I Fiscal advantages, case by case

 
Fiscal advantages vary, depending on whether the building produces revenue, and on whether its owner inhabits it. Actually, it would be best to differentiate three possible cases. 

A- The building produces revenue but the owner does not occupy it
(the building is fully or partially rented and generates additional revenue, for instance with visitation fees).
If the building generates locative revenue, all of the charges can be imputed to the general revenue. In the case of a deficit, it will be imputable without limitation on the global revenue of the owner. If the building generates secondary revenue (paying visits for instance), this revenue is subjected to common regulations, after subtraction of charges such as paying the cashier and guide personnel, as well as the fixed deduction. On the final amount of this revenue, the owners can, without specific justification, withdraw a second fised deduction of 1,524.49 € is the monument has neither park nor garden and 2,286.74 € if it has either.

 
B- The building produces no taxable revenue (this is the case when the building is inhabited by its owner and/or it is open to visitors free of charge)
Whether the monument is open to visitors or not, whether its owner inhabits it or not, the property generates no revenue. In this case, specific charges regarding it are deductible from the general revenue. This applies to all of the participation to the strict up-keeping of the building paid to the local cultural administration as well as participation to renovation made by the latter; the full cost of renovation or repair work minus, as the case may be, the state’s financial participation. All the other financial charges that fall under the regimen of common regulation are also deductible to a certain extend from the general revenue. Loan interests are also deductible but for a varying portion, depending on whether the building is open to visitors or not. The deduction is of 100 % if the building is open to visitors, 50 % if it is not.
The fiscal administration considers that a building is open to the public as long as the monument can be visited:
- at least 50 days a year, 25 of which (Sundays and holidays included) have to be between April and September;
- or 40 days from July to September.

C- The building produces taxable revenue but is also inhabited by the owner (a building that is open to the public with an entry fee for instance).
This is the case, for instance, of an owner who inhabits part of the building and rents the rest of it or who keeps the building for himself in its entirety but perceives additional revenue from paying visitors. In this case, charges that regard the part of the building devoted to the owner’s personal use are fully imputable to the global revenue.
The other charges, for visitation rights or partial occupancy, are taken into account when calculating the net revenue. If there is a deficit, it is fully imputable on the global revenue. Note that if the building is open to visitors, the Administration admits that the fraction corresponding to the opening is of 75% of total charges. The 25% that directly go to the owner are directly deducted from the global revenue. 
 
 
II Common advantages
 
A- Succession rights exonerated
 
Another fiscal perk: exoneration of succession rights, even if the heir is not a member of the deceased’s family. This exoneration is conditioned by the receiver’s signing of a convention of undetermined length with the Ministry of Culture and Finances. It determines the designation of the property or of the part of the building that is under the protection of Historical Monuments, enumerated mobile and immobile constitutive elements that are to be subjected to the exoneration. Lastly, this convention indicates all the obligations the new owners will have to their property: maintaining the decorative elements mentioned in the convention; specific means of up keeping the building; publicising information on visiting access and times.
To benefit from the exoneration, the building has to be open for visits at least 100 days per year, including Sundays and holidays, from April to October included, 80 of which have to be from June to September.
We now need to discuss the special case of buildings owned by family SCI. Since January 1st 1995, exoneration of succession rights has been extended to historical monuments owner-d by means of a family SCI (Real-estate civil societies). But the revenue of the society have to be taxed as revenue of the shareholders. The society has to be made either of family members in a direct line or by brothers and sisters, their spouses and children as the case may be. Shares must remain the property of these people. 
Beware! Letting a new associate who doesn’t have the required family bond into the society will automatically break the exoneration regimen. The civil society must own the property in its entirety, keep the historical monuments in proper condition, as well as the furniture if so required. It can own other property, but exoneration parts will only correspond to those of the historical monuments. Lastly it has to conclude a convention with the ministries of Culture and Finance and the next owner, to which the heir will have to conform. 
Furthermore, the exoneration can only take place if the donor or deceased had held his parts gratuitously for at least two years prior to the transmission, if it was an acquisition or paying subscription, and for at least five years if the transmission had previously been exonerated.
 
B- The situation seen by the ISF
 
When it comes to taxing wealth, agents are advised to be benevolent in their assessment of the value of the property.
 
III Declarative Obligations
 
Proof of classification or inscription is mandatory to benefit from this preferential regimen. It has to be added to the declaration. It is also advisable to join to declaration 2044 all the bills justifying operative deductions, in case of deficit. 
 
IV  Specific regimen: buildings that are part of national patrimony 
 
Up till now, the owners of buildings belonging to national patrimony because of the label delivered by the Fondation du Patrimoine benefited from the fiscal special treatment applied to historical monuments and such: deduction from the global revenue, in certain cases, of the charges they caused. One condition was however required: these owners had to first obtain a fiscal agreement. Article 45 of the law of restrictive finances suppresses, for 2002 the fiscal agreement owners of building given the label of the Fondation du Patrimoine needed up till now to benefit from the fiscal advantages that come with this type of property.
By Me Gabriel Neu-Janicki