Menorca Art Galleries Join National Protest Against 21% VAT on Cultural Sales
Three art galleries in Menorca have shuttered temporarily as part of a nationwide protest against Spain’s “discriminatory” VAT rates on cultural goods. Encant and Artara in Maó, along with Etesian in Ciutadella, joined over 100 Spanish galleries in a coordinated closure from February 2-5, 2023, demanding tax equity with other European nations.
The VAT Disparity Crisis
The Consortium of Contemporary Art Galleries emphasizes that Spain’s 21% VAT on gallery sales – the highest in Europe – creates unsustainable competition:
- France: 5.5%
- Portugal: 6%
- Germany: 7%
- Italy: 5%
“This 21% VAT represents inequality compared to our European neighbors,” states Elvira González of Encant Gallery. “For Menorca, where foreign clients comprise 40% of our market, it actively hinders sales.”
Artist-Gallery Tax Discrepancy
Gallery owners highlight a critical inconsistency: While galleries pay 21% VAT, artists selling directly pay only 10%. Susana Marquès of Retxa Gallery calls this “an uncompensated gap that disadvantages established cultural businesses.”
Historical Context & Sector Comparisons
Spain’s art VAT increased from 8% to 21% in 2012 during Mariano Rajoy’s financial crisis reforms. Other cultural sectors have since secured reductions:
- Cinema: Reduced from 21% to 10% in 2018
- Books/newspapers: 4% VAT rate
The galleries’ demand aligns with EU Directive 2022/542, permitting member states to apply reduced 5-8% VAT rates for cultural goods.
Artist Solidarity & Economic Impact
Local artists strongly support the protest. Painter David Monrós notes: “Galleries undertake essential promotion that individual artists can’t manage alone.” Former gallery owner Maties Sansaloni adds: “They’ve operated at a competitive disadvantage for over a decade.”
Tourism’s Double-Edged Effect
While Menorca’s 30% increase in cultural tourism since 2019 has benefited galleries, seasonal foreign firms like Madrid-based Cayón and Albarrán Bourdais have intensified market pressure. Gallery manager Andrés Moll observes: “A VAT reduction could reactivate local sales during our crucial pre-season period.”
Pathway Forward
The protest highlights how Spain’s cultural taxation conflicts with its €12.6 billion arts economy (Ministry of Culture, 2022). With 83% of Spanish galleries being micro-businesses, sector leaders urge policymakers to implement EU-allowed VAT reductions before summer 2023.
For complete coverage of Menorca’s cultural policies, visit the source article here.
Images Credit: www.menorca.info