How to Have, Hold and Protect My Art Collection?
The Dutch Art Fund Foundation
For centuries, Dutch families have owned and protected collections of Dutch Masters. Many have done so successfully, safely, and with long-term continuity through a special legal vehicle under Dutch law: the foundation (stichting).
Such an Art Fund Foundation can be created not only by Dutch families but also by collectors and investors worldwide. It allows them to own and preserve their art collections through “their” own foundation, much in the same way as important Dutch collections such as those of Van Gogh and Rembrandt have been safeguarded for the future.
What Is an Art Fund Foundation?
An Art Fund Foundation is a legal entity that holds, manages, and protects one or several artworks or entire collections. It has no shareholders or owners, but rather a board that acts within the limits of a charter and internal regulations defining its objectives and governance.
This structure makes it possible to protect art against:
- personal risks of the founder or heirs
- tax exposure on transfer or inheritance
- claims from creditors, former spouses or business partners
- internal family disputes
The foundation separates the art from private wealth, while the founder (or family) can still exert influence through a supervisory board or family charter.
Legal Structure and Governance
The Dutch foundation is particularly suitable because it:
- Has no shareholders, and therefore no direct ownership claims
- Offers flexible governance, with a board, supervisory council, and optional family constitution
- Is widely recognised internationally and easy to establish before a Dutch notary
- Operates with limited disclosure requirements, ensuring discretion
- Provides strong asset protection against personal or external risks
The board’s fiduciary duty is to act in the best interest of the foundation and its objects. Personal interests of family members or donors must remain subordinate to that purpose, the preservation, care and long-term enjoyment of the art.
Tax Considerations
A Dutch foundation is generally not subject to corporate income tax as long as it does not pursue profit. However, several tax points may arise when art is contributed:
- Gift or inheritance tax upon transfer to the foundation
- Income-tax implications if the art originates from a business or investment
- VAT aspects for international loans, exhibitions, or transactions
When the foundation qualifies as a public benefit organisation (ANBI), it enjoys significant exemptions from Dutch gift and inheritance tax, a key advantage for collectors with cultural or philanthropic intentions.
Management and Funding
Art requires more than legal ownership: it requires continuous care. Therefore, the foundation can:
- enter contracts for insurance, storage, restoration and exhibition
- set up an art fund to generate income for conservation costs
- lend parts of the collection to museums or cultural institutions
Boards often combine family members, art experts, lawyers, or bankers, striking a balance between continuity, independence, and professional oversight.
Succession and Longevity
A foundation can live on indefinitely, even when the founder or board members change. This ensures that the collection remains intact across generations and prevents fragmentation or forced sales.
Through a family charter, the founder can record long-term principles about use, loans, exhibitions, and the conditions for any sale. In this way, both the financial and emotional value of the collection are preserved.
To Conlude
A Dutch Art Fund Foundation offers a solid, internationally recognised structure to have, hold, and protect art, for today and for generations to come. It combines discretion with legal certainty, flexibility with permanence, and family involvement with professional care.
Whether the goal is private ownership, cultural preservation, or long-term philanthropy, the Dutch foundation remains one of the most elegant and secure ways to ensure that art is not merely possessed, but continues to live.