The COSSE tax incentive

A specific deduction is available for income obtained from certain property rentals regardless of the date of acquisition of the property.

This new tax incentive, known as the “Cosse” incentive replaced the previous “Besson” and Borloo” incentives as of January 1st 2017 for National Housing Agency (ANAH) agreed property.

A reduction of between 15% to 85% is possible, depending on the geographical area, the level of rent set up and the way the property is managed (management mandate by a social housing agency or sublease rental).

The request for this tax benefit must be made when filing income tax return for the first year applicable. Certain supporting documents must be provided with the tax return, such as the rental agreement and a copy of the tenant’s tax return for the previous year.