in the adventure of wine
Do I receive the same number of bottles every year?
We have structured our offers so that you receive, after tax at the source for French tax residents, the same number of bottles each year during the duration of the Bond. For example, for Chateau Clarisse this is six bottles a year.
So that you receive the same number of bottles each year, we took the total number of bottles you would receive as interests over four years and divided it by four. You can read more about this in article 5b in the terms and conditions, and you can access this document during the subscription process.
However, as indicated in article 5b, if the fiscal laws in France change, the number of bottles you receive as interest can change. The number of bottles is always calculated by rounding up or down to the nearest whole number.
Are the wines delivered to my home address? And can they be delivered outside of France?
The offers include the cost of delivery to mainland France (Corsica is not included), you can ask to have the wines delivered to an address outside of France, there is, however, an extra cost of delivery.
For example, for the UK, the extra cost is 25€ a year for six bottles, or 100€ for four years.
The cost of delivery depends on the zone.
These extra costs can be paid online, just like if you were contributing to a rewards project, for each project so that the company can pay for the extra cost of shipping. All you need to do is click on the correct button on the project page.
What tax is there to be paid?
In France, companies deduct a 30% tax at source on all interests paid on financial bonds; this tax was 39.5% before the 1st of January 2018. If you are a French tax resident earning less than 25,000€ a year or 50,000€ as a couple you are exempt from this tax.
If you are not a French tax resident, you are exempt from the 30% tax at source. As a non-French tax resident, you receive “gross” interests; this means your interest is not taxed 30% at the source by the company. For example, this is 150 € a year if you choose the “CLARISSE #6” worth 4000€. This is equivalent to 8.6 bottles of Château Clarisse with the ambassador price (17.50€). This is rounded up to 9 bottles each year.
Please note you will still need to declare the interest you receive in your home country, and you will declare the value of the interests received as cash at 6% and not the value of the wine at 10%. Please send us a signed hand-written letter stating that you are not a French tax resident.
There are two options available for non-French tax residents:
You receive the number of bottles delivered to your country of residence indicated on the offer. The tax paid by the company will instead be used to cover the extra cost of international shipping to Europe. Please contact us for more information about international shipping outside of Europe.
You can choose to receive extra bottles of wine equal to the value of the tax that will not be paid by the company. Please note that there will be an additional cost of shipping as the company will send you more wine whether it be in France or abroad. If you can receive the wines in mainland France, Corsica not included, (Family, Friends, or secondary residence) the extra cost of shipping will be far less. Please send us an email at email@example.com to receive a quote for the additional cost of shipping.
How do I declare my interests?
For French tax residents, WineFunding will send you an Imprimé Fiscal Unique (IFU) for your tax return for interest earned the year before. As part of the new tax regulations, the "flat tax", effective January 1st 2018, means you will pay no additional taxes, as was the case before. Please note that if you are not a French tax resident you will have to declare the value of your interests in your country of residence.
How is the interest rate calculated and how can I compare to other investments?
Comparing interests’ rates can be done by taking the amount of interests you receive from another investment net the tax and calculating how many bottles of wine delivered to you, you can buy.
For example, with the Clarisse#6 worth 4000€, you receive each year six bottles of Château Clarisse AOC Puisseguin St Émilion of which the public price is 26€ a bottle. The cost of shipping to mainland France is 20€ for a case of six.
The total is 26x6+20=176€ each year, or 704€ over four years for 4000€ invested.
The above calculation does not contain the tax. Since the 1st of January 2018, the French authorities have imposed a 30% tax (it was 39.5% before) on interests paid by a company. So, for an investor to receive 704€ of wine as interests, the company must pay 30% on top of that, i.e., 704/0.7=1006€. The company pays the 302€ difference to the French tax authorities. This tax means the IRR (internal rate of return) is 9.6% for the Clarisse#6.
The same calculation gives 10.6% for the Vielles Vignes #6, 10.3% for the Discovery plans, and 11.3% for the Puissegiun. If you were to receive the interests in cash the interests would be equal to 6%; however, if you receive the interests in wine, it is equal to 10%. 10% is the value that must be used when comparing other investment opportunities. The price of wine tends to increase every year, and this means that the interests you receive are higher than 10%.
What guarantees and insurances are in place?
How are we regulated?
In France, for bonds, we do not need to use a notary if there is no transfer of property. However, if the funds raised are used to buy a building, this acquisition will need to have notarized deed which we can send you a copy of on request.
We work with the well-known law firm Bignon Lebray to prepare all the legal documents, who are experts in financial, company, and agricultural law.
Does WineFunding take a commission?
WineFunding is paid by the estate and takes a small percentage fee of the total amount raised, which covers all the services provided by WineFunding to the estate.
WineFunding does not charge WineFunders; there are no entry fees, no management fees, and no exit fees.
You can find out more about fees here.
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