This right entitles the creator of an original work of art to receive a small percentage of the sale price when his/her work is resold. The legislation was introduced in the Dutch Copyright Act on 1 January, 2006.
What are the terms and conditions?
The resale of an artwork must satisfy a number of criteria to qualify for resale royalties.
* Resale right only applies when an artwork is resold and thus have no bearing on the first sale
* It applies to an original artwork or a work that is created by the artist him/herself or under his/her supervision in a limited edition, for example graphic work
* An art market professional must be involved in the sale as either buyer, seller of intermediary. This professional is responsible for payment of the resale royalty
* The resale price must be at least € 3.000
* If the work is resold within three years following its original purchase from the artist, a resale right royalty is payable if the sale price exceeds € 10,000
* The artist must be an EU national, or a national of Iceland, Liechtenstein or Norway, or must be a permanent resident of the Netherlands.
As of 1 January, 2012, resale royalty is also payable upon the sale of artwork by deceased artists. As with copyright, a resale royalty is payable for a period of 70 years following the death of the artist.
How much is due?
The amount of resale royalties due ranges from 0,25% to 4% of the resale price:
Resale price (excl. VAT)
|
% of royalties
|
€ 3,000 to € 50,000
|
4
|
€ 50,000.01 to € 200,000
|
3
|
€ 200,000.01 to € 350,000
|
1
|
€ 350,000.01 to € 500,000
|
0.5
|
€ 500,000.01 and over
|
0.25
|
The maximum sum due in resale royalties is € 12,500.