French purchase of winery
Migration Program Details & Application
Program Overview
Purchase a French winery
Project Description
The French wine market is undergoing a profound adjustment. There is an oversupply of mid-to-low-end AOC wineries in Bordeaux; in October 2025 alone, more than 50 wineries with Chinese investment were listed for sale, with starting bids for wineries including 60 hectares of vineyards and renovated châteaux as low as €150,000. However, the average price of vineyards in the Champagne region is approximately €1.1 million per hectare, and the average price of Grand Cru vineyards in Burgundy exceeds €7 million per hectare, indicating that land values in top-tier appellations remain strong.
Purchasing a winery does not require special government permission, and foreigners enjoy the same home-buying rights as French citizens. However, for non-EU buyers, the agricultural operating license (Autorisation d'exploiter) has been tightened since 2025, requiring a detailed business plan and proof of agricultural skills. Winery purchases do not grant residency rights. Buyers should focus on three key hurdles: the SAFER right of first refusal, transaction costs of approximately 7%–8% in notary fees and transfer tax, and a technical assessment of the vineyard.
Project Description
The French wine market is undergoing a profound adjustment. There is an oversupply of mid-to-low-end AOC wineries in Bordeaux; in October 2025 alone, more than 50 wineries with Chinese investment were listed for sale, with starting bids for wineries including 60 hectares of vineyards and renovated châteaux as low as €150,000. However, the average price of vineyards in the Champagne region is approximately €1.1 million per hectare, and the average price of Grand Cru vineyards in Burgundy exceeds €7 million per hectare, indicating that land values in top-tier appellations remain strong.
Purchasing a winery does not require special government permission, and foreigners enjoy the same home-buying rights as French citizens. However, for non-EU buyers, the agricultural operating license (Autorisation d'exploiter) has been tightened since 2025, requiring a detailed business plan and proof of agricultural skills. Winery purchases do not grant residency rights. Buyers should focus on three key hurdles: the SAFER right of first refusal, transaction costs of approximately 7%–8% in notary fees and transfer tax, and a technical assessment of the vineyard.
Eligibility & Requirements
Evaluate
Advantages:
1. Foreign buyers are not subject to nationality restrictions, do not require government approval, and are eligible to apply as citizens of the country.
2. SCI (Civil Real Estate Company) in conjunction with Pacte Dutreil can achieve a 75% estate tax reduction for family inheritance – the tax rate left to the heirs can be reduced to as low as 11.25%;
3. The CAP agricultural subsidy of approximately €280 million is allocated annually and can be used for investments in vineyard restructuring and winery modernization;
4. If the shares are held for 22 years or more and then sold, capital gains tax is completely exempted; if the shares are held for 30 years or more, social security surcharge is also completely exempted.
5. Property tax (Taxe Foncière) is levied based on the cadastral value of the land. Non-residents and residents are treated equally, and historical buildings may apply for exemptions or reductions.
Key risks and costs:
1. SAFER's right of first refusal: All rural property transactions must be notified to SAFER, who has a two-month window to decide whether to purchase the land at the same price;
2. The transaction incurs a one-time additional fee of 7%–8% (notary fee + transfer tax), which cannot be covered by a loan;
3. Non-EU buyers must apply for agricultural operating qualifications, which takes 2–4 months;
4. The French inheritance tax rate for non-lineal heirs can be as high as 60%, so it is necessary to plan ahead using SCI in conjunction with Dutreil;
5. The 2026 budget introduces new regulations that may subject pure holding companies with non-operating assets to an annual tax of 2% (for holding fine wines, yachts, etc.). The nature of winery assets needs to be examined—this has a significant impact on the pure asset holding structure and wineries must be held through an operating company (SCEA) to avoid additional tax burdens.
6. The production cost of a typical AOC winery is about 1,800 euros per 900-liter oak barrel, while the selling price is only about 943 euros, resulting in a loss of about 857 euros per barrel. Small wineries should be especially careful in their selection.
Advantages:
1. Foreign buyers are not subject to nationality restrictions, do not require government approval, and are eligible to apply as citizens of the country.
