While the art market continues to develop positively in the Principality of Monaco, with an increase in the number of auctions for example, the legal framework was proving to be unsuitable and often less favourable than those of neighbouring States.
The Monegasque Government has therefore modified the legislation on droit de suite in a new law n°1.526 adopted on 1 July 2022 in order to bring it into line with its European neighbours.
What is the droit de suite or resale right? "Resale right" is the remuneration of the author of an original work when it is sold with the help of an art market professional (auction houses, galleries, framers, etc.).
This right is inalienable although, when the author of the work is deceased, this resale right is transmitted to his legal heirs, and for a maximum legal period after his death.
Thus, several points have been clarified or modified:
Definition of the works of art concerned: works of art involving reproductions and original manuscripts of writers and composers will now be covered by the resale right in Monaco.
Details of the sale: all sales involving an art market professional (as buyer, seller or intermediary), and not only in the context of an auction, are covered by the droit de suite in Monaco. Finally, the droit de suite does not apply to the first transfer of the work.
Payment: The bill reaffirms the principle that it is the responsibility of the professional to make payment to the author or rightful claimants, although this droit de suite is the responsibility of the seller.
The buyer or professional seller who does not pay the droit de suite may be ordered to pay damages to the beneficiaries of the droit de suite.
Calculation of the droit de suite: Whereas the amount of the droit de suite was set at 3% of the sale price, the bill now limits it to €12,000 and sets it as follows:
o 3% for the first €50,000 of the sale price;
o 2% for the portion of the sale price between €50,000.1 and €200,000;
o 0.5% for the portion of the sale price between €200,000.1 and €350,000;
o 0.25% for the portion of the sale price between EUR 350,000.1 and EUR 500,000;
o 0.15% for the portion of the sale price exceeding 500,000 euros.
Application of droit de suite: the latest changes
o increase the period of application of the droit de suite to 70 years after the death of the author (previously 50 years)
o the author allowed to dispose of droit de suite in their will (under certain conditions, in particular that it does not affect the reserved portion of the descendants). In the absence of an heir or a will, the droit de suite then reverts to the universal legatee or the holder of the moral right.
Scope of application: Droit de suite is open to non-Monegasque authors
o whose country's legislation admits the Monegasque droit de suite, or
o who have established their domicile and participated in the life of art in Monaco for at least 5 years.
For more information on droit de suite in Monaco, please contact your local office or Rosemont Monaco: office@rosemont-mc.com
Rosemont International offers 360° art advisory services. For more, information, please visit our Rosemont Art Advisory services page.
Credit Pictures: Monaco art3f