Rules, Opportunities and Background

Art as an investment – with a tax advantage

In Denmark, there is a special and relatively little-known tax opportunity that allows businesses to depreciate the purchase of original works of art, provided the artwork is used in a professional or commercial context.

This scheme enables companies to enhance their physical working environment with art while at the same time benefiting from a favourable tax treatment.

The current rules – in brief

According to the Danish Depreciation Act (Afskrivningsloven) § 44 A and § 44 B, the main principles are:

• Original artwork may be immediately depreciated up to an annual threshold (DKK 36,000 in 2026).

• For artwork exceeding this threshold, companies may apply annual depreciation of up to 25% of the remaining value.

• The artwork must be displayed in the company’s premises and have a business-related purpose (e.g. offices, meeting rooms, reception areas).

This framework is unusual, as it allows depreciation of an asset that is not necessarily subject to wear and tear.

An exceptional rule – and potentially temporary

Under normal tax principles, assets that may appreciate in value are not depreciable. Art clearly falls into this category, which makes this scheme both politically and fiscally exceptional.

For this reason, it is widely considered that the current depreciation option may be temporary and could be amended or withdrawn by future legislation. There is no guarantee that the rules will remain unchanged over time.

Background of the scheme

The depreciation option for art was introduced as part of a broader political initiative to:

• support Danish art and culture

• strengthen the market for living artists

• encourage the presence of art within the business community

The framework was established during Brian Mikkelsen’s tenure as Minister for Economic and Business Affairs, where the ambition was to connect culture, business development and economic growth.

Important note – seek professional advice

Tax treatment always depends on the specific circumstances of each company. We therefore strongly recommend consulting your accountant or tax advisor before purchasing art with the intention of depreciation.

Stubberup Gallery is happy to advise on art selection, documentation and placement, but does not provide tax or legal advice.

Legal reference

The Danish Depreciation Act, § 44 A and § 44 B