Do you want to invest in a reliable support to prepare your transmission or diversify your assets? But faced with an abundance of choices that meet these criteria, you don’t know which investment to choose? You know classic products by heart and it’s time for you to find something more original but at the same time effective. Why not invest in a forest land group?
At a time when the protection and promotion of the environment are among the trends, it has never been so appropriate to invest one’s funds in the exploitation of the wood and forest industries. The return is certainly less generous but taking advantage of a triple advantageous tax system, investors can draw a good part of it to optimize their income over the long term and better prepare their succession.
Buying a plot of forest is not an option given to everyone. At 6,300 euros today the price of a hectare of forest, it is unlikely to have direct access to this type of asset provided you have a colossal budget. The associated legal frameworks are all the more complex. Calling on a forest land group therefore remains the most suitable solution for investing with ease.
By making this choice, you will have access to a sizeable forest heritage with a moderate entry ticket and without the constraints of direct possession. The selection, improvement, equipment, conservation and management of the forest massifs are entirely orchestrated by professionals in the field. As soon as you subscribe to shares in a forest land group , you become a member of the group. In return, the latter pays you income from operating products (sale of timber cuts, hunting and fishing rents).
The return generated by such an investment generally varies between 1 to 3%. This rate depends on the quality of the woods, their species and their location, but almost never exceeds this range. On the other hand, the tax advantages are very appreciable. In addition to income tax relief (18% of the cost price), the taxpayer can benefit from relief and exemption from wealth tax (up to 50% of the acquisition price) and a tax exemption for donations and inheritances (75% reduction).
Since the value of the shares is very scalable over time, the capital is never guaranteed by investing in a forest land group. The capital loss is all the greater if a natural disaster were to strike all or part of the assets.
Finally, there is no doubt that this type of investment entitles you to a significant tax reduction, but subject to meeting certain conditions (cap, holding period).