2. SCI (Civil Real Estate Company) in conjunction with Pacte Dutreil can achieve a 75% estate tax reduction for family inheritance – the tax rate left to the heirs can be reduced to as low as 11.25%;
3. The CAP agricultural subsidy of approximately €280 million is allocated annually and can be used for investments in vineyard restructuring and winery modernization;
4. If the shares are held for 22 years or more and then sold, capital gains tax is completely exempted; if the shares are held for 30 years or more, social security surcharge is also completely exempted.
5. Property tax (Taxe Foncière) is levied based on the cadastral value of the land. Non-residents and residents are treated equally, and historical buildings may apply for exemptions or reductions.
Key risks and costs:
1. SAFER's right of first refusal: All rural property transactions must be notified to SAFER, who has a two-month window to decide whether to purchase the land at the same price;
2. The transaction incurs a one-time additional fee of 7%–8% (notary fee + transfer tax), which cannot be covered by a loan;
3. Non-EU buyers must apply for agricultural operating qualifications, which takes 2–4 months;
4. The French inheritance tax rate for non-lineal heirs can be as high as 60%, so it is necessary to plan ahead using SCI in conjunction with Dutreil;
5. The 2026 budget introduces new regulations that may subject pure holding companies with non-operating assets to an annual tax of 2% (for holding fine wines, yachts, etc.). The nature of winery assets needs to be examined—this has a significant impact on the pure asset holding structure and wineries must be held through an operating company (SCEA) to avoid additional tax burdens.
6. The production cost of a typical AOC winery is about 1,800 euros per 900-liter oak barrel, while the selling price is only about 943 euros, resulting in a loss of about 857 euros per barrel. Small wineries should be especially careful in their selection.
Application Process & Advice
suggestion
1. Prioritize mid-range wineries with complete winemaking facilities, and avoid projects that are "ruins + require expensive renovations"; the current Bordeaux mid-to-low-end market has a large bargaining space, making it a buyer's market window;
2. Assemble a professional team as early as possible: an agricultural lawyer (leading the SAFER approval process), a bilingual notary, an independent winemaking consultant, and a tax expert are all indispensable;
3. Sufficient budget allocation: In addition to the purchase price, prepare an additional transaction fee of 7%–8%, and a renovation and equipment upgrade budget of at least 15%–35%, plus an operating reserve of 15%–30%.
4. The pre-sale contract (Compromis de Vente) must include: SAFER's non-exercise of the right of first refusal as a precondition for closing, and a deposit refund clause in case of financing failure;
5. The winery, equipment and brand are held by SCEA (agricultural management company), and the castle and land are held by SCI, a two-tiered structure to achieve Pacte Dutreil's 75% inheritance tax exemption eligibility;
6. Long-term estate tax planning: Utilize the 15-year gift exemption to transfer assets to the next generation in installments, avoiding notary fees and high inheritance taxes;
7. Apply for organic (Bio) certification, utilize CAP eco-subsidies, increase export premiums, and prepare for the future carbon sink market;
8. Careful consideration of operations: Respect AOC regulations and winemaking traditions, and plan for a holding period of 5 to 10 years or more.
Process of purchasing a French winery
Step 1: Project Definition and Preliminary Review (4–12 weeks)
The overall budget and funding structure were determined, a multidisciplinary professional team was assembled, and pre-approval for loans was obtained from banks such as Crédit Agricole. Non-EU buyers applied for agricultural operating licenses (Autorisation d'exploiter).
Step 2: Finding wineries and getting quotes (2–8 months)
Select wineries through professional intermediaries, conduct on-site inspections of vineyards (soil, vine age, equipment), and request technical evaluation reports from winemaking consultants.
Step 3: Sign the pre-purchase agreement (Compromis de Vente)
A pre-sale agreement is signed between the two parties at a notary public's office, clearly stating the price, closing conditions, and deposit (usually 5%–10%). The notary public issues a Declaration of Intent to Sell (DIA) to the SAFER, and the buyer has a 10-day statutory cooling-off period during which they can withdraw without penalty.
