The Malraux law is a French tax-relief scheme that lets investors reduce their income tax by up to 30% of the cost of restoration works on a historic building located in a protected heritage area. In return for fully restoring a characterful property and renting it out, the investor enjoys a powerful tax advantage that sits outside the cap on tax loopholes.
What is the Malraux law?
Created in 1962 by André Malraux, this law aims to protect and restore French architectural heritage. It encourages individuals to invest in restoring old buildings located in protected zones, in exchange for a tax reduction calculated on the cost of the works. It is one of the few schemes that combines the enhancement of an exceptional heritage property with tax optimisation.
What are the tax benefits for investors?
The Malraux tax reduction is calculated directly on the cost of restoration works, up to a limit of €400,000 over four consecutive years. Two rates apply depending on the property’s location:
- 30% for buildings in a Remarkable Heritage Site (SPR) covered by an approved PSMV, as well as in run-down old districts (QAD) and NPNRU districts.
- 22% for buildings in an SPR covered by an approved PVAP or whose restoration programme is declared to be in the public interest.
In practice, the benefit can reach up to €120,000 in tax reduction (30% of €400,000), or €88,000 at the 22% rate. A key advantage: this reduction is outside the overall €10,000/year cap on tax loopholes, making it particularly attractive for heavily taxed investors.
Which properties and zones are eligible?
The scheme applies to old buildings to be restored located in protected heritage areas: Remarkable Heritage Sites (with a PSMV or PVAP), run-down old districts and NPNRU districts. The restoration must be complete and all works are mandatorily supervised and approved by an Architect of the Buildings of France (ABF), the guardian of heritage compliance.
The conditions to meet
- Rent the property unfurnished as a main residence.
- Rent it for at least 9 years, within 12 months of completing the works.
- Do not rent to a member of your tax household, nor to an ascendant or descendant.
- Carry out a complete restoration of the building, supervised by the Architect of the Buildings of France.
- Comply with the schedule and administrative authorisations specific to protected areas.
Genesius’s role in your Malraux project
The success of a Malraux investment largely rests on the quality and compliance of the restoration works. This is precisely what Genesius does: we provide full project management of your restoration site, in compliance with the requirements of the Architect of the Buildings of France and the rules specific to protected areas.
- Technical study and detailed costing of eligible works.
- Coordination of all trades (structural work, fit-out, heritage finishes).
- Compliance with ABF requirements and administrative follow-up of the site.
- A single point of contact, from quote to handover, with regular reporting — including for non-resident investors.
You thus secure the works side of your operation, while your tax adviser and notary validate the tax and legal aspects.
Frequently asked questions about the Malraux law
What tax reduction does the Malraux law offer?
The reduction is 22% or 30% of the cost of restoration works, depending on the zone, up to €400,000 over 4 years — i.e. up to €120,000 in tax reduction.
Is the Malraux law affected by the cap on tax loopholes?
No. The Malraux tax reduction sits outside the overall €10,000-per-year cap on tax loopholes, so it can be combined with other tax benefits.
What are the rental obligations?
The property must be rented unfurnished as a main residence for at least 9 years, within 12 months of completing the works, and not to a member of your tax household.
Can a foreign investor benefit from the Malraux law?
The scheme reduces French income tax, so it benefits taxpayers taxed in France. A non-resident investor should check their tax situation with a specialist adviser.
Does Genesius handle the tax side?
No. Genesius carries out the restoration works and project management. The tax and legal structuring is handled by your tax adviser and notary, with whom we work in coordination.
This article is provided for general information only and does not constitute tax or investment advice. Rates and conditions are subject to change; check your eligibility with a tax adviser or notary before committing.