Tax-Free Zone for Art in China????

Beijing Gehua Cultural Development Group ( BGCDG ), a conglomerate owned by the Beijing municipal government  is trying to create a tax-free zone for companies in the arts-and-entertainment world in Beijing. The Freeport, expected to partially open next year, promises warehouses for art storage, offices for companies involved in everything from luxury goods to software design, and production facilities for film and television.

All services and goods exchanged at the Freeport, which is expected to cost  BGCDG  5 billion yuan (US$802.1 million) to build, will be free of government taxes. Last year, BGCDG  signed up English auction house Sotheby's as a partner to run an art-auction business out of the Freeport.

However not everyone thinks it’s a good idea. Critics feel  it is foolish to think creative industries would sprout the same way low-cost manufacturing did in China's special economic zone, as they are essentially different.

Right now BGCDG  is in negotiations to have the help of Euroasia Investment SA. The facility is modeled on Euroasia's existing Singapore Freeport facility, which is a high-security storage facility for art storage and tax-free trading of high-value collectibles. While a contract has yet to be signed, both said they are confident they will be able to complete a deal soon and have a facility running by 2014.

Euroasia is banking on demand from Chinese collectors who wish to avoid the hefty duties and levies on importing valuable art. Imported works of art are subject to a 34% tax of the purchased value. Many wealthy Chinese collectors who have bought art abroad have smuggled their works or played down the value of the works to customs to lessen the tax blow, but the Chinese government has begun to crack down on the evasion.

Hmmm..... so what does this mean? Well it's very interesting but a little  too chiam for people like us. But for those wealthy Chinese, that's something to look forward to!!!!

Changing art scene in Dubai

Dubai has long since been the a hub for the very rich & famous . Similarly  the Arab art scene has been flourishing and drawing the attention of global curators, critics and collectors.

What accounts for the rise in global popularity of Middle Eastern art? Well I bet , money has something to do with it. The prices of Arab art started to rise in auctions in 2007 - in tandem with Asian art prices - as more Arabs caught the art fever. When works by prominent Arab artists such as Parvis Tanavoli and Mahmoud Said crossed the million dollar mark at auctions, every wealthy Arab sat up and took notice.

Arab art boom

Only  17 years ago, there were only two galleries in Dubai. Posters were popular then, not paintings. Today, that has all changed, galleries are everywhere.  Within a short space of time, the people have started to refine their taste in art. First they started to buy paintings, but now they are buying artworks other than paintings - such as sculptures, installations and video works. They are buying art to show they've arrived. In the Middle East, as in Asia, art has become the latest signifier of wealth, status and refinement.

Well like they said,  when you have enough Ferraris and Lamborghinis, that's when you start collecting art. They are opening to art in a big way, not only are they buying it,  they've also become more open to letting their children become artists- isnt that great?  In fact according to a young artist, art is the "new, hot, glamorous job to be in". I guess the difference is they have money, don’t think there be a ‘struggling’ artist there anytime soon….lol…….

Unlike most cities around the world, Dubai, it seems, wants more artists. Its galleries now represent artists from all over the Arab region, from Egypt to Iran to Oman. Dubai has become the gateway to the art of the Middle East - just as Hong Kong is to China, and Singapore is to Southeast-Asia. What an exciting time !!! Would like to visit  one day!

Art Stage

If you are an art lover, & you've missed all the ads & newspaper reports for some reason, here is a reminder. This premier art fair ART STAGE is here, dont miss it!!!!

Art Stage Singapore will take place in Singapore for four consecutive days: from 24 – 27 January 2013 at Marina Bay Sands, Singapore.

This international trade show is unique as it will bring into lime light the importance and value of contemporary art and cultural works in the recent times. Well known and well established art industry from all over the world will take an active part in this event and will get a scope to have a face to face interaction with the reputed artists and creative workers.

Art Stage Singapore will prove to be beneficial for the art lovers and art enthusiasts as they will get a scope to improve and enhance their knowledge. The improved and enhanced knowledge will help in the advancement of art industry of the contemporary times.

Visitors' Profile

Art Stage Singapore will include visitors like art center, art gallery, financial industry, art collectors, art enthusiasts, art lovers, artists and art industry professionals

Happy new year!!!

Did you know that you can get rental income from Art?

As art investment becomes more popular , different ways of generating returns from investing in art are becoming available. A recent addition to the options available to art investors is art rental which is one of the fastest growing vehicles for investing in art because it solves the problem of illiquidity which is usually associated with art investment by using the artworks to generate an income for the owner.

 Art rental basically involves a gallery or broker selling you a portfolio or piece of art which is then rented out to the corporate sector on your behalf giving you a return which is usually underwritten and usually between 5% and 9% a year for up to 3 years. This means that you can invest in art and get a guaranteed return while you take advantage of the capital appreciation. Once the rental period is over you should get the option of either taking collection of the artworks, selling the artworks, or going back into the rental program and continuing to earn a return.

 The gallery or broker that sells you the work will rent your artwork out to businesses and organisations for them to put in their offices and boardrooms, etc. and will take a small cut of the rental fees they charge them, passing on the rest to you.

 Before agreeing,  should first get any agreements looked over by a lawyer and make sure that the artworks will be fully insured at all times (usually at the expense of the gallery/broker) so that there is no risk to you should anything untoward happen to your artworks while they are being rented out.

 But why would  the corporate sector  rent artworks for their offices rather than buy them, well, there are several reasons. The first reason is that often a company cannot justify purchasing artworks to their board or investors. Secondly, renting artworks allows the company to change the artworks they are displaying every so often without cost to the company and the final reason is that there may be tax breaks involved for the company by renting art.

Professionals Art Thieves ???

In general it's rare for a museum to be robbed by 'professional art thief' . Why?

Because it's very difficult to pull it off!!! First of all,  how to assemble a team of people like guys from Ocean 11...lol... It only happens in movies. Think Thomas Crown....hahha... love that movie!

The Son of Man by René Magritte

Besides even if it can be done, the aftermath publicity makes the stolen items too recognizable & it'll be difficult to get buyers!!! Who would pay so much for something they cant show to others after?

Once the art thief realizes that it's too late, he'll go on to other things while the stolen items lie dormant in some hideaway possibly in a garage or storehouse until he figures out what to do with it....lol.....

Lots of intelligence has been gathered now by the police. For instance they found out that more than 90% of these crimes involves some insider information. So what they usually do is to look for links between past/ present employees & local gangs & criminals. But prevention is always better than cure, so enhanced staff background checks & discreet observation of visitor behavior helps a great deal.

Art Thefts

When one talks about art, one will naturally think of Art Thefts as well. It has been glamorised often by Hollywood. I never forget the first time I saw Thomas Crown Affair. Love the movie. It's smart beautiful but mostly it' s about my favourite subject...lo.....

As it is, in reality, art thieves are not the same ones we see in the movies. Instead they are the usual opportunistic criminals who are often short sighted as well.

E.g the 1961 theft of Goya's Duke of Wellington from the National Gallery in London. Everyone thought some very smart art thieves are responsible for it. The real thief turn out to be a retired cab driver who's pissed at the BBC licensing cost. He stole the painting by entering the museum through bathroom window.

In 1973, C Horsley got arrested for stealing 2 Rembrandts from the Taft Museum. After serving a prison term, he was arrested again & this time for shoplifting toothpaste & sweets!!!!