannot be taxed on these assets by the government.
Freeport would be the best place for if you would like to keep your artworks secretly and you need not pay any sales tax over there. Around 28% of the art collectors and the art professionals when surveyed said that they used Freeport and would stay in touch with the providers. About 43% of art professionals got to know that Freeport facilities have been used by most of their clients. 42% of art collectors also used these facilities. It would benefit the investors in a great way.
No one can say whether the art work which has been stored at Freeport is a stolen one or just an investment or bought from the drug money. As you are not exporting the art work and just putting it in Freeport and it is not entering in to another country no duties have to be paid and you are not breaking any law.