Want to get off the beaten track and give your investments an original touch? Investing in a vineyard is a way of diversifying your assets, combining profitability, lower taxation and epicurean pleasure. A true pleasure investment.
Lay the foundations for your investment
To begin with, you need to know where and how to buy vineyard shares. The easiest way is to turn to a groupement foncier viticole (GVF). This is a non-trading company whose purpose is to acquire and then lease vineyards to professional winegrowers under a long-term rural lease.
When you invest, you become a partner and receive dividends based on the number of shares held.
The vineyards in a GFV are often of the highest quality, and are selected according to a number of criteria, including location, reputation, appellation, property classification and development plans.They are selected according to a number of criteria, such as location, reputation, notoriety of the appellation, classification of the property, development plans, etc. Choosing renowned vineyards may be more expensive at the outset, but in the end, they will guarantee you a minimum of profitability. What's more, if one day you plan to sell your shares, the more prestigious the appellation, the shorter the time it will take to find a buyer. An investment in vineyards is the assurance of a long-term, secure, transparent, efficient and tax-efficient investment.
A passion for wine without the hassle
Operating a vineyard is governed by production and marketing rules that must be mastered to ensure profitability. Owning a vineyard is like running a business. It's essential to be well advised and guided in your choices. The advantage of this type of investment lies in the fact that it is the GFV operator who bears the risks involved in producing and marketing the estate's wines. Regardless of the weather, and even if disease attacks the vines, you'll receive the rent in the same way. By investing in a GFV, you become an owner without worrying about management. You only see the good side of things.
Reap the rewards of your investment
Buying shares in a GFV also means participating in the economic development of a region, a piece of farmland or a quality vineyard. You can be sure that your investment will improve over time (like a fine wine). In return for your purchase of shares, you will of course receive an annual dividend in proportion to the number of shares held (the average yield can be around 3% of the subscribed capital, or even more). But that's not all. For wine lovers, one of the little extras of the GFV is that you can also receive dividends "in kind". In other words, depending on the year's results, you can also expect to receive dividends "in kind", i.e. bottles of wine from the estate, or to buy some at a "preferential rate". Please note, however, that the capital invested in GFV shares is not guaranteed.
This type of investment can also be very attractive from a tax point of view. Income from GFV units is taxed as income from property, and as such is subject to the general tax system. However, if the taxpayer's total gross property income does not exceed 15,000 euros per year, the investor can take advantage of the micro-foncier system. A flat-rate allowance of 30% is applied to your rental income.
If you are subject to the IFI(Impôt sur la fortune immobiliè;re), you can benefit from a 75% exemption on the value of GFV units up to a limit of 101,897 euros, and 50% above that. This exemption applies to shares held for more than two years.
The pleasure of tasting your own wine
Small "personal satisfaction": by investing in a GFV, you choose the terroir, the grape variety and the vintage. The bottles you receive (sometimes with prestigious appellations) will be a welcome addition to your cellar.
Generous tax advantages
The tax authorities prefer this type of investment, and avoid penalizing it fiscally. That's why holders of GFV units benefit from a favorable tax regime, particularly in the event of a transfer. Any free transfer (inheritance or gift) is tax-exempt up to 75% of the amount passed on, up to a limit of 101,897 euros per beneficiary, and up to half that amount above that threshold.
This exemption is subject to conditions: the shares must have been held for more than 2 years, and the property must remain the property of the beneficiary of the gratuitous transfer for 5 years from the date of transfer.
In the event of sale, any capital gains realized on resale will be taxed as capital gains on real estate. The taxable capital gain is reduced by an allowance based on :
- 2% per year from the 6th to the 17th year of ownership
- 4% per year from the 18th to the 24th year of ownership
- 8% per year from the 25th year of ownership.
Marie-Christine Ménoire