Introduced in 1962 by André Malraux, the Malraux scheme aims to encourage the preservation of France's architectural heritage. This tax mechanism enables investors to benefit from a significant tax reduction in return for restoring old buildings located in protected areas. Here is a full overview of the conditions and benefits offered by this scheme.

Objectives and eligible areas

The main objective of the Malraux law is to preserve the integrity of historic districts while encouraging property owners to invest in renovation. The properties concerned must be located in specific areas, such as :

• Sites Patrimoniaux Remarquables (SPR)
• Quartiers Anciens Dégradés (QAD)
• Zones de Protection du Patrimoine Architectural, Urbain et Paysager (ZPPAUP)
• Aires de Mise en Valeur de l'Architecture et du Patrimoine (AMVAP)

Eligibility requirements

To benefit from the tax advantages offered by the Malraux scheme, a number of conditions must be met:

• The property must be built and located in an eligible area. It must also be intended to be let empty for at least nine years after the work has been completed.
• Only certain types of work are taken into account, in particular those aimed at restoring the exterior of the building or converting premises into accommodation. Expenditure on modifications that alter the original appearance is not eligible.
• The maximum amount of eligible work is set at €400,000 over a four-year period. This condition enables investors to benefit from a tax reduction of up to 30% for buildings located in an SPR with an approved conservation plan, or 22% for other types of property in Paris.

Tax benefits

The tax benefits offered by the Malraux scheme are particularly attractive to high taxpayers. The tax reduction can be as much as €120,000 over four years, which represents a substantial saving for investors. What's more, if the spending limit is reached in a single year, the unused portion can be carried over to the following three years.