Reducing your tax: what each scheme offers, and what it requires you to do.

Tax reductions and credits are capped at €10,000 per household per year (Article 200-0 A of the French General Tax Code), regardless of income or number of children. This cap increases to €18,000 for the portion derived from the Girardin overseas scheme and SOFICA investments.

Several tax breaks are excluded: contributions to a retirement savings plan (PER), which are deducted from income, the Malraux Law, historic monuments, and property deficit. Beyond €10,000 in benefits per year, these other tax breaks take effect.

A tax credit is deducted from the tax due, euro for euro: €1,000 of tax credit means €1,000 less tax, regardless of your tax bracket. A tax deduction is deducted from taxable income: it is equal to your marginal tax bracket (Article 163 quatervicies of the French General Tax Code for the PER).

10,000 euros paid into a PER (Retirement Savings Plan) saves 4,100 euros in a 41 % bracket, 3,000 euros in a 30 % bracket, and 1,100 euros in an 11 % bracket. That's why we start with the bracket: it indicates which lever works best for you.

Both restore old real estate and escape the tax loophole cap. The Malraux law provides a reduction of 22% or 30% of the work, depending on the sector, on up to €400,000 of expenses over four years (article 199 tervicies of the CGI): up to €120,000 less tax, in exchange for a nine-year rental commitment.

The historic monuments scheme allows for the deduction of renovation work from total income, without limit (Article 156 of the French General Tax Code), in exchange for a commitment to retain the property for fifteen years. The Malraux tax reduction is the same regardless of your income bracket; the historic monuments deduction is all the more valuable the higher your income bracket.

Until December 31st. A payment into a PER, a subscription or work paid for in 2026 reduces the tax on 2026 income, which you will declare in the spring of 2027: a payment on December 30, 2026 counts in full for 2026. The next day, it counts for the following year.

Your PER (Retirement Savings Plan) limit is shown on your latest tax assessment, including any unused limits from previous years (Article 163 quatervicies of the French General Tax Code). In December, places become scarce in Girardin and Malraux schemes: it's best to decide in November.