Investing in Art, Fine Wines and Luxury Assets: Legal and Tax Challenges in Managing Alternative Wealth

In a global context of increasing portfolio diversification and growing interest in tangible assets, investments in art, rare wines, classic cars, and other luxury goods are becoming increasingly relevant within private wealth portfolios. However, this asset class requires a specialised legal and tax approach.

1. Legal Ownership Structuring

Holding luxury assets in one's personal name is often not the most efficient solution. Creating holding companies, private foundations, or trusts may provide:

• Protection against creditors and succession risks.

• International tax planning opportunities.

• Greater discretion over asset ownership.

2. Circulation and Export Rules

The export and circulation of artwork and cultural assets within and outside the European Union are subject to strict regulations, including:

• Administrative licensing.

• Appraisals by recognised experts.

• Declarations to customs and cultural authorities.

Non-compliance may result in serious penalties, including seizure or significant fines.

3. Applicable Taxation

The transfer of luxury assets (via donation, inheritance, or sale) can trigger significant tax consequences, such as:

• Stamp Duty in Portugal.

• Capital gains tax.

• Reporting and declaration obligations.

Accurate asset valuation is key to avoiding underreporting and fiscal penalties.

4. The Importance of Integrated Advisory

Effective management of this type of wealth requires a multidisciplinary team, including:

• Lawyers specialised in international taxation and wealth management.

• Art consultants and certified appraisers.

• Notaries and fiduciary service providers.

At Leal Figueiredo & Associados, we support our clients through all stages of structuring, transferring, and protecting alternative assets, ensuring legal security and tax efficiency.