Our goal is to create a circular and local economy around the production of our wood. In order to promote and create local employment, we seek to collaborate as much as possible with regional stakeholders which are close to our plots.
Both scenarios are possible. This information will be detailed on the certificate that you will receive following your purchase.
The certificate will indicate "Planting timeframe: Date" in the case of an unplanted Paulownia and "Planted on: Date" for those already in the ground.
At Treesition, we respect the seasonality of our trees, which explains the delay that may exist between the time of sale of the contract and the planting of the tree(s).
Most of our income comes from the sale of trees, because each tree only requires an investment of €50 for its entire growing cycle.
After the trees are harvested, part of the profits are shared between our investors, our partner farmers, and the rest of the profits go back to Treesition to support our mission.
Becoming a tree owner means investing in its planting and in the planting of future trees through Treesition's activities. The organic systems created by planting trees, which you help to establish through your purchase, are beneficial for the environment: trees improve the water cycle. When it rains, water is held in the soil by the roots, which also limits run-off. And when it's dry, the roots release this water to moisten the soil.
What's more, the wide canopy of the trees reduces the impact of the sun on the soil, thus lowering its temperature (which limits evaporation of water and conserves it as much as possible).
Owning trees is good for the environment because trees absorb CO₂ as they grow. Furthermore, the Paulownia tree can absorb up to 55 kg of CO₂ per year. This is up to 10 times the absorption of some other tree species.
The latest IPCC report indicates that droughts, floods and heatwaves are already exceeding the tolerance threshold of plants and animals and exposing millions of people to a lack of water and food. Helping to improve the water cycle therefore has a tangible impact on climate change.
As we plant on farmers' land, the prospect of a second cycle depends on the status of our partnership with them. If the partnership is maintained, it will be possible to acquire the future tree for a new cycle.
The acquisition price and return on investment may differ from those of the first cycle.
We have submitted an Information Note to the Financial Services and Markets Authority, thereby placing our business under the supervision of the said authority.
Atypical investments, also called "alternative" or "pleasure" investments, are investments that offer the possibility of a financial return, but which do not depend on financial instruments (stocks, bonds, etc.).
They generally concern investments in diamonds, renewable energies, exotic forests and woods, precious metals, rare earths, stamps, works of art, manuscripts, or wine... This is also the case for the ecological investments that we offer at Treesition.
To limit the risk of losing your investment, it is pooled at plot level.
This means, for the ‘SereniTree’ option, that if fewer trees reach maturity than there are purchasers, the value the sale of the wood will be distributed to the investors in proportion to the number of plants that have reached ‘Maturity’ divided by the number of ‘Purchasers’ (all options combined) on the plot.
For the option ‘LiberTree’, the sale of wood is distributed to investors as follows: 40%*(Total income of the plot/Number of plants in the plot).
For example:
1000 plants are planted on plot A and 1000 Purchasers have bought the plants.
At the time of cutting, 900 trees on plot A have reached ‘Maturity’.
Of which 800 purchasers have subscribed to the "SereniTree" option on plot A:
The ‘SereniTree’ Purchasers on plot A will each receive:
[Number of ‘Mature’ trees on plot A / Number of Purchasers on plot A] x Pre-established buyback price (in gross euro per unit)
= (900/1000) x 65
= 90 % x 65
= 58.5 (gross euro per unit)
Of which 200 purchasers have subscribed to the ‘LiberTree ’ option on plot A:
The total income from selling the 900 trees that have reached ‘Maturity’ is 600,000 euros.
The ‘LiberTree’ Purchasers on plot A will each receive:
[Total income from the sale on plot A (in euros) / Number of initial plants on plot A] x 40 %
= 1.000.000 / 1000
= 1.000 x 40 %
= 400 (gross euros per unit)
The gross gain will thus be equivalent to 40% of the income from the average sale price of timber from plot A
The capital gain from your investment with Treesition is included in your income tax return. This tax is progressive, its rate is between 0.24 and 3.39 ‰ (per thousand). The basic tax is determined by the current legislation.
The amount determined is then increased by applying the cantonal and municipal annual coefficients.
N.B. Cantonal and municipal taxes cannot exceed 10 ‰ (per thousand) of the taxable wealth.
Each situation may have its own specificities, and the information shared in this section does not replace the advice of a tax lawyer who may know your specific situation.
The Spanish tax authorities consider the capital gain from the sale of the wood as income.
This must be reported on your income tax return (in direct assessment or in objective assessment).
The capital gain is therefore subject to a progressive tax rate of up to 47 % depending on your income from work or professional activity.
However, the capital gain from the sale of the wood can, under certain conditions, be considered as a return from a forestry activity. A correction index is therefore applied to your tax base. This index depends on the age of the tree at the time that it is cut down. In our case, for a maturity of less than 30 years, it will be 26 %.
Each situation may have its own specificities, and the information shared in this section does not replace the advice of a tax lawyer who may know your specific situation.
The French tax authorities consider our trees as movable property.
When individuals sell movable property, if the sale price is less than or equal to €5,000 (CGI, Art. 150 UA, II-2°), the capital gain on the latter is tax-exempt.
In the case of a sale of more than €5,000, the capital gain is subject to income tax. The capital gain is taxed at the proportional rate of 19 % (CGI, Art. 200B), to which social security contributions (BOI-RPPM-PSOC) must be added at a rate of 17.2 %.
Please note that a 5 % annual tax allowance is granted from the second year of ownership of a movable property.
Each situation may have its own specificities, and the information shared in this section does not replace the advice of a tax lawyer who may know your specific situation.
In Belgium, there are as of yet no specific regulations for atypical financial products. The general rules of the tax code must be followed.
If the private investor uses their own assets to acquire their trees, the capital gain will not be taxable due to the rule of "Gestion en bon père de famille de son patrimoine privé".
However, if the administration is able to prove that the purchase intention is speculative, for example if the investor uses credit to buy trees in large quantities, the capital gain could be taxed as miscellaneous income.
In conclusion, the risk of paying capital gains tax is low given that, to obtain a return on investment, one must be patient while the tree produces its wood. As the investor is completely passive in this process, there is little chance that the situation will be considered as an extension of income of a professional nature.
Each situation may have its own specificities, and the information shared in this section does not replace the advice of a tax lawyer who may know your specific situation.
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