Instead of operating in the luxury tax haven of Luxembourg, they would open their storage facility in a place not known for its low taxes: New York City.
A view inside the Arcis art storage facility in Harlem, New York. Photo by Zoe Wetherall for Artsy.
Guests at Arcis must have their retinas scanned to go through the first door, then present their bare forearms for a vascular scan at a second door.
A client viewing room at the Arcis art storage facility in Harlem, New York. Photo by Zoe Wetherall for Artsy.
Nearly 80 percent of all artwork is in storage, and since new art is made every day, demand for storage facilities—at least in theory—will grow continuously.
“I spent hours researching it,” Kleinman says, “and I concluded that Arcis is a tax-free zone in search of a tax.”
Detail of the Arcis art storage facility exterior. Photo by Zoe Wetherall for Artsy.
Cayre applied for and received $13 million in tax breaks on construction by promising the warehouse would bring six full-time and 10 part-time jobs to East Harlem.
Interior view of the Arcis art storage warehouse in Harlem, New York. Photo by Zoe Wetherall for Artsy.
“They may be onto something just by confusing people.”