What Every Collector Should Know About Buying Art Abroad

Buying art abroad doesn't have to be stressful or complicated.

While there are some necessary considerations, you can easily work with a trusted dealer to get your artwork home safe and sound. We spoke with Barbara Hoffman of , a boutique art law firm with a niche in international transactional and litigation practices.

Hoffman explained that, in general, collectors can go to art fairs and shop and arrange shipping on their own. “When things get complicated, it’s after the fact,” Hoffman explains. — If something is withdrawn, for example. If something is confiscated or you are having trouble getting your art home, an art lawyer can help you.

“Sometimes there are more complex transactions, like if someone buys a collection or something needs approval to leave the country,” Hoffman continues. "Then you need to hire an art lawyer or consultant." For standard purchases at art fairs, this is not necessary. "It's only really when you have a question," she says.

We spoke with Hoffman to answer some common questions about buying art overseas, and she gave us some advice on how to make the deal stress-free:

1. Work with an established gallery

When you're buying art overseas, it's a good idea to work with trusted dealers and gallery owners, especially if you're spending significant amounts of money. “We're not talking about buying souvenirs,” Hoffman says. We're talking about buying art and antiques. For example, Hoffman has clients who buy from the Indian Art Fair. She believes that any well-known art fair has trusted gallery owners and dealers. When you work with a recognized dealer, you will be alerted to taxes due in your country. You can also trust dealers to provide sound advice on the best way to send work home.

There are plenty of resources to find trusted art fairs featuring established galleries. Art magazines usually have advertisements and you can do research based on the specific trip you are going on. some art fairs around the world; Hoffman also mentioned Arte Fiera Bologna as a respected fair.

2. Research the work you want to buy

An excellent resource for advice is. Here you can start your research into the provenance of the work and confirm that it has not been stolen. From there, request the appropriate documentation of origin. If you are buying contemporary art, you need a certificate of authenticity signed by the artist. “If the artist is no longer alive, you should do your due diligence and find out the origin of the work,” suggests Hoffman. “Just going to the registry of lost art is due diligence if you don’t find something there.” Keep in mind that the Art Loss Registry does not cover antiques. Stolen or illegally excavated antiquities are not known until they resurface. In other words, until their theft is reported, no one knows they exist.

It is also useful to be aware of common counterfeits. “There are artists like Wifredo Lam,” Hoffman illustrates, “where there are a lot of fakes, and you have to be very careful.” If you're shopping at an unknown flea market, a frequently copied piece of art should raise the alarm that the piece should be properly vetted. When you work with a trusted gallery, your chances of encountering stolen work or fakes are less.

3. Negotiate the shipping cost

When sending artwork home, you have many options. Some companies ship by air, some by sea, and prices vary widely. “Get more than one bet,” Hoffman recommends. There is no way to know if a plane or a boat will be the most affordable and effective way to get your artwork until you ask. Work with shipping companies on cost and use competitive offers to your advantage.

Insurance can be obtained through a shipping company. Hoffman advises that you list your name as the insured candidate so that you have an independent right to recover from the insurance company in the event of a claim.

4. Understand Your Tax Liability

The US government, for example, does not tax works of art. Taxes on works of art are usually collected by the government in the form of a sales or use tax. The buyer will need to investigate if they are responsible for any taxes. . For example, if you return a work of art to New York, you will be required to pay a use tax at customs.

“Different countries have different taxation practices,” says Hoffman. If your intentions are pure, you are usually not at risk. On the other hand, providing a false declaration on a customs form is a crime. Use your resources - dealer, shipping company and insurance agent - to find out what taxes you can pay. Any specific questions can be directed to your country's customs department.

If the artwork is tax-exempt in your country, please make sure your artwork is recognized by customs. This will be appropriate if you, for example, buy a sculpture of kitchen utensils. If US Customs classifies a sculpture as a kitchen utensil, it will be taxed at 40 percent. It may seem strange, but this has happened before. In the famous case of Brancusi v. United States, the artist Brancusi classified his sculpture as "Kitchen Utensils and Hospital Supplies", which was subject to a 40 percent tax on entry into the US from Paris. This was because the title of the sculpture did not explain the piece, so US Customs did not declare the sculpture as a work of art. Ultimately, the definition of art was revised and works of art were exempted from taxes. For a more detailed explanation of the case, refer to .

5. Learn measures to protect cultural heritage

Some countries have export regulations that protect cultural property. In the United States, for example, there are rules based on our implementation of the UNESCO treaty. “I had a client who was offered something by Marie Antoinette,” Hoffman tells us. "If it's real, you can't take it out of France because they have laws against taking cultural heritage out." The United States has similar treaties with many other countries, including China and Peru. For more information on trafficking in UNESCO cultural property.

“If someone tries to sell you an antiquity, you must be very clear about the origin of such an item.” Hoffman suggests. "You have to make sure it was in the country before we had these rules." The UNESCO treaty is designed to prevent the looting of the cultural heritage of other countries. There is a similar ban on certain elements that must be preserved, such as ivory and eagle feathers. When certain items become protected, these restrictions only apply in your country. , for example, was put in place by President Obama. Only ivory that was imported before the ban in 1989, as confirmed by a government-issued permit, and antique ivory over a century old are not eligible.

Conversely, you will also need a certificate proving that the reproductions are not genuine antiques. “The client bought reproductions made to look like old sculptures,” Hoffman recalls. "They knew they were reproductions and were afraid that US Customs would confiscate them because they looked real." In this case, it is recommended to obtain a certificate from the museum stating that these works are reproductions. The sculptures and their certificate confirming that they are reproductions passed through US customs without any problems.

6. Consult an art lawyer if things go wrong

Let's say you buy a portrait of a famous 12th-century artist at a European art fair. Shipping is smooth and the item arrives in the mail after you get home. Your art hanger is suitable for hanging a piece of art, and when you look at it again, you have doubts. You make an appointment with your appraiser, who tells you it's a XNUMXth century copy. This is a true story told by one of Hoffman's clients. “The cost difference was millions of dollars,” she says. Surprisingly, there were no problems with the situation, since the transaction was made through a verified dealer. “There were no problems with refunds based on the guarantee of authenticity due to the reliability of the dealer,” explains Hoffman. The difference in price was refunded to the buyer.

When you discover a problem like this, it's wise to contact an art lawyer to resolve the situation. This will protect your assets and give you the opportunity to take serious legal action if necessary.

7. Hire a lawyer for a big deal

When you're talking about large works that are privately sold for millions of dollars, hire an art lawyer. “These are very complex cross-border deals where you really need a lawyer,” Hoffman confirms. It is important to distinguish between buying or selling a large work or collection and buying a single piece at an art fair. “If you're buying a Picasso and the seller is unknown,” Hoffman explains, “these deals involve background checks and other considerations. It is important to make this distinction."

Your partner for managing your art collection. Get insider tips on buying, protecting, maintaining and planning your estate at our website.