The Italian art market between international investors and potential to be developed

Despite having a marginal role in the global art market, Italy continues to be considered a strategic marketplace by banks, auction houses and international galleries. This paradox can be explained by a series of factors linked to its cultural heritage, the quality of the works produced and the country's unexpressed potential. According to the 2023 report by 'The Art Market of Art Basel' and UBS, Italy represents a small fraction of the global market, estimated at under 2 per cent. The market is dominated by the United States (42 per cent), China (19 per cent), the United Kingdom (17 per cent) and France (7 per cent), which together account for over 85 per cent of the total value. Despite these statistics, Italy continues to be relevant. Its art market is estimated at around EUR 1.5 billion, but most of Italy's valuable works are sold in London, New York or Hong Kong.

In recent years, Italy has seen growing interest from wealthy foreign collectors, attracted by its lifestyle and tax advantages. This has created a new elite of residents who, in addition to settling in the country, act as influential patrons. The recently introduced tax regime provides a flat tax of EUR 100,000 for those who transfer their tax residence to Italy, with an additional EUR 25,000 for family members. This incentive has led numerous billionaires, entrepreneurs and investors to make Italy their home, also taking advantage of the exemption from inheritance and gift taxes on foreign assets. The unique combination of landscapes, history and art makes Italy particularly attractive to these new residents. The possibility of purchasing and restoring historic villas, castles and mansions in Tuscany, Umbria, Sicily or Apulia lends these investments a special prestige. Italy, with the largest number of Unesco sites in the world, continues to exert a strong attraction. Buying a historic property is not just a question of economic investment, but of lifestyle and social status. Although Italy is not a leader in art transactions, it remains fundamental for art production and restoration. The country is home to some of the most prestigious schools of heritage conservation and restoration. Italian craftsmen are among the best in the world, and this craftsmanship makes Italy a key centre for those who want to commission or restore valuable works of art.

The patronage of new residents has a major impact. They not only buy Italian works of art, but also support museums, exhibitions and cultural foundations. Thanks to donations and investments, Italian museums and institutions have been able to expand their collections and organise international exhibitions, bringing Italian contemporary art to greater visibility. Foreign collectors, often American entrepreneurs, have bought historic villas and turned them into cultural centres, with contemporary art merging with historical heritage.

Both Italian and international auction houses are benefiting from the interest of foreign investors. Sotheby's, Christie's and Phillips, as well as Italian auction houses such as Cambi and Finarte, are strengthening their presence with auctions on ancient, modern and contemporary art. Italian sales attract a profile of buyers who are increasingly interested in decorating their properties with local artworks, contributing to the growth of the market.

Italian banks are also seizing these opportunities by offering art advisory services. Specialised advisors support clients in the management of their artistic assets, from purchase and valuation to succession planning and the sale of works, guaranteeing the best conditions. Art lending, i.e. the use of works of art as collateral to obtain financing without having to sell the pieces, is also becoming more widespread.