Unicorn Private Research
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The costs of owning art: buyer's premium, seller's commission, VAT, insurance and storage

How much does it cost to buy a painting at auction? More than the hammer price. Since February 2026 at Sotheby's and since 1 September 2026 at Christie's, the buyer pays a premium of 28% on the hammer price up to $2 million, 22% from $2 million to $8 million and 15% above. On a $5 million hammer that adds $1.22 million. Then come taxes, shipping, insurance and storage every year, and a seller's commission when you sell.

Key takeaways

The buyer's premium, house by house

Sotheby's raised its rates in February 2026: 28% of the hammer price up to $2 million (£1.5 million), 22% from $2 million to $8 million (£1.5 million to £6 million) and 15% above that. Before, the 28% tier had been 27% and stopped at $1 million (Grossman LLP, 14 May 2026).

Christie's moved to the same structure on 1 September 2026, for every department except wine, after a year at 27% up to $1.5 million (ARTnews via USA Art News, 3 September 2026). Phillips charges 29% up to $2 million, 22% up to $8 million and 15% above; its Priority Bidding scheme, launched in 2025, takes 1 to 4 points off for bidders who leave a binding written bid at or above the low estimate 48 hours before a live sale.

Bonhams changed on 1 October 2026: 30% on the first $35,000 (£25,000), 28% up to $750,000, 25% up to $1.5 million, 21% up to $7.5 million and 14% above.

The tiers are marginal, like income tax. Take a $5 million hammer at Christie's or Sotheby's: 28% on the first $2 million is $560,000, 22% on the next $3 million is $660,000. The buyer pays $6.22 million before tax, an effective premium of 24.4%. On a $1 million hammer it is a flat $280,000.

Schedules change every year or two, and vary by city and department. The binding figure is the one printed in the conditions of sale for the auction you bid in.

What the seller pays

The seller's commission is negotiated. Houses publish standard rates for smaller consignments, but for an important painting the commission can fall to zero, and the most coveted lots get part of the buyer's premium handed back to the seller. Add charges for photography, insurance while the work is with the house, and catalogue promotion, all set out in the consignment agreement.

In the UK and the EU there is also the artist's resale right. In the UK, for sales from 1 April 2024, it is 4% of the price up to £50,000, 3% up to £200,000, 1% up to £350,000, 0.5% up to £500,000 and 0.25% above, capped at £12,500 per work, for sales of £1,000 or more (GOV.UK). It applies to living artists and to estates for a period after death, so a Warhol sold in London pays it and a Monet does not. The US has no federal equivalent.

VAT, import duties and sales tax

Moving art across borders triggers tax, and the rates are lower than for ordinary goods. The UK taxes imported works of art on a reduced value, giving an effective VAT rate of 5% (HMRC Imports manual, updated 21 October 2026). France has applied a 5.5% rate to imports and to sales of works of art since 1 January 2025, outside the margin scheme (BOFiP). Italy cut VAT on works of art, including imports, to 5% from 1 July 2025, down from 22% for dealers.

In the UK and EU the auction house may also add VAT to the buyer's premium, depending on where the lot is and where it goes. In the US there is no VAT, but a state sales or use tax can apply depending on where the work is delivered.

Works kept in a bonded or customs warehouse can stay there with import tax suspended until they enter a country. Collectors who buy in New York and store in Geneva or Singapore do this routinely. It defers the tax; it does not cancel it.

Insurance, storage, appraisals, transport

These are the costs of holding. A fine art policy covers damage, theft and loss in transit, priced on the insured value, the location and the security of the building, and needs an up-to-date valuation. Specialist storage means climate control, security and fire protection, priced by space and by value. Appraisals for insurance and accounts are repeated every few years, because the insured value drifts with the market.

Transport is the risky moment. A major painting travels in a custom crate, with a courier, by fine art shipper; at auction the house organises it, privately you pay for it.

For Unicorn Art Club we estimate custody, insurance and appraisals together at 0.5% to 1.5% a year of the work's value. That is our estimate for planning, not a market statistic.

Adding it up

Buy at $5 million hammer, sell at the same hammer five years later, and you are well behind: about 24% paid on the way in, a seller's commission on the way out, and five years of holding costs. A painting has to rise substantially before its owner breaks even. That is why the holding period for blue-chip art is counted in years.

In Unicorn Art Club these costs are paid by each artist's vehicle at actual cost, with no mark-up, and Unicorn Private takes 20% of the gain on sale with no annual fee. To check what works by an artist have fetched with premium included, Unicorn Art Watch lists recent results, for example artwatch.unicorn-club.com/artists/gustav-klimt.

Risk

Investing involves the risk of losing capital.

Frequently asked questions

Is the buyer's premium included in published auction prices?

Usually yes. Christie's, Sotheby's and Phillips publish prices with the buyer's premium included, but before taxes. The hammer price is lower.

Can the buyer's premium be negotiated?

Rarely in a public sale. Phillips' Priority Bidding is a published discount for early binding bids. Large buyers sometimes obtain terms privately, which are not disclosed.

Who pays the artist's resale right?

Under UK rules the seller is liable, together with the art market professional involved in the sale; in practice auction houses often pass the charge to the buyer and show it in the conditions of sale. Check the lot notes.

How much does it cost to insure a painting?

It depends on value, location, security and transit. Ask a specialist insurer for a quote based on a recent appraisal. Unicorn Art Club estimates custody, insurance and appraisals together at 0.5% to 1.5% of value per year.

Related guide

Sources

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