This news is important for Spaniards because the decision changes artwork prices and turnover on the market. Abolishing the effective 4% fee on transactions via galleries and dealers will lower costs for participants and simplify the purchase and sale of works that have already been in circulation. According to Ale Espanol, Madrid authorities are tackling a barrier that has long hindered the secondary market.
The measure provides a full 100% exemption from the impuesto de transmisiones patrimoniales onerosas (ITPO) for transactions through galleries and marchantes. In practice, this means that buyers purchasing from an official dealer will no longer pay the previous fee of about 4% of the price. The benefit applies to works that have changed hands before, as long as the deal is brokered by professionals rather than private resales.
The announcement was made during Salón de Arte Moderno (SAM) at the Círculo de Bellas Artes. The organizer, gallerist and antique dealer Jorge Alcolea, brought the event into the spotlight during its ninth session, which closely mirrors the ARCO fair in both theme and audience. Authorities expect a quick impact: lowering the tax burden is anticipated to boost demand and facilitate exchanges between collectors and galleries.
According to estimates from the regional cabinet, the measure will save the sector about €700,000. Authorities see this as a chance to strengthen Madrid’s position in the external market: the capital concentrates about 30% of all galleries in the country and ranks fifth in Europe by trading volume, with a share of approximately 1% of the global market.
Regional authorities highlight the differences in the tax system: alongside this benefit, federal levies remain, including a 21% IVA. The administration points out that the VAT rate in Spain is higher than in some neighboring countries, where art enjoys reduced rates, and hopes to partially offset this with local support.
The decision was coordinated by the economy and culture departments, which consulted sector associations. The region also links the benefit with other initiatives: the budget for museums and exhibitions in 2026 will reach €9.4 million, and since 2020, the region has spent €500,000 annually on works acquisition, adding up to 332 new pieces for local collections.
In addition to direct investment, Madrid will continue to support major shows and fairs—ARCO, ESTAMPA, APERTURA—and provide grants for artistic creation. The authorities have already expanded storage at Museo CA2M in Móstoles; these actions are connected with the tax relief and aimed at creating favorable conditions for galleries and collections.
The sector welcomed the news as a long-awaited move addressing one of the market’s obstacles. The benefit for professional transactions should improve liquidity and lower transaction costs, but VAT and other state taxes still apply and remain key.
Previously, similar initiatives accompanied increased support for the arts in the region: authorities provided grants for acquisitions and backed key art fairs. This range of measures collectively boosts gallery activity and enhances the international visibility of local artists. Given the data on investments and museum budgets, the tax benefit appears to be part of a consistent regional policy in favor of contemporary art.
