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Malraux Act simulator: tax reduction for property restoration
The Malraux Act rewards the full restoration of old buildings in protected areas with a tax reduction of 22% or 30% of the cost of works, counted up to €400,000 over 4 years (€100,000/year). Its decisive advantage for high taxpayers: this reduction is outside the €10,000 overall cap on tax breaks.
Reduction on the works, depending on the protected area
Of €10,000 — decisive for high tax bills
Over 4 years, unfurnished letting for 9 years
The simulator
Simulate your Malraux tax reduction
The simulator applies the rate and the works ceiling. Your data is neither stored nor transmitted.
Malraux Act simulator
Restore an old building in a protected area and get a 22 to 30% tax reduction on the works.
Indicative calculation, based on 2026 rules and the assumptions entered above.
Why
Why Malraux combines exceptional wealth and significant tax savings
The Malraux Act is not a tax-saving product like any other: it is a scheme that serves the preservation of France's architectural wealth. It covers the full restoration of old buildings located in Remarkable Wealth Sites (Sites Patrimoniaux Remarquables) or run-down historic districts, under the supervision of the Architectes des Bâtiments de France. The investor helps preserve an exceptional property and, in return, receives a tax reduction based on the restoration works.
Its tax power rests on two features. First, a high rate — 22% or 30% depending on the area — applied to a works base of up to €400,000 over four years. Second, and this is decisive, this reduction is outside the €10,000-a-year overall cap on tax breaks. For a heavily taxed person who has already used up that cap, it is a first-rate lever.
The wealth benefit goes beyond the tax saving alone. Once the restoration is complete, the investor holds real property, in a location that is by definition rare and protected, which they let and then keep or sell. But this dual nature — tax and property — imposes an absolute requirement: the operation must stand up as a property investment, regardless of the tax advantage.
What the calculation shows
The 3 levers of the Malraux Act
This is the advantage that sets Malraux apart from almost every other scheme: the reduction does not count towards the €10,000-a-year overall cap on tax breaks. A heavily taxed person can therefore combine Malraux with other advantages that already max out the cap. Combined with a 22% or 30% rate on a works base of up to €400,000, the effect on the tax bill is massive and hard to replicate elsewhere.
The fatal mistake would be to buy into a Malraux for the reduction alone. At the end of the restoration, you hold real property: if the location is mediocre, the developer unreliable or the market rent overestimated, the tax saving will not redeem a bad property deal. Due diligence on the quality of the location, the reliability of the operator and the reality of the rental market is non-negotiable.
The advantage requires a commitment to let the property unfurnished as the tenant's main residence for 9 years, and works carried out under the supervision of the Architectes des Bâtiments de France — and therefore longer, more demanding and sometimes more costly than a standard renovation. The entry ticket is high. These constraints are not details: they determine the real return and must be costed before committing.
Case study
Case study: Philippe, 57, surgeon in Toulouse
Philippe, taxed at 45% and having already used up his €10,000 tax-break cap, buys a flat to restore in a Remarkable Wealth Site (30% area). He commits €150,000 of works over 2 years. Here is what the simulator calculates:
| Indicator | Amount | Comment |
|---|---|---|
| Restoration works | ≈ €150,000 | within the €400,000 / 4-year ceiling |
| Reduction rate (SPR) | 30% | area with PSMV / run-down district |
| Total tax reduction | ≈ €45,000 | outside the tax-break cap |
| Unfurnished letting commitment | 9 years | tenant's main residence |
The €150,000 of works gives Philippe a tax reduction of ≈ €45,000, entirely outside the overall cap on tax breaks, which he had already used up. That is the whole appeal of the Malraux scheme for very heavy tax bills.
But Philippe commits only after checking the location, the developer's reliability and the reality of the market rent. At exit, he holds real property whose value must justify itself: the reduction is an accelerator, not a safety net against a bad deal.
In practice
Malraux: the property first, the reduction second
This simulator calculates the tax reduction on your renovation work. However, a successful Malraux investment is primarily judged as a real estate investment: location, the developer's reputation, the reality of the rental market, the scope of the work, and compliance with the requirements of the French Wealth Buildings authority. The tax reduction beyond the maximum limit is a real advantage, but it cannot salvage a poorly chosen project.
Balmont Conseil is a wealth management advisory firm based in Lyon, a member of ANACOFI-CIF, with no capital ties to any developer. Open architecture lets us select operations on their property and tax quality alone, with no sales pressure. Let's book an appointment to review a Malraux operation suited to your tax position and your assets.
Frequently asked questions
What clients ask us.
What is the Malraux reduction rate?
The reduction is 30% of the cost of works for buildings in a Remarkable Wealth Site covered by a safeguarding and enhancement plan (or in a run-down historic district), and 22% in other Remarkable Wealth Sites. Works are counted up to €400,000 over four years, i.e. €100,000 per year.
Does the Malraux reduction count towards the tax-break cap?
No, and that is its main advantage. The Malraux tax reduction is outside the €10,000-a-year overall cap on tax breaks. It is therefore aimed particularly at heavily taxed people who have already used up that cap with other schemes and are looking for a further tax-saving lever.
What are the constraints of the Malraux Act?
The investor undertakes to let the property unfurnished, as the tenant's main residence, for 9 years. The restoration works must be comprehensive and carried out under the supervision of the Architectes des Bâtiments de France, which makes them longer and more demanding than a standard renovation. The entry ticket is high and the operation must be sound regardless of the tax advantage.
What is the main risk of a Malraux investment?
The risk is not tax but property: a mediocre location, an unreliable developer or an overestimated market rent can turn the tax saving into a poor wealth decision. At the end of the restoration, you hold real property whose value must justify itself. Due diligence on the operation is therefore essential.
Why use Balmont Conseil rather than a Malraux property developer?
A developer sells its own programmes; its interest is to market them. Balmont Conseil, an open-architecture firm and member of ANACOFI-CIF, is not tied to any developer: we assess Malraux operations on their property and tax quality alone, check the location, the reliability of the operator and the reality of the rental market, and only retain those that genuinely serve your interests.
