Freeports are tax-free storage facilities that wealthy people use to store their investments in art, wine, and artifacts. The Geneva Freeport stores more artworks (both in quantity and value) than the Museum of Modern Art (MoMA) in New York. In 2013, the freeport contained about 1.2 million artworks. In addition to paintings and gold bars, it stores about three million bottles of wine. Freeports are closed to the general public and have been repeatedly used to store stolen paintings and cultural valuables.
They are not exactly free, or rather, not free at all. The only “free” thing you get is the right to store, buy, and sell anything within a certain territory without paying taxes… the goods, while within its territory, are considered “in transit,” that’s all. But this only lasts until you export the goods from there. At that point, you will have to pay taxes to the treasury of the country into which you are importing the item or money.
I learned about such a model from a recent video by Varlamov-Chichvarkin about wines, googled it, and it turns out that while wine is a minor thing, it’s much more significant with art.
Hi, I'm Rauf Aliev. 