French vineyard land snapped up in tax breaks
- Thursday 6 May 2004
According to the paper, more and more ex-bosses are selling their companies and buying vineyard properties with the money they are making from the sale.
This move has both financial and social motives. The acquisition of a vineyard ensures that the owner of such a property is not taxed for capital gains as the property itself (the vines) constitutes the principle source of revenue for the owners.
The main social benefit of buying such a property is the social standing it bestows on its owners.
‘These are “wine residences”’, says Stéphane Paillard, an oenologist and expert in vineyard properties.
Buying a domaine or château worth between €1.5m and €15m is, in these circumstances, secondary to having an interest in the wine it produces.
‘The price of these beautiful country houses…depends 80% on the quality of the masonry and 20% on the quality of the vineyard,’ says Le Monde.