Art Basel and Beyond: Paris’ Evolution Into a Global Art Powerhouse

Diana Wierbicki, chair of Loeb & Loeb’s Art & Cultural Property practice, discusses Paris’ growing role in the international art market and the factors driving its renewed prominence.  She examines the shift from London to Paris following Brexit, the influence of Art Basel’s expansion, and the key legal and regulatory considerations that galleries, collectors and artists should know when engaging in cross-border art transactions in France.

Tell us about your practice and the types of art and cultural property matters you typically handle.

My practice focuses on art law and cultural property, handling a broad range of domestic and international matters involving fine art and collectible assets.  I advise high net worth individuals, families, family offices, art businesses and institutions on the legal, tax and transactional aspects of art ownership and transfers.  My work spans private and auction sales, collection management, estate and tax planning and charitable giving.

Paris has long been a cultural capital, but what factors have recently positioned it as a focal point in the global art market, especially with Art Basel’s recent expansion into the city?

Paris has a rich history of art and cultural movements—Impressionism in the 19th century, Surrealism in the 20th century—and is home to grand museums and iconic galleries that are renowned worldwide.  It has a distinguished history in art and cultural heritage, and practically, it is easily accessible for both Europeans and the international art world.  There is robust national and international support for the arts in Paris, and the cultural cachet of Paris makes it appealing to international art world actors as a place to spend time while engaging with the art market.

There has certainly been a surge propelling the city toward the forefront of the global art market, as seen in the influx of international art galleries in recent years to Paris: such as David Zwirner in 2019, White Cube in 2020, Gagosian in 2021 and Hauser & Wirth in 2023.  Sotheby’s and Christie’s have expanded operations in Paris over the past few years, making the city a primary market for high-profile auction house sales.  When Art Basel expanded into Paris in 2022, the fair joined Art Paris and other specialized art events already held in the city.

The strong momentum in transitioning the art world toward Paris is fueled by the Brexit vote that occurred in 2016.  The U.K.’s departure from the EU in 2020 introduced considerable challenges for the art market in London.  Since then, London has proved to be more expensive, logistically complicated and overall more difficult for art dealers and collectors to transport works, produce shows and transact business within the global art market.  As a result, there has been a strategic shift in art market dominance away from London toward the continent.

How has Art Basel’s presence in Paris impacted the local art ecosystem, particularly for galleries, collectors and emerging artists?

Art Basel’s arrival in Paris marks a significant moment for the city’s vibrant arts scene, invigorating opportunities and visibility across the community.  “Paris Art Week” has been coined as a catch-all term to describe the various art events that now take place in Paris during October, including Art Basel, Paris Internationale and Asia Now.  Parisian galleries, from blue-chip to smaller spaces, benefit year-round from the influx of international visitors and media attention focused on the city during this time.

For collectors, Art Basel offers ample opportunities for socializing and networking, whether through previews, openings, dinners or other art-focused events.  For emerging artists, Art Basel has an entire section dedicated to emerging galleries, and local galleries provide opportunities for emerging artists to gain international exposure thanks to the high volume of art professionals spending time in Paris.  Art Basel helps strengthen Paris’ role as a center for cultural and creative exchanges.

From your perspective, what legal or regulatory considerations come into play for participants in Art Basel?

Participants in Art Basel, including galleries, collectors, artists and service providers, must navigate several legal and regulatory considerations, many of which are specific to France.

International galleries must follow stringent import laws to bring artwork into France for the fair and ensure that temporary admission is handled properly.  Value-added tax (VAT) rules in France can be complex, and if sales take place during the fair, galleries must understand when and by whom VAT is owed, as it may vary depending on the buyer’s status and location.  In addition, French law provides artists’ resale rights (droit de suite), which grant artists and their heirs a percentage of the resale prices of works.  France also enforces stringent anti-money laundering regulations, with a growing emphasis on customer due diligence and transaction transparency, in addition to the cap that France places on cash payments.

These requirements are in addition to the general logistical considerations of participating in art fairs, such as obtaining appropriate insurance, ensuring proper packaging and managing the transportation of artwork.  To ensure compliance, it is recommend that Art Basel participants work with specialized legal and logistics professionals familiar with the French art market.

How does the French legal framework compare to that of other Art Basel host cities, such as Miami or Hong Kong, when it comes to supporting or challenging the international art trade?

Each city abides by its own set of rules and regulations affecting the international art market.  Gallerists may choose which artwork to display at a fair based on the host city’s legal and administrative framework for importation and sale.  However, even if one city is more flexible regarding international transactions, another city might offer more access to certain collectors.

At a high level, each of the Art Basel host cities has different import and export requirements, as well as different tax requirements, which galleries and potential purchasers typically weigh in order to determine in which fairs to participate.

Looking ahead, what long-term implications do you foresee for Paris as a global art hub—in terms of both market influence and cultural heritage policy?

Paris has strong momentum to further solidify its influence as a center of the global art market.  Since Brexit, Paris has captured more European and international art business, shifting the balance of power within the European art world from London to Paris and reinforcing Paris’ status as an important location for galleries, auction houses and art world events.  This influx of participants into the Paris art world has invigorated established local institutions, encouraged international galleries and auction houses to increase their presence in the city, and provided opportunities for new and emerging galleries and artists to also establish themselves in the Parisian art scene.

As global dynamics continue to evolve, Paris’ revitalized role as a leading hub for the art market appears both significant and enduring.