In summary…
The Forestry Land Group (GFF) allows investment in sustainably managed forest areas, combining three rare advantages in a single asset: an income tax reduction of 18% upon subscription (capped at €50,000/€100,000), an exemption from wealth tax (IFI) of up to 75% of the share value, and a 75% reduction in inheritance tax (Monichon scheme). Current yields are modest (1% to 2% of the share value), liquidity is limited, and the investment horizon is long: it is primarily an excellent tool for wealth transfer and wealth tax relief.
- IR reduction of 18 % of the payment (maximum €50,000 / €100,000)
- Reduced IFI: shares exempt at 75 % of their value
- Transmission: 75% reduction on duties (Monichon scheme)
Simulate your GFF discount
The simulator calculates the income tax reduction; the IFI and inheritance tax benefits are added to this. Your data is neither stored nor transmitted.
Forestry Land Group Simulator
Invest in forestry: income tax reduction, partial exemption from wealth tax and tax relief on inheritance.
Results are provided for illustrative and educational purposes only, based on the parameters entered and simplified assumptions (2026 tax year, constant return, excluding inflation). They do not constitute personalized investment advice, tax advice, or an offer to subscribe. Some investments carry a risk of capital loss. Before making any decision, consult an advisor.
Why the GFF is the preferred wealth transfer tool for high-net-worth individuals.
The GFF (Groupement Forestier de Forêt - Forestry Forestry Group) is one of the very few investments to combine three distinct tax advantages on a single asset. Upon entry, there is an income tax reduction of 18% of the investment. During the holding period, there is an exemption from the French wealth tax (IFI) on 75% of the share value, as the forestry asset is considered professional up to this threshold. And most importantly, upon transfer, there is the Monichon allowance of 75% of the taxable base for gift or inheritance tax.
It is this last point that makes it an exceptional asset management tool. Transferring forest ownership is approximately four times less expensive from a tax perspective than transferring an equivalent amount in cash: the tax base is reduced by three-quarters. For a business owner or a wealthy individual planning their succession, it is a remarkably effective transfer tool, which can be combined with standard tax allowances.
The appeal, therefore, lies not in the current yield—modest, in the range of 1 to 2—but in the combination of tax advantages and the nature of the asset. Forests are tangible assets, uncorrelated with financial markets, whose value is based on the land and the timber resource. It is an investment for diversification, wealth tax relief, and inheritance planning, not an income-generating investment.
The 3 levers of the GFF
Three tax advantages stacked on a single asset
Income tax reduction of 18% upon entry, exemption from wealth tax on 75% of the share value, and a 75% Monichon allowance on inheritance tax: no other asset class combines these three advantages. For a heavily taxed portfolio subject to wealth tax, this represents triple optimization—income tax, real estate wealth tax, and inheritance tax—all within a single vehicle.
The inheritance weapon: transferring assets for four times less
The Monichon allowance of 75% (%) reduces the taxable base for gift or inheritance tax by three-quarters. Transferring €100,000 worth of forest is taxed on only €25,000 of the value, before standard allowances. For preparing a substantial transfer, this is one of the most effective mechanisms under French law—provided that the sustainable management commitments that make it a condition are met.
Modest returns, limited liquidity, real risks
Clarity is essential: the current yield of the GFF (Groupement Forestier de France) is low (1 to 2), liquidity is limited—reselling shares can take time—and the investment horizon is long. The asset's value depends on the land and timber resources, which are subject to risks (storms, fires, pests). It is neither an income-generating nor a liquid investment: it is a diversification and inheritance asset, and should be chosen accordingly.
Concrete example: Jean-Marc, 60 years old, industrial manager in Nancy, subject to the IFI (French wealth tax).
Jean-Marc, taxed at 45% (%) and liable for the French wealth tax (IFI), is preparing to transfer his assets to his children. He invests €50,000 in a GFF (Groupement Foncier Forestier - Forestry Investment Group). Here's what the simulator calculates for the income tax reduction, with the IFI and inheritance tax benefits added:
| Indicator | Amount / effect | Comment |
|---|---|---|
| Payment | ≈ €50,000 | under the ceiling, single person |
| IR reduction (18 %) | ≈ €9,000 | from the year of subscription |
| Value exempt from IFI (75 %) | ≈ €37,500 | outside the taxable base |
| Transmission degradation (Monichon) | 75 % | reduced base to ≈ €12,500 |
On an investment of €50,000, Jean-Marc obtains approximately €9,000 in immediate income tax reduction, reduces his wealth tax base by approximately €37,500, and—most importantly—will be able to pass these shares on to his children with a tax base reduced by three-quarters (approximately €12,500 before standard allowances). This combination of three advantages is unavailable elsewhere.
In return, the current yield is modest and liquidity limited: Jean-Marc doesn't expect income from this asset, but rather tax relief from the French wealth tax (IFI) and a vehicle for transferring wealth. The GFF (Groupement Foncier de Financement - French Land Trust) makes perfect sense here because it fits into a comprehensive estate planning strategy, provided that the sustainable management commitments are respected.
The GFF sees itself as an estate planning strategy, not a savings line.
This simulator calculates the income tax reduction; the added benefits of wealth tax (IFI) and inheritance tax advantages constitute the true core of the GFF's appeal. However, these advantages require adherence to sustainable management commitments, and the assets remain relatively illiquid and offer low returns. Selecting the right group and integrating it into your estate planning strategy requires expert guidance.
Balmont Conseil is an objective wealth management firm, a member of ANACOFI, with no capital ties to any GFF manager. We select groups based on their management quality and financial strength, and integrate them into your overall wealth tax and inheritance strategy, solely in your best interest. Let's make an appointment to incorporate this tool into your estate planning.
Frequently Asked Questions
What are the three tax advantages of the GFF?
An income tax reduction of 18% of the initial investment (up to €50,000 for a single person, €100,000 for a couple), an exemption from wealth tax (IFI) of 75% of the share value, and a 75% allowance on gift or inheritance tax under the Monichon scheme. This combination of three advantages on a single asset is rare.
How does the Monichon allowance work in transmission?
The Monichon scheme reduces the tax base for gift or inheritance transfers of shares in forestry groups by 75%, subject to a commitment to sustainable management. Transferring €100,000 worth of forestry is thus taxed on only €25,000 of the value, before standard allowances. This is one of the most effective transfer mechanisms under French law.
Is the GFF really exempt from IFI?
Partially: GFF shares benefit from an exemption from the French wealth tax (IFI) up to 75% of their value, as the forestry asset is considered professional up to this amount, subject to compliance with sustainable management commitments. The remaining 25% remains subject to the tax. This is a substantial reduction for those liable for the IFI, but not a total exemption.
What are the disadvantages of GFF?
The current yield is modest (1 to 2), liquidity is limited—reselling shares can take time—and the investment horizon is long. The asset's value depends on the land and timber resources, which are exposed to natural hazards (storms, fires, pests). It is not an income-generating or liquid investment, but rather an asset for diversification and wealth transfer.
Why choose Balmont Conseil for a GFF?
Because the value of the GFF lies in the integration of its three key elements with your overall wealth tax and inheritance strategy, and in adherence to technical sustainable management commitments. Balmont Conseil, a member firm of ANACOFI, is not affiliated with any group management company: we select GFFs based on their management quality and integrate them into your estate planning, solely in your best interest.
Results are provided for illustrative and educational purposes only, based on the parameters entered and simplified assumptions (2026 tax year, constant return, excluding inflation). They do not constitute personalized investment advice, tax advice, or an offer to subscribe. Some investments carry a risk of capital loss. Before making any decision, consult an advisor.
