Forestry Investment Tax Relief in France in 2026: Budget, GFF and GFI

Updated 28 July 2026

Investing in forests in France, either directly or through a groupement forestier (a French forestry investment partnership, in the form of a GFF or a GFI), lets you diversify your wealth while benefiting from tax relief: a 25% tax credit on the purchase, and a 75% exemption on the IFI (France's real-estate wealth tax) and on inheritance duties. This article covers the types of investment, the budget required, and the taxation rules for 2026.

Key takeaways

• Wood is a tangible asset with low correlation to financial markets, a modest current yield (1% to 3% a year), and no guarantee over the long term.
• Three routes exist: buying land directly, the groupement foncier forestier (GFF), and the groupement forestier d'investissement (GFI), which is authorised by the AMF.
• Budgets range from a few thousand euros for units in a groupement to more than €300,000 for a directly-owned, tax-optimised purchase.
• The 25% DEFI tax credit (Dispositif d'Encouragement Fiscal à l'Investissement, France's forestry tax-incentive scheme) applies up to €6,250 of eligible spending for a single person, or €12,500 for a couple.
• Units in a groupement forestier qualify for a 75% exemption on inheritance duties and on the IFI, subject to a sustainable-management commitment.

What are the benefits of investing in a forest?

Investing in woodland comes with some real advantages:

• Forestry investment helps support the value of France's woodland heritage
• Wood is a tangible asset, and its value can be less correlated with the volatility of financial markets
• Forestry investment can potentially generate income from managing the woodland, from timber harvesting, or by granting access to hunters
• Forestry investment remains exposed to risks (weather, disease, fire) that are only partly covered by insurance. The current yield (timber harvesting, hunting leases) generally runs between 1% and 3% a year, to which long-term land appreciation may be added, with no guarantee for the future.
• An entrepreneurial project is also possible, by creating leisure activities such as tree climbing, hiking trails, or a campsite...
• The tax relief on forestry investment can be advantageous under certain conditions (for example, holding the land or the investment units for at least eight years).
• Forestry investment combines enjoyment and yield for nature lovers.

What are the different types of forestry investment?

Buying a forest directly

Buying a forest directly is mostly for enthusiasts. The market is narrow, and investing in woodland comes with obligations. The Plan Simple de Gestion (PSG, France's mandatory forest-management plan) requires planning over 15 to 30 years: developing, managing and maintaining the woodland. If you are not an expert, hiring a specialist or a cooperative to do it for you is essential.

Forestry partnerships (groupements forestiers)

Investing through a groupement forestier is possible in two forms:

The groupement foncier forestier (GFF)

Units are purchased from a groupement forestier that owns the forest. The company manages the woodland and distributes the income it generates.

The advantage of this type of financial investment is that it lets you diversify your wealth without direct exposure.

Apps such as Finary let you track all your investments in one place, including units in forestry partnerships, alongside the rest of your wealth.

The groupement forestier d'investissement (GFI)

The groupement forestier d'investissement differs from the GFF in a few ways:

• It must be authorised by the Autorité des Marchés Financiers (AMF)
• It must diversify geographically and across tree species
• The entry ticket is lower
• Liability is limited to the amount contributed

Forestry savings companies (sociétés d'épargne forestière)

They consist of 60% forestry assets or forestry units, and 40% financial assets.

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What budget do you need to invest?

The average price per hectare of forest is around €4,850 in 2024, according to the SAFER (Société d'Aménagement Foncier et d'Établissement Rural, France's rural land agency). The price varies with soil fertility, ease of operation, tree species, average tree age, and the presence of nearby industries.

To benefit from favourable tax treatment, a direct forestry investment requires buying a substantial area, with a minimum capital of €300,000. A three-hectare plot nearby is enough for a leisure investment.

Buying units in a groupement forestier costs between €10,000 and €300,000.

For an investment in forestry through a société d'épargne forestière, the budget will range between €9,500 and €19,000 to obtain the maximum tax benefit.

Where and how to buy a forest?

