June 20, 2025, marks a historic day for the Italian art sector. The Council of Ministers has decreed that the VAT rate on the sale and import of artworks in Italy will drop from the current 22% to 5% — a momentous development. We spoke with Sirio Ortolani, President of ANGAMC (Italian Galleries Association), to gather his insights.
Who were the main players behind this historic result, and what was the initiative’s path from the beginning?
“The primary drivers were the institutional leaders: Ministers Giuli and Giorgetti, Deputy Minister Leo, the chairs of the parliamentary committees — Mollicone and Marti — and MP Amorese, who all strongly supported the reform. Without their commitment, this would not have been possible. Alongside them, the 'Apollo Group' played a key role: for the first time, the entire gallery sector acted in a cohesive and coordinated manner. Our association joined this effort, actively contributing throughout the process.
The origin of this reform dates back to the 2022 EU directive, which allowed member states to establish reduced VAT rates for selected categories. The real work involved demonstrating that the art sector deserved this benefit, also in light of measures already adopted by France (5.5% VAT) and Germany (7% VAT).”
What will be the most significant market changes for the Italian art system?
“Practically speaking, Italy will move from having one of the highest VAT rates in Europe to the lowest for the art sector. Although the reform has not yet come into effect, its positive impact will extend beyond galleries, reaching the entire value chain: artists, transporters, museums, and academies. With a more welcoming fiscal system, Italy is set to become an increasingly attractive hub for international investments and collectors.
We expect growth both in the quantity and quality of exhibitions, museum programs, and collecting. Additionally, a more vibrant domestic market will generate additional tax revenue, creating a virtuous cycle that benefits the entire sector.”
Will this significantly enhance the competitiveness of Italian entities compared to international competitors?
“Italy has historically been recognized as a prime destination for artists, gallerists, and collectors, thanks to its heritage, quality of life, and cultural tradition. Introducing a favorable fiscal framework will reinforce this appeal, positioning the country as a European leader.
It would also be desirable, alongside the reform, to promote a major national art fair capable of attracting the attention of leading international operators. This would further strengthen the domestic market and create a genuine convergence between territorial valorization and global competitiveness.”
