Groupement Foncier Viticole [Vineyard Group]
Wealth tax optimisation and transfer
Vineyard operation by a wine-maker
GFV: A TRIPARTITE RELATIONSHIP
Select independent wine estates located in large wine-growing regions, located on renowned terroirs.
Favour tenants, who are experts in their business, developing a genuine production and distribution strategy.
A GFV investor is a non-operating agricultural land group involved in wine making.
It connects 3 players over the long term: Investors, Wine-maker, Manager.
A limited number of investors (149 max) subscribe to the capital of a civil company.
The sole purpose of the group is to invest in vineyard assets and lease them under a long-term lease to a wine-maker.
Any direct claim is prohibited.
The wine-maker 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.
Wine-makers 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 in the taxable base for any free transfer (793 and 793 bis of the CGI [French General Tax Code])
Value of the exempt shares:
Conditions : held for more than 2 years and retained by the beneficiary for 5 years
Donations (made before a notary) prior to 10 years will no longer have to be reported to the estate and will not be taken into account for the assessment of the exemption.
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 capital guarantee, with reduced liquidity
Risk of capital loss
Risks associated with partner liability
Risks associated with the wine-growing land market
Asset concentration risks
Natural and health risks