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GFF (woodland and forest) simulator: tax reduction, IFI and estate transfer
The Groupement Foncier Forestier (GFF), or forestry land group, lets you invest in sustainably managed forests while combining three advantages rarely found in a single asset: an 18% income tax reduction on subscription (ceiling €50,000 / €100,000), an IFI exemption on 75% of the value of the shares, and a 75% allowance on transfer duties (Monichon regime). The running yield is modest (1 to 2%), liquidity is limited and the horizon long: it is above all a remarkable tool for passing on wealth and reducing IFI.
Of the amount invested (ceiling €50,000 / €100,000)
Shares exempt on 75% of their value
75% allowance on transfer duties (Monichon regime)
The simulator
Simulate your GFF tax reduction
The simulator calculates the income tax reduction; the IFI and estate transfer advantages come on top. Your data is neither stored nor transmitted.
Forestry land group simulator
Invest in forests: income tax reduction, partial IFI exemption and an allowance on transfer.
Indicative calculation, based on 2026 rules and the assumptions entered above.
Why
Why the GFF is the preferred transfer tool of wealthy families
The GFF is one of the very few investments to stack three distinct tax levers on the same asset. On entry, an income tax reduction of 18% of the amount invested. During ownership, an IFI exemption on 75% of the value of the shares, the forest asset being treated as a business asset to that extent. And above all, on transfer, the 75% Monichon allowance on the base for gift or inheritance tax.
It is this last point that makes it an exceptional wealth planning tool. Passing on forest costs about four times less in tax than passing on the same amount in cash: the taxable base is reduced by three quarters. For a business owner or a wealthy family preparing their estate, it is a formidably effective transfer lever, which can be combined with the standard allowances.
The appeal therefore lies not in the running yield — modest, around 1 to 2% — but in the combination of tax advantages and the nature of the asset. Forest is a tangible asset, uncorrelated with financial markets, whose value rests on the land and the timber resource. It is an investment for diversification, IFI reduction and estate transfer, not an income investment.
What the calculation shows
The 3 levers of a forestry investment group (GFF)
An 18% income tax reduction on entry, an IFI exemption on 75% of the value of the shares, and a 75% Monichon allowance on transfer duties: no other asset class combines these three levers. For heavily taxed wealth subject to IFI, it is a triple optimisation — income tax, real estate wealth tax and inheritance tax — in a single vehicle.
The 75% Monichon allowance cuts the taxable base for gift or inheritance tax by three quarters. Passing on €100,000 of forest is taxed on a base of only €25,000, before the standard allowances. When preparing a large transfer, it is a scheme worth studying — provided the sustainable management commitments it depends on are met.
Clear-sightedness is called for: the GFF's running yield is low (1 to 2%), liquidity is limited — selling the shares can take time — and the horizon is long. The value of the asset depends on the land and the timber resource, which is exposed to hazards (storms, fires, pests). It is neither an income investment nor a liquid one: it is a diversification and transfer asset, to be sized accordingly.
Case study
Case study: Jean-Marc, 60, industrial company director in Nancy, liable for IFI
Jean-Marc, taxed at 45% and liable for IFI, is preparing to pass on his wealth to his children. He invests €50,000 in a GFF. Here is what the simulator calculates for the income tax reduction, with the IFI and transfer advantages on top:
| Indicator | Amount / effect | Comment |
|---|---|---|
| Contribution | ≈ €50,000 | within the single-person ceiling |
| Income tax reduction (18%) | ≈ €9,000 | from the year of subscription |
| Value exempt from IFI (75%) | ≈ €37,500 | excluded from the taxable base |
| Transfer allowance (Monichon) | 75% | base reduced to ≈ €12,500 |
On €50,000 invested, Jean-Marc gets an immediate income tax reduction of ≈ €9,000, removes ≈ €37,500 from his IFI (real estate wealth tax) base and — above all — will be able to pass these shares on to his children on a base reduced by three quarters (≈ €12,500 before the standard allowances). All three levers are at work here at once.
In return, the running yield is modest and liquidity limited: Jean-Marc does not expect income from this asset, but IFI relief and a transfer vehicle. The GFF makes full sense here because it fits into an overall estate strategy, provided the sustainable management commitments are met.
In practice
The GFF is a matter of estate strategy, not a line on your tax return
This simulator costs the income tax reduction; the IFI and transfer advantages come on top and are the real heart of the GFF's appeal. But these advantages require sustainable management commitments to be met, and the asset remains illiquid and low-yielding. Selecting the group and integrating it into your estate strategy calls for an expert eye.
Balmont Conseil is a wealth management advisory firm based in Lyon, a member of ANACOFI-CIF, with no capital ties to any GFF manager. We select groupings on their management quality and soundness, and integrate them into your overall IFI (real estate wealth tax) and succession strategy, in your interest. Let's book an appointment to build this lever into your estate planning.
Frequently asked questions
What clients ask us.
What are the three tax advantages of a forestry investment group (GFF)?
An income tax reduction of 18% of the amount paid in on subscription (up to €50,000 for a single person, €100,000 for a couple), an IFI exemption on 75% of the value of the shares, and a 75% allowance on gift or inheritance tax under the Monichon regime. This combination of three levers on the same asset is rare.
How does the Monichon allowance work on transfer?
The Monichon regime reduces by 75% the base for gift and inheritance duties on shares in forestry groups, subject to a sustainable management commitment. Passing on €100,000 of forest is therefore taxed on a base of only €25,000, before the standard allowances.
Is a forestry investment group (GFF) really exempt from IFI (real estate wealth tax)?
Partially: GFF shares benefit from an IFI exemption on 75% of their value, the forest asset being treated as a business asset to that extent, subject to compliance with the sustainable management commitments. The remaining 25% stays in the taxable base. It is a substantial relief for IFI payers, but not a full exemption.
What are the drawbacks of the GFF?
The running yield is modest (1 to 2%), liquidity is limited — selling the shares can take time — and the investment horizon is long. The value of the asset depends on the land and the timber resource, which is exposed to natural hazards (storms, fires, pests). It is neither an income investment nor a liquid one, but a diversification and transfer asset.
Why choose Balmont Conseil for a forestry investment group (GFF)?
Because the value of a GFF lies in how its three levers fit with your overall IFI and succession strategy, and in compliance with technical sustainable-management commitments. Balmont Conseil, an open-architecture firm and member of ANACOFI-CIF, has no ties to any grouping manager: we select GFFs on their management quality and integrate them into your estate planning, in your interest.
