The Malraux law allows a tax reduction of 30% of restoration works with a ceiling of 400,000 € for a period of 4 consecutive years.
This rate varies depending on the location of the building :
- 22% for those located in a Remarkable Heritage Site with PVAP (Architectural and Heritage Development Plan) approved or whose restoration program has been declared of public utility.
- 30% for those located on a Remarkable Heritage Site with approved PSVM (backup and enhancement plan), QAD (old degraded neighbourhoods) and NPNRU (new national urban renewal program).
The new Malraux device now allows the seller to do the work. Previously, the work was decided upon and formally undertaken by the building’s co-owners. It is enough to justify the payment of the works to the companies and not to the Free Urban Land Association (AFUL).
The amount of expenses eligible for the tax reduction is then the amount corresponding to the price of the work to be carried out by the seller and actually paid by the investor in law Malraux 2018 to the construction company.
The conditions to be respected
- The tax reduction is conditional on a commitment to restore the entire building and to rent nude dwellings for main dwelling use for a minimum period of 9 years.
- The 2018 Malraux Lease Commitment must take effect within 12 months of the date of completion of the building’s work.
- The Malraux 2018 deduction is limited to €400,000 for a period of 4 consecutive years.
- The tax reduction of the Malraux Defiscalization Law 2018 extends over the period of actual payment of works and must not exceed 3 years after the date of issue of the building permit.However, in the case of archaeological excavations, the maximum period of 3 years may be increased by one year, which brings the overall period to 4 years.
- Where the portion of the tax reduction attributable to a taxation year exceeds the tax owing by the taxpayer in respect of that taxation year, the balance may be charged against the income tax owing for the following three years.
- Restoration works under Malraux law 2018 must be subject to a special authorization issued by the Prefect (ASP) "before" the start of the works.
- The work is necessarily followed by the Architects of the Buildings of France.