Historic monuments: 15-year retention period, direct ownership

To deduct expenses related to a listed historical monument according to the specific rules for such buildings, three conditions must be met in addition to the nature of the property. The BOFiP (Official Bulletin of Public Finances) links these conditions to Article 156 bis of the French General Tax Code (CGI). You commit to retaining ownership of the building for at least fifteen years from the date of acquisition. In principle, you own it directly. It has not been placed under joint ownership, except in certain cases. If the commitment is broken, the income for the year of the breach and the two following years is increased by one-third of the expenses improperly deducted, a concept defined below.

This page addresses these conditions and their consequences. It does not detail the percentages of deductible expenses; these are covered on another page. Nor does it address the specific exceptions for civil law partnerships, the situation of non-residents, or the French wealth tax (IFI).

Which buildings are affected?

The scheme applies to buildings classified or registered as historical monuments. According to the BOFiP, it also applies to buildings of national wealth due to the label of the Wealth Foundation, granted on a favorable opinion from the departmental unit of architecture and wealth (UDAP) (BOI-RFPI-SPEC-30, § 10).

Two points of clarification regarding the label, according to BOI-RFPI-SPEC-30-10:

• work must not begin before the label is awarded by the Wealth Foundation; ;
• It is not required that the labeled building be open to the public.

A request for registration is not sufficient to bring the property into the scope of the regime: registration does not have retroactive effect (BOI-RFPI-SPEC-30-10).

The three conditions of Article 156 bis

The BOI-RFPI-SPEC-30 (§ 30) indicates that, since the taxation of income in 2009, the regime is subject to three conditions, subject to exceptions.

The commitment to keep it for 15 years

How is the deadline calculated?

The fifteen-year period is calculated from the date of acquisition of the property (BOI-RFPI-SPEC-30-30, § 50). For a purchase, the starting point is the deed of acquisition. The French tax authority, impots.gouv.fr, stipulates the same condition: ownership must be retained for a minimum of 15 years from the date of acquisition.

The commitment period begins upon acquisition, even if the acquisition occurred before January 1, 2009 (BOI-RFPI-SPEC-30, § 30; impots.gouv.fr). For a property acquired before this date, BOI-RFPI-SPEC-30-30 (§ 70) reduces the commitment period by the holding period already elapsed. The remaining period is calculated by referring to this paragraph.

For property received through inheritance, gift, or bequest, the heirs, donees, or legatees may assume the commitment. Their commitment then covers the remaining term (§ 60 and § 190). If they do not assume the commitment and wish to subsequently benefit from the scheme, they undertake to retain the property for fifteen years from the date of transfer, or from the date of death in the case of inheritance (§ 190).

How is the commitment made?

The commitment arises from the inclusion of deductible expenses in the income tax return (form 2042 or 2044-SPE). No additional documentation is required (BOI-RFPI-SPEC-30-30, § 80). Depending on whether the property generates taxable income, the expenses are declared on form 2044-SPE or 2042 (BOI-RFPI-SPEC-30-40). The owner must attach a statement detailing the deducted amounts and the date of the classification or registration order, or a copy of the label (BOI-RFPI-SPEC-30-40).

This breaks the commitment

The BOFiP notes the failure to comply with the commitment in the event of the sale of the property. It also covers the sale of a divided right, an undivided fraction or shares (BOI-RFPI-SPEC-30-30, § 110).

The cost of breaking up

The income for the year of the termination and the two following years is increased by one-third of the amount of expenses improperly claimed (BOI-RFPI-SPEC-30-30, § 100). The example in the BOFiP (§ 130) applies this one-third to each of the three years, on all expenses improperly claimed since the acquisition. This is the net rental income.

According to § 110, improperly charged charges are of two kinds:

• the portion of the land deficit charged against total income which exceeds the standard deduction limit (€10,700 according to the BOFiP); ;
• property expenses deducted from total income under paragraph 1 ter of section II of article 156 of the French General Tax Code (CGI).

The taxpayer must voluntarily, within the deadline for filing the relevant tax return, reintegrate these expenses into their income for the year of the termination and the two following years (§ 150). Otherwise, the tax authorities will apply standard tax rules, including late payment interest and a penalty of 10%.

