Art leasing: your tax asset for inspiring premises

1. What is the leasing of works of art?

Artwork leasing, or leasing with an option to purchase (LOA), enables a company to rent one or more works of art for a fixed period, generally from 13 to 60 months. At the end of the contract, the company can choose to acquire the work for a residual value, often very attractive (around 3% of the initial price). This system, inspired by automobile leasing, is mainly aimed at companies subject to corporate income tax (IS) or the liberal professions under the BIC regime.

How does it work?

• The company selects the works from a gallery or specialized service provider.
• It signs a leasing contract for a duration and amount adapted to its needs.
• The works are installed on the premises, accessible to employees and/or the public.
• At the end of the contract, the company can purchase the work at low cost, return it or renew the lease with new pieces.

2. The tax and financial benefits of art leasing

Optimal tax deduction

Lease payments are considered operating expenses, and therefore 100% tax-deductible (article 39-1-1° of the French General Tax Code). This reduces corporate income tax, or income tax for the self-employed, while enhancing the appearance of the premises.

Costs and preservation of cash flow

Unlike direct purchase, which ties up a large sum of money, leasing enables payment to be spread over several months or years, facilitating cash flow management and not impacting the company's borrowing capacity. This rental expense is entered in account 6068 of the general chart of accounts, in the same way as the rental of furniture or plant.

Easy acquisition

At the end of the contract, the company can acquire the work for a very low residual value (often 3% of the initial price), or choose to renew its artistic environment with other works.

Encrypted example:

• Direct purchase of a work: €10,000
• 24-month leasing: 24 x €496 = €11,904
• Tax savings generated: €3,847
• Total cost after deduction: €8,064 (compared with €10,000 for direct purchase)

3. An asset for brand image and well-being at work

Image valuation

Integrating art into your premises is a way of affirming your values, creativity and commitment to culture. It enhances the company's appeal to customers, partners and employees.

Stimulation of teams

Works of art create an inspiring work environment, promote creativity, reduce stress and strengthen team cohesion. Some companies report an increase in employee satisfaction and motivation after installing artworks in their offices.

Renewal and flexibility

Leasing allows us to change the artwork on a regular basis, so that the space is always renewed and adapted to the evolution of the company's image. This encourages innovation and internal dynamism.

4. An accessible and customizable device

For all companies

Art leasing is not just for large organizations: SMEs, start-ups, the self-employed and even associations can also benefit. Providers offer packages to suit all budgets and needs, from simple photographs to monumental sculptures.

Tailor-made

Specialized companies (such as InRealArt) assist companies in choosing works of art, installing and hanging them, and making the most of the space. It's even possible to commission custom-made works from artists selected to respond to specific themes.

5. Comparison with patronage and direct purchase

Leasing vs patronage

Patronage of the arts allows you to support projects or artists, but it's a donation with no direct return, limited to a tax reduction of 60% of the amount paid, up to a limit of 0.5% of sales. Leasing, on the other hand, allows art to be integrated into the premises, benefiting employees and customers alike, while deducting 100% of the rent.

Leasing vs Purchase

A direct purchase ties up a large sum of money, is not tax-deductible and locks in the artistic choice. Leasing, on the other hand, offers flexibility, tax optimization and regular renewal of works.

6. Concrete examples and feedback

Testimony of an SME

A Marseille-based communications company rented a series of contemporary photographs for €200 a month, thus avoiding a substantial initial investment. The result: transformed offices, a modernized image and very positive feedback from customers and staff alike.

Coworking space

A coworking space chose to lease a number of abstract works to decorate its communal spaces. Thanks to leasing, it has been able to regularly renew the selection, creating a constantly inspiring environment for its members and reinforcing its innovative positioning.

7. The steps to get started

• 1. Define your objectives: image enhancement, team well-being, communication, etc.
• 2. Choose a specialized service provider: gallery, leasing company, online platform.
• 3. Select works: according to space, budget and corporate values.
• 4. Sign the leasing contract: duration, amount, purchase option.
• 5. Installing the works: the service provider can accompany you.

8. Vigilance points

• Compliance with tax ceilings: it is recommended that annual rental income should not exceed 5% of sales.
• Artwork insurance: check that artwork is properly insured for the duration of the lease.
• Accessibility: works must be exhibited in spaces accessible to employees or the public to qualify for tax benefits.

Conclusion

Art leasing is an innovative and affordable solution for all companies wishing to integrate art into their premises. It combines tax optimization, financial flexibility and image enhancement, while contributing to the well-being of employees and the attractiveness of the company. By testing art in your professional spaces, you invest in creativity, innovation and differentiation, while supporting contemporary artistic creation.