Step 4: SAFER review period (2-month statutory window)
SAFER assesses the feasibility of a buyer's agricultural business plan and can intervene within two months by exercising its right of first refusal. Only about 0.71 TP3T of transactions are intervened annually, and most compliant buyers are approved smoothly.
Step 5: Sign the final contract (Acte Authentique)
After passing through the SAFER window, the final sales contract is formally signed in the notary's office. The buyer pays the remaining balance, and the notary withholds and pays the notary fee and transfer tax of approximately 7%–8% on their behalf, completing the transfer of ownership on-site.
Step 6: Land Registration (4–12 weeks)
The notary public submits the authenticated documents to the Land Registry, and after registration is completed, the buyer receives the official title certificate.
Total time: Approximately 6–12 months
The two-month window for SAFER is a critical point, and may be extended to 14 months if the title is complex or loan approval is slow.
1. Prioritize mid-range wineries with complete winemaking facilities, and avoid projects that are "ruins + require expensive renovations"; the current Bordeaux mid-to-low-end market has a large bargaining space, making it a buyer's market window;
2. Assemble a professional team as early as possible: an agricultural lawyer (leading the SAFER approval process), a bilingual notary, an independent winemaking consultant, and a tax expert are all indispensable;
3. Sufficient budget allocation: In addition to the purchase price, prepare an additional transaction fee of 7%–8%, and a renovation and equipment upgrade budget of at least 15%–35%, plus an operating reserve of 15%–30%.
4. The pre-sale contract (Compromis de Vente) must include: SAFER's non-exercise of the right of first refusal as a precondition for closing, and a deposit refund clause in case of financing failure;
5. The winery, equipment and brand are held by SCEA (agricultural management company), and the castle and land are held by SCI, a two-tiered structure to achieve Pacte Dutreil's 75% inheritance tax exemption eligibility;
6. Long-term estate tax planning: Utilize the 15-year gift exemption to transfer assets to the next generation in installments, avoiding notary fees and high inheritance taxes;
7. Apply for organic (Bio) certification, utilize CAP eco-subsidies, increase export premiums, and prepare for the future carbon sink market;
8. Careful consideration of operations: Respect AOC regulations and winemaking traditions, and plan for a holding period of 5 to 10 years or more.
Process of purchasing a French winery
Step 1: Project Definition and Preliminary Review (4–12 weeks)
The overall budget and funding structure were determined, a multidisciplinary professional team was assembled, and pre-approval for loans was obtained from banks such as Crédit Agricole. Non-EU buyers applied for agricultural operating licenses (Autorisation d'exploiter).
Step 2: Finding wineries and getting quotes (2–8 months)
Select wineries through professional intermediaries, conduct on-site inspections of vineyards (soil, vine age, equipment), and request technical evaluation reports from winemaking consultants.
Step 3: Sign the pre-purchase agreement (Compromis de Vente)
A pre-sale agreement is signed between the two parties at a notary public's office, clearly stating the price, closing conditions, and deposit (usually 5%–10%). The notary public issues a Declaration of Intent to Sell (DIA) to the SAFER, and the buyer has a 10-day statutory cooling-off period during which they can withdraw without penalty.
Step 4: SAFER review period (2-month statutory window)
SAFER assesses the feasibility of a buyer's agricultural business plan and can intervene within two months by exercising its right of first refusal. Only about 0.71 TP3T of transactions are intervened annually, and most compliant buyers are approved smoothly.
Step 5: Sign the final contract (Acte Authentique)
After passing through the SAFER window, the final sales contract is formally signed in the notary's office. The buyer pays the remaining balance, and the notary withholds and pays the notary fee and transfer tax of approximately 7%–8% on their behalf, completing the transfer of ownership on-site.
Step 6: Land Registration (4–12 weeks)
The notary public submits the authenticated documents to the Land Registry, and after registration is completed, the buyer receives the official title certificate.
Total time: Approximately 6–12 months
The two-month window for SAFER is a critical point, and may be extended to 14 months if the title is complex or loan approval is slow.