The investment real estate by Malraux: for défiscaliser fast and a lot

If the operation is time-consuming, a real estate purchase Malraux allows to obtain a tax reduction of 22% to 30% of the expenses incurred.

The Malraux law promotes the rehabilitation of property former character. The State provides assistance to landowners who perform work for hire then the property renovated. The housing should be located in remarkable sites (SPR) covered by a and backup plan (PSMV) or a plan of valorisation of architecture and heritage (PVAP), or for any operation carried out in these sites and declared to be of public utility. The lease must take effect within twelve months from the date of completion of the work.

recommended Length of time : fifteen ansRisque of loss over one year : 15 %

The capital is guaranteed ?

No. You are not immune to a price drop.However, the quality of the building and the location of operations - often located in city centres - offer good protection.

The money is available ?

Yes, but that's pretty theoretical. In consideration of the tax benefits, you agree to rent the home as your main residence for a period of nine years. If you sell before, you will have to repay the tax benefit and pay an annual default interest of 4.80 %.

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How much does it yield ?

The profitability of rental income is low : around 3 % gross. On the other hand, the investment offers, in principle, prospects for capital gains.

What is the tax rule ?

The tax reduction applies to all transactions for which an application for a building permit or a statement of work was filed after January 1, 2009 (prior to this date, see box). It is equal to 22 % for a building located in an RPD that is covered by a PVAP or whose restoration is a public utility, and to 30 % for buildings located in a RPD covered by the PSMV. The expenditure of work and renovation are retained in the limit multi-year, eur 400 000, over four years. When the fraction of the tax reduction for a year exceeds the taxpayer's tax, the balance is due on the income tax for the following three years.

The plan Malraux was not within the ceiling for tax shelters. To optimize the tax benefit, you have to go for an operation in which the price of the works represents around a 40 to 50 % of the total cost. The real appreciation is taxable at the rate of 19 %, plus 15.5% of social taxes. But it is exempt at the end of twenty-two years (thirty years for the social security contributions).

The deficit is deducted for some of the programs

The operations Malraux for which an application for a building permit or a statement of work was filed before 31 December 2008 can benefit from the old tax deduction on the total income of the whole of the deficits in land caused by the renovation work. For the last of the programs benefitting from this regime, the finance bill 2016 has limited its application time. Only those expenditures made until December 31, 2017 will be subject to a deduction on the total income without limitation of the amount of the deficit of the land. With regard to loan interest, they are deductible from the income from land for ten years. Finally, the rental commitment is only six years old.

Where to buy ?

intermediaries and advisors in wealth management specialising in these products. For example : Canopy real Estate, Financial, Magellan, Kacius Invest, MMD Heritage, Thesaurus.

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Our advice 2017

This system still offers a real advantage, as it escapes the overall ceiling for tax shelters. Moreover, the goods offered are well-located and, therefore, likely to develop in time, even if the market suffers as a whole.