As Fine Wine prices depend on the wines' increasing rarity, a wine portfolio must be regarded as a medium/long term (5 year minimum) investment.
Fine Wines have over the last 10 years appreciated by approximately 12% per annum. Though past performance is not indicative of future returns, Fine Wines possess interesting attributes that rationally lead to higher prices over time. With this investments comes duration risk, and therefore we typically suggest clients to keep their investment for at least five years.
Furthermore unlike other more mainstream investments, this asset class is not liable for profits tax. Legally, Fine Wine is regarded as a wasting asset and as such attracts no Capital Gains Tax.
We encourage that you consult your tax advisor for up-to-date information in this regard.
Why should Fine Wine appreciate?
Both the varying weather conditions and the Appellation d'Origine Contrôlée Authorities in Bordeaux combine to limit the quantity of Fine Wine that can be produced each year. Worldwide demand for the best wines from the top vintages inevitably causes the values of these wines to rise as they mature and are consumed.
To ensure the very best performance from your investment, you can rely on Omtis Fine Wines' intimate knowledge of the wine market, its history in family investment, and our constant monitoring of auction prices around the world.