Loc'Avantages: rental intermediation, rates from 20 to 65% %

The Loc'Avantages tax reduction rate depends on two things: the rent level you accept and whether or not you use a rental intermediary. For direct rentals, the rate is 15% (intermediate rent) or 35% (social rent). With a rental intermediary, it is 20%, 40%, or 65% (very low-income rent). The very low-income level is only available with an intermediary.

This page covers rates, their calculation basis, the conditions of the commitment, and the process for challenging it. It does not address rent ceilings per municipality, the relevant sections of the tax return, the situation of taxpayers not domiciled in France, or the exact level of energy performance required: these points should be verified before making a decision.

What it is

Loc'Avantages, formerly known as "Louer Affordable" (Affordable Rental), is a tax reduction for landlords who rent their property at below-market rates. It is provided for in Article 199 tricies of the French General Tax Code (CGI), established by Law No. 2021-1900 of December 30, 2021.

You sign an agreement with Anah. The rental commitment is for a minimum of six years.

Law No. 2025-127 of February 14, 2025 (Article 88) extended the scheme for three years. Applications for the agreement must be registered between March 1, 2022, and December 31, 2027. If the application was submitted before March 1, 2022, the previous "Affordable Rental" scheme applies, with a deduction of rental income.

The rate schedule

The rates are those published in the BOFiP (BOI-IR-RICI-400-30, paragraph 70, version of March 6, 2025) and on the economie.gouv.fr website dated August 26, 2026. Rent ceilings are defined by municipality or district. The rate depends on the rent level stipulated in the Anah agreement and whether or not an intermediary is used.

The BOFiP specifies the basis: the reduction is calculated on the amount of gross income from the subsidized housing.

Intermediation fees

For Loc2 and Loc3 levels with rental intermediation, economie.gouv.fr mentions a bonus of €1,000 for rentals or subletting through an intermediary, and €2,000 for management mandates. This bonus is increased by €1,000 if the property is 40 m² or less. These bonuses are not tax reductions and are therefore not included in the numerical example below.

What does "rental intermediation" mean?«

The BOFiP describes it as follows: "the relationship between the landlord and the tenant is regulated by the intervention of a social third party". Two modalities exist.

• Renting from an approved organization. You rent the unfurnished accommodation to an approved public or private organization, which sublets it or uses it for accommodation. The lease is between you and the organization.
• The management mandate to an approved social real estate agency. The agency manages the property and puts you in touch with a tenant. The lease is concluded directly between the tenant and you.

In both cases, the occupant is a person referred to in II of Article L. 301-1 of the Construction and Housing Code, or a person whose situation requires a transitional rental solution.

Conditions to be met during the commitment

• Unfurnished rental, tenant's primary residence. The accommodation is occupied as a main residence for at least eight months per year.
• A tenant whose income is below the legal limit. These rent caps apply to each rent level. The lease must be signed with an individual other than yourself, a member of your tax household, or one of your ascendants or descendants, unless that person already occupied the property.
• An effective rental agreement. In the event of termination of the lease, the property must be re-let without delay. If the property remains un-let for more than twelve months after the termination notice is received, the tax benefit will be revoked.
• A timely application. If the first lease predates the application for an agreement, the latter must be filed no later than two months.

How is the reduction allocated?

The reduction is applied to income tax calculated according to the standard tax scale, after the tax discount and before any tax credits. It cannot be applied to taxes levied at a flat rate. Any unused balance cannot be carried forward to subsequent years and is non-refundable.

Loc'Avantages is affected by the overall cap on tax breaks: it appears in the BOFiP table of benefits subject to the €10,000 cap. Service-public.fr confirms this.

It cannot be combined, for the same property, with Duflot, Pinel, Denormandie, or the former Cosse tax deduction. It can be combined with Malraux.

If the accommodation is jointly owned

• In a company not subject to corporation tax, the benefit of each partner is limited to their share of the gross income.
• In joint ownership, each co-owner is limited to their share.
• In the event of split of ownership, only the usufructuary benefits from the reduction.

The questioning

Failure to comply with the commitment or rental conditions increases the tax liability by the amount of the reduction obtained. Specifically targeted are: renting to a tenant whose income exceeds the limits, exceeding the rent ceiling, owner occupancy of the property, excessively long rental interruptions, and sale of the property during the commitment period.

The recapture takes place no later than December 31 of the third year following the event. No recapture is made if the event results, for the taxpayer or one of the members of a couple subject to joint taxation, from a 2nd or 3rd category disability, dismissal or retirement initiated by the employer, or death.

In the event of a sale for consideration, the buyer does not benefit from the reduction for the remaining term of the agreement. To benefit from it, they must enter into a new agreement with the Anah.

Numerical example (fictitious profile)

Situation. Hélène owns an apartment with a market rent of €1,000 per month, or €12,000 per year. Her income tax, after tax deductions, is €2,800 (assummary). She is examining the five combinations in the table. The rents are assumed to comply with the municipality's rent ceilings, which the profile does not meet.

Issue. What reduction does each combination produce, and what portion can be applied to one's tax?

Strategy. For each floor, the rent is reduced to the level stipulated in the agreement (15 %, 30 %, or 45 % below market rate). The reduction is calculated on the annual gross rents at the rate specified in the scale. The eligible portion cannot exceed €2,800 in tax.

Result.

A higher tax rate results in a lower rent. With a tax of €2,800, the portion of the tax reduction exceeding this amount is lost: €1,490 in the case of very low-income housing. The table does not take into account brokerage fees, any intermediary fees, or the landlord's expenses.

This profile is fictitious and the assumptions (market rent, taxes) are its own. The figures illustrate the calculation. They do not predict your situation.

What changes depending on your situation

• The amount of your income tax, which limits the attributable share.
• The permitted rent level in your municipality, which determines the rents that are actually possible.
• The type of accommodation and its condition, especially if work is required.
• The method of detention : directly, in a company, in joint ownership or divided ownership.
• Your detention horizon, because a transfer during the commitment period results in a resumption.
• Your tax domicile : the rule depends on your situation, check before deciding.

No results are promised.