The Malraux law is a French tax scheme designed to encourage the restoration and preservation of architectural heritage. Created for investors who wish to combine heritage commitment with tax optimization, this law offers a unique opportunity to enhance real estate properties while reducing taxes.
The Principles of the Malraux Law
Adopted in 1962, the Malraux Law aims to preserve buildings located in protected areas such as Remarkable Heritage Sites (RHS), former protected sectors, or degraded old neighborhoods.
The mechanism is based on two main axes :
-
Commitment to complete restoration works, supervised by a Buildings of France architect and subject to authorization.
-
Renting out the renovated property for a minimum period of 9 years.
In return, the investor benefits from a tax reduction calculated on the amount of the work, which can reach :
-
30% in a Remarkable Heritage Site covered by a Preservation and Enhancement Plan (PEP),
-
22% in a Remarkable Heritage Site covered by an Architectural and Heritage Enhancement Plan (AHEP).
The amount of works considered is capped at €400,000 over 4 years, allowing a maximum tax reduction of €120,000.
The Benefits of the Malraux Law
-
Significant tax optimization : The tax reduction is directly applicable to income tax, which can result in substantial savings for households with high tax rates.
-
Enhancement of an exceptional property : Properties eligible for the Malraux law are often located in historic or tourist areas, offering strong long-term appreciation potential.
-
Contribution to the preservation of national heritage : Investing under the Malraux scheme means actively participating in the conservation of valuable architectural elements.
-
No overall cap on tax niches : Unlike other schemes, the Malraux tax reduction is not subject to the global cap of €10,000.
Why Go Through a Professional ?
The Malraux law is complex and requires in-depth expertise. Here's why it is crucial to consult a professional :
Tailored support : Professionals analyze your fiscal, wealth, and financial objectives to offer a customized solution.
Mastery of legal and administrative constraints : The procedures (authorizations, monitoring of work) are strictly governed by regulations and require specific expertise.
Investment security : A professional ensures the project's compliance, the quality of the work, and adherence to legal obligations, thus reducing risks.
Global tax optimization : A wealth management advisor can incorporate the Malraux scheme into a coherent wealth strategy.
Conclusion
The Malraux Law is much more than just a tax scheme: it represents a unique opportunity to invest in character properties while actively contributing to the preservation of French architectural heritage. Due to the complexity and specific constraints of this law, working with a qualified professional is essential to maximize the benefits and secure your project. Entrust your investment to an expert and turn your heritage commitment into a lasting success.