In short…
A Forestry Land Group (GFF — Groupement Foncier Forestier) lets you invest in sustainably managed forests while stacking three rare advantages in a single asset: an 18% income-tax reduction on subscription (cap €50,000 / €100,000), a wealth-tax (IFI) exemption of 75% of the units’ value, and a 75% allowance on transmission duties (the Monichon regime). The running yield is modest (1 to 2%), liquidity is limited and the horizon long: it is above all a formidable tool for transmission and for easing wealth tax.
- 18% income-tax reduction of the subscription (cap €50,000 / €100,000)
- Eased wealth tax: units 75% exempt of their value
- Transmission: 75% allowance on the duties (Monichon regime)
Simulate your GFF reduction
The simulator works out the income-tax reduction; the wealth-tax and transmission advantages are added on top. Your data is neither stored nor transmitted.
Forestry Land Group (GFF) simulator
Invest in forestry: income-tax reduction, partial wealth-tax exemption and a transmission allowance.
Results are provided for purely illustrative and educational purposes, based on the parameters you enter and simplified assumptions (2026 taxation, constant return, excluding inflation). They constitute neither personalised investment advice, nor tax advice, nor an offer to subscribe. Some investments carry a risk of capital loss. Before any decision, speak with an advisor.
Why the GFF is wealthy estates’ favourite transmission tool
The GFF is one of the very few investments to stack three distinct fiscal levers on a single asset. On entry, an 18% income-tax reduction of the subscription. During the holding, a wealth-tax (IFI) exemption on 75% of the units’ value, the forestry asset being treated as professional to that extent. And above all, on transmission, the Monichon 75% allowance on the base of gift or inheritance duties.
It is this last point that makes it an exceptional patrimonial tool. Transmitting forest costs around four times less in tax than transmitting an equivalent amount in cash: the base of the duties is reduced by three quarters. For a company director or a wealthy estate preparing its succession, it is a formidably effective transmission lever, which combines with the standard allowances.
The interest therefore lies not in the running yield — modest, around 1 to 2% — but in the fiscal combination and the nature of the asset. Forest is a tangible asset, uncorrelated from financial markets, whose value rests on the land and the timber resource. It is a holding for diversification, wealth-tax easing and transmission, not an income holding.
The 3 levers of the GFF
Three fiscal advantages stacked on a single asset
An 18% income-tax reduction on entry, a wealth-tax exemption on 75% of the units’ value, and the Monichon 75% allowance on transmission duties: no other asset class combines these three levers. For a heavily taxed estate liable to wealth tax, it is a triple optimisation — income tax, wealth tax and inheritance duties — in a single vehicle.
The succession weapon: transmit four times cheaper
The Monichon 75% allowance reduces the base of gift or inheritance duties by three quarters. Transmitting €100,000 of forest is taxed only on a €25,000 base, before standard allowances. To prepare a substantial transmission, it is one of the most effective schemes in French law — provided you respect the sustainable-management commitments that condition it.
Modest yield, limited liquidity, real risks
Clear-sightedness is essential: the running yield of a GFF is low (1 to 2%), liquidity is limited — reselling the units can take time — and the horizon is long. The value of the asset depends on the land and the timber resource, exposed to hazards (storms, fires, pests). It is not an income holding nor a liquid one: it is a diversification and transmission asset, to be sized accordingly.
Worked example — Jean-Marc, 60, industrial director in Nancy, liable to wealth tax
Jean-Marc, taxed at 45% and liable to wealth tax (IFI), is preparing the transmission of his estate to his children. He invests €50,000 in a GFF. Here is what the simulator calculates for the income-tax reduction, with the wealth-tax and transmission advantages added on top:
| Indicator | Amount / effect | Comment |
|---|---|---|
| Subscription | ≈ €50,000 | under the single-person cap |
| Income-tax reduction (18%) | ≈ €9,000 | in the year of subscription |
| Value exempt from wealth tax (75%) | ≈ €37,500 | outside the taxable base |
| Transmission allowance (Monichon) | 75% | base reduced to ≈ €12,500 |
Illustrative example — figures simplified for clarity and not contractual.
On €50,000 invested, Jean-Marc obtains ≈ €9,000 of immediate income-tax reduction, takes ≈ €37,500 out of his wealth-tax base, and — above all — will be able to transmit these units to his children on a base reduced by three quarters (≈ €12,500 before standard allowances). The combination of the three levers is found nowhere else.
In return, the running yield is modest and liquidity limited: Jean-Marc expects from this asset not an income but an easing of wealth tax and a transmission vehicle. The GFF makes full sense here because it fits a global succession strategy, provided the sustainable-management commitments are respected.
The GFF is thought of as a succession strategy, not a reduction line
This simulator quantifies the income-tax reduction; the wealth-tax and transmission advantages are added on top and form the real core of the GFF’s interest. But these advantages require respecting sustainable-management commitments, and the asset remains illiquid and lowly remunerative. The selection of the group and its integration into your succession strategy demand an expert eye.
Balmont Conseil is an independent wealth-management firm, a member of ANACOFI, with no capital ties to any GFF manager. We select groups on their management quality and solidity, and articulate them with your overall wealth-tax and transmission strategy, solely in your interest. Let’s arrange a meeting to fit this lever into your succession planning.
Frequently asked questions
What are the three fiscal advantages of the GFF?
An 18% income-tax reduction of the subscription on entry (up to €50,000 for a single person, €100,000 for a couple), a wealth-tax (IFI) exemption of 75% of the units’ value, and a 75% allowance on gift or inheritance duties under the Monichon regime. This combination of three levers on a single asset is rare.
How does the Monichon allowance work on transmission?
The Monichon regime reduces by 75% the base of gratuitous-transfer duties (gift or inheritance) on forestry-group units, subject to a sustainable-management commitment. Transmitting €100,000 of forest is thus taxed only on a €25,000 base, before standard allowances. It is one of the most effective transmission schemes in French law.
Is the GFF really exempt from wealth tax?
Partially: GFF units benefit from a wealth-tax (IFI) exemption of 75% of their value, the forestry asset being treated as professional to that extent, subject to respecting the sustainable-management commitments. The remaining 25% stays in the base. It is a substantial easing for those liable to wealth tax, but not a total exemption.
What are the drawbacks of the GFF?
The running yield is modest (1 to 2%), liquidity is limited — reselling the units can take time — and the investment horizon is long. The value of the asset depends on the land and the timber resource, exposed to natural hazards (storms, fires, pests). It is not an income holding nor a liquid one, but a diversification and transmission asset.
Why choose Balmont Conseil for a GFF?
Because the value of a GFF lies in articulating its three levers with your global wealth-tax and transmission strategy, and in respecting technical sustainable-management commitments. Balmont Conseil, an independent ANACOFI member, is tied to no group manager: we select GFFs on their management quality and integrate them into your succession planning, in your sole interest.
Results are provided for purely illustrative and educational purposes, based on the parameters you enter and simplified assumptions (2026 taxation, constant return, excluding inflation). They constitute neither personalised investment advice, nor tax advice, nor an offer to subscribe. Some investments carry a risk of capital loss. Before any decision, speak with an advisor.