Buying shares in a Groupement Foncier Forestier (GFF) is a very attractive way of investing in forests. It allows you to reduce the purchase price, lower the level of risk, benefit from tax advantages and simplify management. Buying woodland for investment purposes can represent a very substantial investment, depending on the area of woodland to be acquired. Buying shares in a Groupement Foncier Forestier, on the other hand, enables you to make this investment from just a few thousand euros, making it accessible to as many people as possible. Buying shares in a GFF also reduces the risk. In most cases, the group will own several different forests. The capital risk, through the variety of the GFF's forestry investments, will reduce the risk of a loss in the value of the forest property. There is also a risk in terms of forest management: forestry work, income from hunting, etc. .... Pooling investments will smooth out the Group's income.
If you acquire shares in a Groupement Foncier Forestier, you can claim a tax reduction (18% of the subscription or purchase price of the shares, up to a limit of €5,700 for a single person or €11,400 for a couple, giving a tax reduction of €1,026 for a single person and €2,052 for a couple). Subject to certain conditions (implementation of a Sustainable Management Plan, etc.), you can also benefit from a 75% allowance on the taxable value of the forest or shares in a Groupement Forestier for property wealth tax, inheritance tax or gift tax. Managing a forest involves managing forestry work, hunting, etc. and managing all the tax-related aspects, which is a difficult exercise for a novice. By setting up a GFF, the partners can entrust these tasks to the manager (who can delegate them to a professional if they wish). You can find shares in Groupements Fonciers Agricoles for sale throughout France at www.ma-propriete-forestiere.fr.
