Contractor Questionnaire

Timber Supply Contracts provide sureties over the supply of material for infrastructure projects. 

For example, data centres now require an additional energy source that is deemed renewable. Biomass is a perfect solution for this approach and can support the sustainability criteria for these operations. 

Other projects that have successfully implemented biomass usage include

1. Hotels
2. Chicken farms
3. Office blocks
4. Housing developments
5. Industrial units
6. And more….
   
   Green Belt is uniquely placed to provide a guaranteed volume of material annually to your project. It can be delivered in round log or wood chip form and at a variety of moisture content levels. 
   
   Get in touch to explore how you can make forestry work for you. 

Taxation in Relation to Forestry and Woodlands

Income Tax and Corporation Tax

Profits or gains from the occupation of woodland in the State which is managed on a commercial basis and with a view to a profit are exempt from Income Tax and Corporation Tax (but not Universal Social Charge and Pay Related Social Insurance)

Capital Gains Tax

In the case of individuals, the value of the standing timber is not taken into account for CGT purposes. Where an individual disposes of woodlands, capital gains tax is chargeable on the lands only and not on the trees growing on the lands.

What is the position with inheritance tax on my forestry?

Your children for example, can inherit the forestry, subject to valuation and the threshold limits. They must retain it for 2 years before selling it on, but can manage it in the meantime – this can mean they can harvest timber from the forestry.

For full information on taxation of profits from the forestry, please consult the Revenue Operational Manual.

Invest in Forestry

Green Belt works with private investors, wealth funds and institutions interested in building a portfolio of forestry assets. Forestry is an excellent hedge versus inflation, and is a secure investment as harvesting can be based on positive market conditions.

Frequently Asked Questions on Investment in Forestry

What is the typical term for forestry investment?

It can range from 10 years onwards. The options for investment can include semi mature forestry, purchasing 'green land' for planting (attracts grants and premiums, and land is expensive, or buying 'Brown land' for replanting (no grants or premiums but land is less costly)

How Does Green Belt work with me?

Green Belt carries out extensive due diligence on lands or forests that meet your investment criteria. This includes desk top surveys, drone mapping and on site inventory. The data is compiled into a detailed spreadsheet outlining the total income and expenditure across the lifecycle.

What is the typical IRR from a forestry investment?

We realistically predict a 3-4% IRR, compounding, for forestry investments. This is a tax free return, except for USC and PRSI, based on the current rules applying.

What tax is paid on forestry investment?

The income derived from the occupation of commercial woodland is tax free, except for PRSI and USC. If you hold shares in a forestry investment, the transfer of shares is taxed, but the income derived from the occupation of commercial woodland is tax free. The forestry crop is not liable to CGT or to Stamp duty. Read more on the Taxation including Inheritance Tax in Relation to Forestry and Woodlands

Do I earn anything during the investment term, before clearfell?

You could earn from the tax free annual premiums paid for 15 years on new plantations. Earnings from forestry thinning operations can be paid out as dividends. We can compile a structured forestry portfolio to provide regular dividends to investors.

What value has my forestry in Biodiversity credits?

Nature based solutions are increasingly important for companies with reporting obligations and compliance requirements. Baselining the biodiversity function of the forests or woodland provide data to present in terms of CSRD reporting for example.

What risks is my forestry investment open to?

There are risks from fire, wind and pestilence. These can be mitigated against but can still persist. Forest insurance is recommended and available through Green Belt Ltd. Economically, there are market risks but as timber is best stored on the stump, it can increase in value as the markets recover. With a strategic view of your forestry portfolio, Greenbelt can manage economic risk effectively.

Why is forestry the best investment?

• Low risk to return ratio;
• Biological growth is not impacted by economic factors, it is safe and reliable;
• Generally a negative correlation to stock market indices;
• Traditional risks can be avoided through professional forest management;
• A forest is a tangible asset which is a source of value creation;
• Irish timber has an incredible untapped value for the bioeconomy;
• It is becoming more valuable as Carbon Capture becomes more important.

Download Documents: 

Download the Afforestation Grant and Premium Scheme 2023 - 2027 (pdf)

Land Valuations

Any forestry and woodland project requires suitable land. Green Belt can source and acquire those lands for you, across the country. 

For more than 40 years, Green Belts foresters have worked with local land owners and agents to acquire lands that meet the criteria for planting. 

We continue to leverage those relationships to provide a full service solution to our clients who are often too busy to be able to find the land themselves. 

Once identified using our screening service and expert on field assessment, the appropriate application can be submitted to the forest service. 

Wood Chipping

Timber Marketing & Sales

Road Grants

Forest roads are essential to develop sustainable access to your forest as it matures. A grant which covers approximately 80% of construction costs, is offered to allow a high standard of road to be built and developed into the plantation. A single consent system is in place which requires an engineers report to accompany some roads. This scheme is administered by DAFM

Green Belt have constructed more than 180,000 metres of excellent forest roads across the country in the last 5 years enabling timber be mobilised to market. Contact your local forester to learn about helping to mobilise your timber.

Forest Roads Scheme

Continuous Cover Forestry