Castles, manors, religious buildings, but also buildings and mansions ... France has more than 43,000 buildings classified or listed as historical monuments with regard to their particular interest. Although the municipalities have the majority, there are nearly 35% of private owners.
Typical profile of a squire
While it is clear that buying a mansion is not within everyone's reach, it is possible to find happiness for less than a million euros. Especially since the majority of these properties are buildings divided into apartments and accessible for a few hundred thousand euros. It is also necessary to then be able to assume the maintenance costs and charges. Count at the very least nearly 30,000 euros per year for a medium-sized castle, and up to more than 150,000 euros for the most imposing buildings requiring the employment of personnel. Not surprisingly, this type of acquisition is therefore reserved for people with high incomes, generally taxed at 41 or 45%. A niche market that would still attract several hundred buyers each year, according to sector specialists.
Moreover, one should not believe that owning a historic monument is particularly profitable. Apart from family assets passed down from generation to generation, it is enthusiasts of old stones attracted by the prestige and history of the place who turn to this kind of investment. As attractive as it is, the tax system applying here is in fact aimed above all at limiting the deficit of the owners.
A tax carrot in the key
It is the law of December 31, 1913 on historical monuments which is at the origin of the exceptional exemption regime still in force today. When the owner derives income from his property through opening to the public (at least 40 days in summer or 50 days per year) or rental (3 years minimum), he can deduct 100% of the charges related to the work of 'maintenance and restoration of its property income, as well as interest on loans linked to the acquisition. And if it does not generate any revenue, some expenses will still be deductible from overall income.
A considerable tax exemption for highly taxed people. The other side of the coin is that the law has required since 2009 that individuals keep the property for fifteen years.
A facilitated succession
In order to allow ancestral families to continue to preserve French heritage, while allowing as many people as possible to benefit from it, the State has provided for an attractive regime in terms of the transmission of historic monuments. Whether you inherit this property as part of an inheritance or through a donation made during the lifetime of its owner, you can in fact be 100% exempt from the payment of duties.
To do this, you must sign an agreement with the Ministry of Culture which commits you to keep the listed building and to open it to the public under certain conditions.
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- Succession
- Monument
- Castle
- Taxation
- Works
- Heritage