Tax Benefits for Renting Out Old Properties with the Cosse Scheme

The Cosse Scheme – Eligibility Conditions

To qualify for the Cosse scheme, the property must be located in an area where rental demand exceeds supply.
Municipalities with fewer than 50,000 inhabitants (known as zone C) are not eligible, except if you choose social intermediation, renting your property through an approved social housing intermediary.

You must also sign an agreement with the French National Housing Agency (Anah) and commit to renting your property for six years (or nine years if you receive Anah subsidies for renovation work).

In addition, you must comply with rent and tenant income caps, which vary according to:

• the location of the property,

• the type of rent (intermediate, social, or very social),

• and the number of people in the household.

Updated thresholds can be found on the National Housing Information Agency’s website (www.anil.org, section investment property).

A Tax Deduction of Up to 85% on Your Rental Income

If you meet the eligibility requirements, you can benefit from a tax deduction ranging from 15% to 85% on your rental income.
The percentage depends on the rental rate cap and location of your property.

👉 The maximum 85% deduction applies when you choose social intermediation, renting through an approved social real estate agency (AIVS) or a non-profit association that manages the property on behalf of the owner.

This option also offers greater security, as renting to an association rather than an individual reduces the risk of unpaid rent or vacancy periods.

A Financially Attractive and Secure Investment

According to studies carried out by French public authorities, the Cosse scheme is more profitable than renting at market rates in most cases due to its significant tax benefits.

You can further increase your financial return by combining the Cosse scheme with other real estate incentives such as:

• the Malraux Law (for renovation of historic buildings),

• or deducting property deficits from your overall taxable income.

This approach allows investors to optimize their rental income while supporting affordable housing initiatives in high-demand areas.