French industrialists are increasingly buying vineyard properties in order to lower their tax bills and increase their social standing, according to French newspaper, Le Monde.
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.
Written by Oliver Styles