Cases without surcharge

• Dismissal, disability, death. No reassessment is made if, during the commitment period, the owner's employment contract is terminated by their employer (dismissal or retirement), they are classified as disabled in the 2nd or 3rd category, or they die. The same applies to the other member of a couple filing jointly. The commitment must have been made before the event, and a causal link must exist between the event and the termination (§ 180).
• Gift. No additional payment is due if the donees assume the commitment for its remaining term. In the case of a gift of bare ownership, the donee retains bare ownership until the end of the donor's commitment (§ 200).
• Death and heirs. The heir or legatee may assume the commitment for the remaining term at the time of death. If they do not assume it, the benefit obtained by the deceased is not called into question; to benefit from the scheme themselves, they must commit for fifteen years from the date of death (§ 190).

Direct detention

The BOI-RFPI-SPEC-30-30 (§ 210) establishes the principle: only historic buildings held directly by taxpayers are generally eligible for the tax regime. It specifies that the regime does not apply to buildings held by non-corporate civil law companies, subject to exceptions detailed elsewhere in the BOFiP.

For buildings acquired before January 1, 2009, the BOFiP excludes the condition of direct ownership for civil companies not subject to corporation tax, including in the case of acquisition of a split right (§ 220).

For ownership by a civil society, exceptions exist under certain conditions: to be checked before acquisition, with the current texts.

The absence of a condominium ownership structure

The regime does not apply to buildings that have been divided on or after January 1, 2009. This condition applies from the taxation of 2009 income. Prior divisions are not subject to the condition (BOI-RFPI-SPEC-30-30, § 460 and § 470).

The BOFiP (Official Bulletin of Public Finances) provides for exceptions. For divisions carried out between January 1, 2009, and December 31, 2017, the exception required approval from the Minister of the Budget, after consultation with the Minister of Culture (§ 500). This page does not provide further details on this case.

Since 2018, the prior approval procedure for subdivision has been eliminated (§ 520). A listed or registered building, in whole or in part, that is converted into a condominium must be used for residential purposes for at least 75% of its living space (§ 530 and § 540). Premises intended for commercial or professional use are not considered residential (§ 540). Buildings certified by the Wealth Foundation are excluded from this exception (§ 530).

The condition of 75 % units must be met no later than two years after the date of division, calculated from date to date (§ 550). The co-owners retain their shares for fifteen years. The transfer of undivided shares during this period breaks the commitment (§ 500 and § 560).

Numerical example (fictitious profile)

Situation. Marc, a hypothetical owner, buys a listed building directly on July 15, 2026. He deducts his expenses according to the historical monuments regime. Assumption: €90,000 of expenses improperly deducted within the meaning of § 110 from the acquisition until the sale, i.e., the portion of the property deficit deducted from total income beyond the standard limit and the property expenses deducted from total income.

Issue. Marc sells the building on July 15, 2034, eight years after the purchase. The fifteen-year commitment runs until July 15, 2041.

Strategy. Apply the rule in § 100, with the example in § 130 in mind: one third of the charges unduly charged is added to the income of each of the three years 2034, 2035 and 2036.

Result.

The calculation yields additional net rental income, not tax: the latter depends on the tax rate applied to your income. If Marc had given the property to his son, who would then assume the commitment for its remaining term, no surcharge would have been applied (§ 200).

Second case, for co-ownership. Assumptions: a listed or registered building, but not certified, is divided into units in 2019; it has 800 m² of living space; the condition is assessed within two years of the division. With 620 m² allocated to housing, the share is 77.5%: the threshold of 75% is reached. With 560 m², it is 70%: it is not. The actual assessment follows § 540 of the BOFiP (French Official Tax Bulletin), based on your surface areas.

These profiles are fictitious. The figures illustrate the mechanism and do not predict any outcome for your specific situation.

What changes depending on your situation

• The date of acquisition of the building, before or after January 1, 2009.
• The form of ownership: direct, in a civil company, in joint ownership.
• The date of the possible division of the building into lots, and the allocation of the surfaces.
• The nature of the property: listed, registered or certified.
• Life events: dismissal, disability, death, gift.
• The amount of charges already incurred since the acquisition.

The rule depends on your situation. No results are guaranteed.