In a world shaken by geopolitical uncertainty, ballooning tariffs, and tightening regulations, freeports and Free Trade Zones (“FTZ”) are becoming the new strongholds of the anxious collector.
Once niche solutions, these tax-friendly storage hubs—like Geneva Freeport, Zurich, Luxembourg, Singapore and even Delaware—have emerged as lifelines for collectors navigating an increasingly unpredictable art market. At their core, FTZs promise something rare: stability.
Putting valuable items in a secure and stable place like Switzerland, offers a kind of safety that’s hard to find everywhere today. Since the onset of the war in Ukraine, collectors, galleries, auction houses and their respective intermediaries have watched interest surge, citing a cascade of global crises, from geopolitical unrest to economic volatility, that have triggered a sharp uptick those looking to relocate their holdings. Trump’s recently announced “Liberation Day” tariffs, only add to the mix!
The appeal of FTZs isn’t just psychological. It’s financial. The are a rising number of collectors and others avoiding U.S. import duties by parking goods in FTZs. Items subject to new or increased tariffs are being rerouted to FTZs, as collectors look to hedge their exposure.
But there’s more than tax strategy at play. For collectors eyeing Europe, a new EU regulation (2019/880) requires full export provenance for cultural goods entering the bloc. This has proved problematic for many generational collections, with some collectors actively exploring alternative jurisdictions for storage, including Geneva, Luxembourg, and Singapore.
The climate factor adds another layer. Following the Los Angeles wildfires in January, high-net-worth clients are increasingly seeking storage in fire-safe, climate-controlled facilities.
Additionally, in an American context, moving artwork across state lines within the U.S. can trigger additional tax liabilities, unless you are in one of just five states that don’t levy such taxes. Again, FTZs offer a workaround—but only with the proper selection of jurisdiction.
Behind the scenes, issues of transparency, confidentiality, and jurisdictional risk are at play. The result of numerous recent legislative changes regarding ownership disclosure and transparency, have resulted in a tangle of unintended consequences that is reshaping the way art is collected, stored, and traded.
The collector of 2025 is not just buying a painting or picture. They are making a geopolitical bet. And increasingly, that bet is hedged inside an FTZ.
Next Steps
If you have any questions regarding Freeports or Free Trade Zones for your fine art or other collectable or luxury goods, please contact us at 604-688-4900 or by email at paul@barbeau.co.