The resale right is presently defined as follows:
The author of an original work, whether handwritten, graphic or plastic, or his successors in title, shall benefit, notwithstanding the transfer of the original work, from a resale right, which is an inalienable right to a share in the proceeds of any sale of a work after the first transfer thereof by the author or his successors in title, where an art market professional acts as seller, buyer or intermediary.
Sovereign Order no. 10.300 of 22 December 2023 now sets out the terms and conditions for the application of Law 1.526:
- Resale right is payable on the sale in Monaco of an original, handwritten, graphic or plastic work other than the first transfer by the author or his successors in title, provided that an art market professional acts as seller, buyer or intermediary in this transfer as part of his professional activity and that this sale is subject to VAT.
- The sale price of each work taken into consideration for the collection of “droit de suite” is, excluding tax, the auction price in the case of a sale by public auction and the transfer price received by the seller in the case of other sales.
- Resale right is not due if the sale price of the work is less than 750 euros. Resale right is also not due when the seller has acquired the work directly from the author less than three years before the sale, and if the sale price of the work is less than 10,000 euros.
- A legal entity may collect “droit de suite” under certain conditions, in particular upon authorisation of the Minister of State. Authorisation to collect “droit de suite”, and any decision to withdraw such authorisation, are published in the Journal de Monaco. Authorisation may only be granted to bodies engaging in the collective management of intellectual-property rights which have their registered office in Monaco and are managed by a person of Monegasque nationality. Where the collective management body has its registered office outside Monaco, the said authorisation may only be issued if the collective management body is represented in Monaco by a natural person of Monegasque nationality whose domicile is in Monaco, or by a legal entity whose registered office is in Monaco and whose management is ensured by a person of Monegasque nationality. In the latter, the natural person of Monegasque nationality must provide evidence of good character and appropriate professional qualifications in the graphic or plastic arts sector or in the management of professional bodies.
For more information, please contact consulting@rosemont.mc