French General Tax Code
In forceI.-Properties in the nature of woods and forests are exempt up to three quarters of their taxable value if the conditions provided for in 2° of 2 of article 793 are satisfied.
II.-Units in forestry groups are exempt up to three quarters of the fraction of the net value corresponding to the assets mentioned in 3° of 1 of article 793 and under the same conditions.
III.-Property leased on a long-term basis under the conditions provided for in articles L. 416-1 à L. 416-6, L. 416-8 and L. 416-9 of the Rural Code and Maritime Fishing Code and those leased on a transferable basis under the conditions set out in articles L. 418-1 à L. 418-5 of the same code are exempt provided, on the one hand, that the term of the lease is at least eighteen years and, on the other hand, that the lessee uses the property in the exercise of his main profession and that he is the spouse, the lessor's spouse, partner in a civil solidarity pact or notorious cohabitee, one of their brothers or sisters, one of their ascendants or descendants, or the spouse, partner in a civil solidarity pact or notorious cohabitee of one of their ascendants or descendants.
Failing fulfilment of the last two conditions of the first paragraph of this III, these same properties are exempt up to three quarters of their value when the total value of the leased properties, regardless of the number of leases, does not exceed €101,897 and for half above this limit, provided that the term of the lease is at least eighteen years and that the lessee's descendants are not contractually deprived of the option to benefit from Article L. 411-35 du code rural et de la pêche maritime.
IV.Under the conditions set out in 4° of 1 of article 793, shares in agricultural landholding groups and agricultural landholding groups subject to law n° 62-933 du 8 août 1962 complémentaire à la loi d'orientation agricole et à l'article 11 de la loi n° 70-1299 du 31 December 1970 relative aux groupements fonciers agricoles are exempt, provided that these shares represent contributions consisting of real estate or real estate rights for agricultural use and that the leases granted by the group and their lessees meet the conditions set out in the first paragraph of III of this article.
If the last two conditions of the first paragraph of this IV are not met, these same assets are, subject to the long-term leases or transferable leases granted by the group meeting the conditions set out in the second paragraph of III, exempt up to three quarters of their value if the total value of the shares held does not exceed €101,897 and half above this limit.
V.-Rural property and shares in agricultural landholding groups and agricultural landholding groups representing the same property, leased under the conditions provided for in the first paragraph of III to a company whose main purpose is agricultural and which is more than 50% controlled by the persons mentioned in the same first paragraph, are exempt up to the value of the shareholding held in the lessee company by those of the aforementioned persons who carry out their main professional activity there.
Rural property and shares in agricultural landholding groups and agricultural landholding groups representing the same property, leased under the conditions provided for in the first paragraph of III, when they are made available to a company mentioned in the first paragraph of this V or when the right to the lease relating thereto is transferred to a company of the same nature, under the conditions provided for, respectively, in Articles L. 411-37 and L. 411-38 of the Code rural et de la pêche maritime, are exempt in the same proportions and under the same conditions as those defined in the first paragraph of this V.