France has several large forestry regions: Sologne for hunting, Île-de-France for leisure, the forested areas of Périgord for truffles, or the Landes for porcini mushrooms. A forestry investment in Brittany is very rare and represents a significant wealth asset.

Buying a forest directly from the 75% of private owners is almost impossible. The market is discreet and properties are scarce, because forests are often passed down through inheritance.

To find forests for sale, the people to contact are notaries, forest-owner unions, cooperatives and forestry experts, or specialised agencies. The SAFER can also provide information.

Units can be subscribed on:

• The primary market, when the forestry group is formed or in the event of a capital increase
• The secondary market, where investors trade units originally issued on the primary market

What is the taxation of forestry investment in 2026?

Forestry investment benefits from the DEFI forêt scheme (literally, the Tax Incentive Scheme for Forestry Investment), extended by the finance law until 31 December 2027. Since the 2023 finance law, the benefit takes the form of a tax credit rather than a deduction. Buying a forest directly, or units in a groupement forestier, qualifies for:

• A 25% tax credit on the amount invested (DEFI acquisition), capped at €6,250 of spending for a single person and €12,500 for a couple, i.e. up to €1,562 or €3,125 of tax credit. In return, the investor commits to keeping the assets for 15 years and applying a sustainable-management plan to them. The tax credit is subject to France's overall cap on tax breaks.
• A 75% exemption on gift or inheritance duty on the value of the units, with no cap on the amount, provided they have been held for at least 2 years (the Monichon regime, a French rule for forestry assets). A 30-year sustainable-management commitment is required.
• A 75% exemption from the real-estate wealth tax (IFI), under the same sustainable-management conditions.

Other components of the DEFI forêt scheme also apply:

• A 76% tax credit on insurance premiums covering storm or fire risk (DEFI assurance), capped at €15 per insured hectare, with an overall cap of €6,250 in premiums (€12,500 for a couple).
• A 25% tax credit on forestry work (DEFI travaux), capped at €6,250 for a single person and €12,500 for a couple.
• A 25% tax credit on the fees paid under a management contract, capped at €2,000 for a single person and €4,000 for a couple.
• A 50% reduction on contributions paid to authorised syndicated associations (associations syndicales autorisées), capped at €1,000 per household.

Forests: a long-term wealth investment

Investing in woodland can be a way to diversify your wealth while gaining tax relief. Tax relief on forestry investment depends on meeting the legal requirements and on your personal situation. That said, keep in mind that buying a forest directly is best suited to experienced investors, and that a return on forestry investment only comes over the long term. To go further, this guide to investing and growing your money covers the other wealth-building options worth considering.

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Frequently asked questions

What return can you expect from a forestry investment?

The current yield of a forest, from timber harvesting and leases (hunting, leisure), generally runs between 1% and 3% a year. Long-term land appreciation may add to this, with no guarantee. A forest is primarily a diversification and wealth-transfer investment.

What budget do you need to invest in a forest?

Units in a groupement forestier are accessible from a few thousand euros, often between €10,000 and €300,000. A tax-optimised direct purchase requires more capital, while a simple leisure investment can be limited to a few hectares.

Is forestry exempt from the real-estate wealth tax (IFI)?

Yes, woodland, forests and units in forestry partnerships qualify for a 75% IFI exemption on their value, provided a 30-year sustainable-management commitment is made. Only 25% of the value then remains subject to the IFI.

What is the difference between a GFF and a GFI?

The groupement foncier forestier (GFF) is a wealth-management structure for a forest. The groupement forestier d'investissement (GFI) is authorised by the AMF, requires geographic and species diversification, offers a lower entry ticket, and limits liability to the amount contributed.

Sources

DRAAF Grand Est, French Ministry of Agriculture: tax incentive scheme for forestry investment (DEFI)

CNPF and Fransylva: DEFI acquisition fact sheet, rates and caps

SAFER Group, the forest market in France in 2024 (May 2025)

BOFiP, impots.gouv.fr: tax credit for forestry investments