Two French parliamentarians, Jean-Paul Matteï and Philippe Juvin, have proposed a new tax regime on art as part of France's 2026 budget, which would make France the only major art market to impose a wealth tax on the mere possession of artworks. The French art world has strongly opposed the proposal, with 27 signatories including Art Basel, auctioneer Drouot, visual artists' rights organization ADAGP, the Association for the International Diffusion of French Art (ADIAF), and the Comité Professionel des Galeries d’Art (CPGA). Critics argue the tax is technically unenforceable, would drive collectors away, and harm the broader art ecosystem.
This matters because France is the world's fourth-largest art market, accounting for over half the European Union's market value at $4.2 billion. The proposed tax could trigger a market contraction, potentially causing tax losses of up to €578 million when accounting for auxiliary industries. Industry leaders warn it would discourage art purchases, sales, and museum loans, while putting France at a competitive disadvantage within the EU. The proposal comes amid political instability in France and revives a similar effort from 1981 under President François Mitterrand, underscoring recurring tensions between cultural policy and fiscal strategy.