Investors have disappeared from auctions in the past few years, because investing in objects d’arts makes smaller returns than in the late ’90s. Experts estimate the total turnover of Hungary’s art market at HUF 5 billion–HUF 6 billion. Prices of local paintings have grown 20%–30% a year on the average in the past 25 years, as against 11% worldwide as calculated in the Mei/Moses Fine Arts Index.

Hungarian auction houses charge both the artist and the buyer a 10%–15% commission to cover the costs of the auction and the catalogue. Furthermore, taxes also decrease profits; auction houses pay a 20% (raised to 25% from next year) personal income tax on movables with a value of above HUF 200,000. At the same time, buyers are charged a 5% royalty on each object d’arts.

According to a recent tax amendment, lobbied by leading Hungarian art patron Gábor Kovács of Kogart foundation, private entrepreneurs will be allowed to deduct the purchase price of contemporary objects d’arts from their taxes as amortization in at least five years. “This privilege should be extended on all private individuals,” said Attila Zsigmond, director of Budapest Gallery.