Wine Industry Property Groupings
Tax optimisation for wealth tax (ISF) and inheritance
Management delegated to a professional
GFV: A tripartite relationship
Select independent vineyards within great wine-making regions, on well-known terroirs.
Give preference to tenant operators, experts in their trade, developing a true distribution strategy
An investor Wine Industry Property Grouping (GFV) is a non-operating agricultural property grouping which is invested in wine-growing.
It brings together 3 actors over the long term: Investors, Wine-growers, Manager.
A limited number of investors (maximum 149) subscribing to the capital of a non-trading company.
The sole purpose of the grouping is to invest in wine-making assets and to let them to a winegrower under a long lease.
All direct entitlements are prohibited.
The winegrower is the farmer who works the land. The company enters into a long lease with the winegrower to develop the holding in a sustainable manner.
Winegrowers must be chosen for their technical and commercial know-how.
Collection of the rent gives rise to the distribution of income to the shareholders in cash or sometimes, by option, in bottles (conversion in kind).
Management of the company and the real estate assets is fully delegated to the manager, in return for annual management fees.
The manager is appointed in the By-Laws and deals with everything.
The shareholders are kept regularly informed of the life of their grouping and developments in their assets. They take part in all collective decisions at General Meetings, notably for the appropriation of results.
Tax treatment of GFVs
Reduction of the taxable basis for any transfer without consideration (Articles 793 and 793 bis of the General Tax Code)
Value of shares exempt in the amounts of:
Conditions : holding for 2 years and conservation by the beneficiary for 5 years
Donations (concluded before a notary) dating for more than 10 years will no longer have to be added back for inheritance purposes and will no longer be taken into account in assessing tax exemptions.
Reduction in the taxable basis (Article 885 H of the General Tax Code)
Value of shares exempt in the amounts of
Effective date of the exemption: : after 2 years of holding
Micro-regime for small real estate holdings
Standard tax regime
Welfare contributions: 15.5%
Taxed at 19% + welfare contributions (15.5%) + specific tax if capital gains > €50k
Real estate capital gains: Deduction for length of the holding period
Total exemption after 22 years
Welfare contributions: Deduction for length of the holding period
Total exemption after 30 years
9% /year over and above 22 years.
A long term investment, with no guarantee for the capital, with reduced liquidity
Risk of capital loss
Risks associated with partners’ unlimited liability
Risks associated with the winegrowing property market
Risk of asset concentration
Natural and sanitary risks