Malraux

The Malraux Law is a tax measure that allows high-income taxpayers to reduce their tax liability while investing in the restoration of French architectural heritage.

🎯 Main objective

• Reduce your income tax (up to 30% reduction on the amount of eligible work, capped at €400,000 over 4 years).

• Benefit from a tax advantage outside the overall cap on tax breaks.

✅ Advantages of Malraux

• Tax reduction of 22% or 30% depending on the sector.

• Regular rental income.

• No restrictions on rent caps or tenant resources.

• Asset diversification and the possibility of investing via SCPIs (real estate investment trusts).

• Leverage effect of credit and possible subsidies.

⚠️ Disadvantages to be aware of

• Commitment to rent unfurnished for a minimum of 9 years.

• Property subject to IFI (property wealth tax) under common law conditions.

• Eligible works strictly regulated.

• Heavy administrative management and reporting obligations.

• No division of ownership possible.

👤 Who is it for?

The Malraux Law is aimed at taxpayers who:

• are heavily taxed,

• are resident in France for tax purposes,

• wish to reduce their income tax while contributing to the preservation of cultural heritage.

🏗️ Which properties and works are eligible?

• Buildings located in a Site Patrimonial Remarquable (SPR) with approved PSMV or PVAP.

• Complete restoration work (roofs, facades, conversion into housing, necessary demolition, etc.).

• Investment possible directly, via an SCI or by subscribing to Malraux SCPI shares.

📌 Practical points

• Eligible expenses are capped at €400,000 over four years.

• Tax reductions can be carried forward for 3 years if they exceed the income tax due.

• No recourse in the event of the investor's death.

  👉 In summary: the Malraux Law is a powerful tool for reducing your tax bill while contributing to the restoration of French heritage. However, it requires a long-term commitment and careful selection of properties.

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