Malraux tax scheme
A tax scheme allowing owners who fully restore a building in a protected historic area or ZPPAUP to deduct restoration works from their overall taxable income without a cap. The tax reduction reaches 30% of expenditure in protected areas and 22% in ZPPAUP zones. It targets high-income taxpayers and typically involves a mixed financing structure (mortgage plus renovation loan) arranged by the broker.
Key points
- 30% reduction in protected historic areas and 22% in ZPPAUP or AVAP zones, with no overall cap.
- Restoration must be comprehensive and approved by the Architectes des Bâtiments de France.
- Not subject to the €10,000 tax-niche ceiling that applies to other tax reductions.
- Mixed financing is common: a mortgage for acquisition and a renovation loan for restoration works.
Frequently asked questions
Which investor profile is the Malraux scheme genuinely suited to?
It mainly targets taxpayers with a marginal rate of 41% or 45%, as the tax reduction is most valuable where the tax burden is highest. Works are often substantial and require solid cash reserves or tailored bank financing.
Why is the Malraux scheme exempt from the tax-niche ceiling?
The legislator excluded the Malraux scheme from the €10,000 global cap because of its aim to preserve the national architectural heritage. This makes it one of the rare mechanisms capable of producing a very high tax reduction in one or a few years.
How does the broker structure financing for a Malraux transaction?
The broker typically separates two envelopes: a standard mortgage for the land and existing habitable parts, and a dedicated renovation loan for the restoration tranche. They coordinate drawdowns with construction progress and ensure the bank understands the specific regulatory framework.
In practice
A taxpayer in the 45% bracket finances the restoration of a building in a protected area for €300,000 in works. The 30% tax reduction amounts to €90,000 spread over the works period, drastically reducing the actual net cost of the operation.
Official sources
- Special buildings (Malraux scheme) · impots.gouv.fr
- 'Malraux' tax reduction (BOI-IR-RICI-200-30) · BOFiP — impots.gouv.fr
- Housing and financing information · ANIL