Wine Investment Group (GFV) differently with the “GFV by Canovia” community
Our Wine Investment Group (GFV)
For over 10 years, Canovia has been involved in the structuring of Wine Investment Groups, with the aim of reconnecting the land, the producer and the consumer.
For over 10 years, Canovia has been involved in the structuring of Wine iInvestment Groups, with the singular aim of rebuilding the link between the land, the producer and the consumer. In fact, GFV By Canovia's aim is to create a subtle balance between ownership of a rare piece of land and a privileged link with the people who shape it, understand the climates, and produce and mature the wines.
Preserving life in the long term
For this purpose, Canovia relies on the report of the Soil Microbiological Analysis Laboratory (LAMS), under the supervision of the land development and rural settlement company (SAFER) and the French Ministry of Agriculture and Finance. Canovia's GFVs are based on the long-term preservation of biodiversity to ensure sustainable, high-quality winegrowing With these results, we are able to guarantee our partnership with wine domains committed to sustainable agriculture.
The choice of a wine-grower for his know-how and values
As a GFV is structured for a minimum of 25 years, it's important that everyone involved has the same vision. That's why, for Canovia, any subscription by our partners must be motivated by the desire to support a wine estate and share a human adventure between the terroir and the winegrower. Each domain is carefully selected by Canovia, taking into account the way they work, their commitment to sustainable viticulture and the reliability of their winegrower.
A shared passion between partners and winemakers
Our GFVs enable individuals and corporate entities to participate in an experience that supports a winegrowing estate, preserves terroir ownership in France and shares a passion for wine. Without ignoring them, this philosophy takes priority over commonly accepted notions such as financial returns, capital gains and tax advantages.
The GFV is set up for the purpose of acquiring a specific parcel of vineyard land, with its own specific qualities, recognized for the production of wines with aromas characteristic of its cru. Collectively, the associates acquire this land: this is the primary market.
The plot is then leased to the winegrower. Using his know-how, the winegrower cultivates the vines in compliance with the cultural policies laid down for AOP and AOC wines controlled by the Institut National des Appellations d'Origine. Furthermore, in order to establish a brand identity, the winegrower's work on the soil is combined with an active marketing policy to allow him to sell his annual production in its entirety.
In return for the farm lease, the associate receives a yearly allocation of bottles of wine from the plot involved. Here again, to maintain the balance and strengthen the link between the winegrower and the owners of the plot, but also to ensure that the investment is not simply a tax avoidance tool, no tax benefits are granted by subscribing to our GFVs.
Subscribing to a GFV by Canovia is open to any individual or legal entity concerned with the protection and enhancement of the winegrowing terroir. In the case of a legal entity, this activity must fall within its corporate purpose.
In any case, and as opposed to an investment, GFV by Canovia is not intended to ensure the liquidity of unitholders. Like the estates of the great wine-growing regions, these GFVs are designed to stand the test of time and the passing of generations.
Although investment in a GFV is for a long-term period, any associate wishing to leave the group is free to do so. As the GFV by Canovia promotes a strong affectio societatis, it cannot force a partner to stay if his or her interests no longer correspond to those of the GFV.
Thus, during the course of its existence, a GFV may have to offer some of its shares following the departure of a partner - this is the secondary market. As the new associate is chosen on the basis of his or her values, the cohesion of GFV members is strengthened, and the human adventure around the vine continues among supporters of good wine.
In essence, each partner is indefinitely liable, in proportion to his or her share in the GFV's capital, for any debts incurred by the group. However, aware that such a project is no cake walk, Canovia, in its mission to structure the GFV, identifies the risks in order to limit their scope.
The management, indebtedness, operation and shareholding of the GFV are therefore strictly regulated in the statutes of each GFV to guarantee maximum security for the associates.
Tax treatment of the GFV by Canovia
For tax reasons, the value of the bottles is determined each year by the winemaker and a certified accountant.
Personal income tax
The individual associate must declare the value of the bottles to the tax authorities as property income:
- Micro-foncier system: if gross income from property does not exceed €15,000, the associate may choose this system. The taxable portion will then be determined after application of a flat-rate deduction of 30%.
- Actual tax regime: otherwise, or on the partner's option (irrevocable for 3 years), taxable income will be determined according to the actual tax regime. The shareholder will then be able to deduct the loan interest used to finance the purchase of the shares.
Corporate income tax on legal entities
The associate, a legal entity, must declare the value of the bottles to the tax authorities for corporate income tax purposes.
The tax is determined according to the current tax scale, with a reduced rate for small and medium-sized eligible companies where applicable.
Individual shareholders in corporate entities subject to corporate income tax are taxed only on dividend distributions.
In the event of resale on the secondary market, the exit of a partner is subject to different rules depending on the situation:
- If shares are sold more than three years after incorporation, transfer duties amount to €125.
- If shares are sold within three years of incorporation, transfer duties amount to 3% of the sale price, with a deduction applied.
Canovia takes care of the structuring of the GFV. We negotiate the vineyard eligible for the project, discuss with the future winegrower, have the quality of the living material studied by an analysis laboratory, and ensure the legal (subscription documents, statutes, etc.) and financial (financing plan) deployment.
The WMC partners
Canovia relies on a network of WMC (Wealth Management Consultant) partners recognized by the Financial Markets Authority. These advisors are responsible for meeting with those interested in the GFV project and informing them about the various technical elements of the operation, by assessing the suitability of the subscription to their personal situation. If the interested party so wishes, and after having been informed of the project as a whole, the WMC can offer to subscribe and accompany him/her through the process.
The WMC is in charge of accompanying its client in the completion of the subscription file and funds transfer, received on an escrow account until the constitution of the GFV.
Once the subscription files and all the funds have been received, Canovia organizes the constitution of the GFV in the presence of the winegrower, the manager and the notary. Each subscriber then receives a copy of the Kbis extract and a ownership certificate in his or her name, mentioning the number of shares subscribed.
Once the GFV is constituted, the parcel is acquired by the GFV with the funds of the subscribers.
The GFV, owner of the vineyard, gives it to the winegrower on a long-term lease, so that he can work and exploit it. At the end of the lease period (usually a minimum of 25 years), the lease may be automatically renewed from year to year, depending on the decision of the partners, or the vineyard may be sold to a third party or directly to the winegrower.
The winegrower seriously exploits the GFV vineyard throughout the year, for the entire duration of the lease.The exploitation by the winegrower allows each year, during the harvest, to reserve a part of the production to the subscribers so that they receive their endowment.
Each year, and for the lease duration, the associate receives wine bottles from the plot. The number of bottles received depends on the number of shares held by an associate. The first endowment arrives about two years after the GFV constitution, time corresponding to the realization of the first grape harvest, and of the wine making period.
Our dedicated team
Why choose Canovia ?
Thanks to our in-depth knowledge of the challenges facing the wine industry, Canovia has been working with winemakers in France's leading wine regions (Burgundy, Côte Rôtie, Champagne...) for over 10 years.