In summary…
The Malraux Law rewards the complete restoration of historic buildings located in protected areas with a tax reduction of 22% or 30% of the cost of the work, capped at €400,000 over four years (€100,000 per year). Its decisive advantage for high-income earners is that this reduction is not subject to the overall €10,000 cap on tax breaks. In return, there is a commitment to rent the property unfurnished for nine years, the work must be overseen by the Architects of the Buildings of France, and the quality of the real estate project must be verified independently of the tax benefit.
- 22 % or 30 % reduction on the work, depending on the protected area
- Excluding the cap on tax breaks €10,000 — decisive for high tax brackets
- Works selected up to €400,000 over 4 years, unfurnished rental for 9 years
Simulate your Malraux tax reduction
The simulator applies the rate and the maximum amount of work. Your data is neither stored nor transmitted.
Malraux Law Simulator
Restore an old building in a protected area and get 22 to 30 % of tax reduction on the work.
Results are provided for illustrative and educational purposes only, based on the parameters entered and simplified assumptions (2026 tax year, constant return, excluding inflation). They do not constitute personalized investment advice, tax advice, or an offer to subscribe. Some investments carry a risk of capital loss. Before making any decision, consult an advisor.
Why Malraux combines exceptional wealth and significant tax breaks
The Malraux Law is not a tax-saving product like any other: it is a mechanism dedicated to the preservation of French architectural wealth. It aims at the complete restoration of historic buildings located in designated Wealth Sites or in deteriorated historic districts, under the supervision of the Architects of the Buildings of France. The investor contributes to the preservation of an exceptional property and, in return, receives a tax reduction based on the restoration work.
Its tax power stems from two characteristics. Firstly, a high rate—22% or 30% depending on the zone—applied to eligible work that can reach €400,000 over four years. Secondly, and this is crucial, this tax reduction is not subject to the overall cap on tax breaks of €10,000 per year. For a high-income taxpayer who has already exhausted this cap, it is a significant advantage.
The investment's value extends beyond mere tax benefits. Upon completion of the restoration, the investor owns a tangible property in a prime, protected location, which they can then rent out, retain, or resell. However, this dual nature—both tax-related and real estate-related—imposes an absolute requirement: the operation must be sound as a real estate investment, independent of the tax advantage.
The 3 levers of the Malraux law
Beyond the ceiling of niches: the true privilege
This is the key advantage that distinguishes Malraux from almost all other tax breaks: the tax reduction is not subject to the overall cap of €10,000 per year on tax breaks. A high-income taxpayer can therefore combine Malraux with other already substantial tax advantages. Coupled with a rate of 22% or 30% on a tax base of up to €400,000 for renovation work, the impact on the tax bill is significant and difficult to replicate elsewhere.
A real estate transaction that must stand on its own
The fatal mistake would be to invest in a Malraux property solely for the tax reduction. After the restoration, you own a tangible asset: if the location is poor, the developer unreliable, or the market rent inflated, the tax savings won't compensate for a bad real estate deal. Due diligence regarding the quality of the location, the developer's credibility, and the reality of the rental market is non-negotiable.
Strict constraints to be integrated from the outset
The benefit requires a commitment to rent the property unfurnished as a primary residence for nine years, and that the work be carried out under the supervision of the French National Wealth Architects (Architectes des Bâtiments de France) – making it longer, more demanding, and sometimes more expensive than a standard renovation. The initial investment is significant. These constraints are not minor: they determine the actual profitability and must be carefully calculated before committing.
Case study: Philippe, 57 years old, surgeon in Toulouse
Philippe, taxed at 45% (%) and having already exhausted his €10,000 tax break limit, acquires an apartment to renovate in a Remarkable Wealth Site (zone 30% (%)). He commits €150,000 to renovations over 2 years. Here's what the simulator calculates:
| Indicator | Amount | Comment |
|---|---|---|
| Restoration work | ≈ €150,000 | up to a ceiling of €400,000 / 4 years |
| Reduction Rate (SPR) | 30 % | area with PSMV / degraded neighborhood |
| Total tax reduction | ≈ €45,000 | outside the ceiling of the niches |
| Commitment to rent unfurnished | 9 years | tenant's main residence |
The €150,000 worth of renovations entitles Philippe to a tax reduction of approximately €45,000, entirely outside the overall limit on tax breaks, which he had already exhausted. No other standard scheme would have allowed him this saving in his situation: this is precisely the advantage of the Malraux scheme for those with very high tax liabilities.
But Philippe only commits after verifying the location, the developer's reliability, and the accuracy of the market rent. Upon completion, he owns a tangible property whose value must stand on its own: the discount is an accelerator, not a safety net against a bad deal.
Malraux: property first, then a reduction
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 exceptional—it won't salvage a poorly chosen project.
Balmont Conseil is an objective wealth management firm, a member of ANACOFI, with no capital ties to any developer. This objectivity allows us to select projects solely based on their real estate and tax advantages, without any marketing pressure. Let's make an appointment to examine a Malraux operation tailored to your tax situation and assets.
Frequently Asked Questions
What is the tax reduction rate under the Malraux law?
The reduction is 30% of the cost of works for buildings located in a Remarkable Wealth Site covered by a preservation and enhancement plan (or in a deteriorated historic district), and 22% in other Remarkable Wealth Sites. The works are eligible up to a limit of €400,000 over four years, i.e., €100,000 per year.
Does the Malraux tax reduction fall within the ceiling for tax breaks?
No, and that's its major advantage. The Malraux tax reduction is exempt from the overall €10,000 annual cap on tax breaks. It is therefore particularly suited to high-income taxpayers who have already exhausted this limit with other schemes and are looking for an additional tax-saving measure.
What are the constraints of the Malraux law?
The investor commits to renting the unfurnished property as a primary residence for nine years. The restoration work must be comprehensive and carried out under the supervision of the French Wealth Architects (Architectes des Bâtiments de France), making it longer and more demanding than a standard renovation. The initial investment is high, and the project must be of high quality regardless of the tax benefits.
What is the main risk of a Malraux investment?
The risk isn't tax-related but real estate-related: a poor location, an unreliable developer, or an inflated market rent can turn tax savings into a bad investment. Upon completion of the restoration, you own a tangible asset whose value must stand on its own merits. Therefore, due diligence on the transaction is essential.
Why use Balmont Conseil rather than a Malraux developer?
A developer sells their own projects; their interest lies in marketing them. Balmont Conseil, a firm member of ANACOFI, is not linked to any developer: we evaluate Malraux projects solely on their real estate and tax merit, verify the location, the operator's reliability, and the reality of the rental market, and only retain those that truly serve your interests.
Results are provided for illustrative and educational purposes only, based on the parameters entered and simplified assumptions (2026 tax year, constant return, excluding inflation). They do not constitute personalized investment advice, tax advice, or an offer to subscribe. Some investments carry a risk of capital loss. Before making any decision, consult an advisor.
