CGA LMNP: Should You Join an Approved Management Centre?

Until the 2025 Finance Act, furnished rental property owners (LMNP) under the real tax regime could join an Approved Management Centre (CGA LMNP) to benefit from a personal income tax (IR) reduction. Since February 2025, however, Article 199 quater B of the French General Tax Code (CGI) has been abolished, ending this tax reduction.

So, what does this mean for landlords using the LMNP regime? Should you still join a CGA LMNP?

The Role of CGA LMNP After the 2025 Finance Act

The 2025 Finance Act eliminated the tax reduction previously granted under BIC (Industrial and Commercial Profits) for personal income tax (IR).
Additionally, the preventive tax function of CGAs has been redefined, limiting their ability to provide enhanced protection against tax audits.

➡️ Until the end of 2024, if you were paying income tax and not in joint ownership, CGA LMNP membership offered a clear financial advantage.
➡️ As of 2025, joining a CGA LMNP no longer provides a direct tax benefit.

How to Cancel Your CGA LMNP Membership

If you already received your 2025 membership invoice:

• Do not pay it. Contact your bank immediately to block the payment if needed.

• Send a cancellation request via letter or email, clearly stating your membership number (found on CGA invoices).

For guidance, you can use a standard CGA LMNP cancellation template.

Reducing Accounting Costs: Consider Digital Solutions

Even without the CGA LMNP tax reduction, you can reduce accounting expenses using LMNP-specific software.
Online tools developed by professional accountants allow you to file your tax return independently and fully complyvia your official impots.gouv.fr account.

Discover tools such as LMNP accounting software Solo, which simplifies tax filing and bookkeeping for furnished rental landlords.

Does it Change the Attractiveness of Furnished Rentals?

Many landlords wonder whether the removal of CGA LMNP tax reduction affects the financial appeal of furnished rentals.

The main advantage of LMNP remains: the ability to deduct expenses and depreciation from taxable rental income. Even without the CGA LMNP reduction, accounting and administrative fees remain deductible, reducing your taxable base.

Remember:

• All rental-related expenses (maintenance, insurance, property management) are deductible.

• The purchase price of your property can also be depreciated through LMNP accounting mechanisms.

Therefore, the removal of the CGA LMNP tax benefit does not significantly impact the decision to invest in furnished rentals.

For a detailed analysis of your situation, use an LMNP tax simulator to calculate the precise impact on your taxation.

Also read: Why join a CGA LMNP?

Need to Optimize Your LMNP Tax Strategy?

Even without the CGA LMNP reduction, there are ways to maximize tax efficiency for furnished rentals.
Tax advisors can guide you through accounting and declaration strategies, helping reduce your tax burden—book a free consultation to understand your options.

Who Could Join a CGA LMNP Before 2025?

Previously, to access CGA LMNP benefits, landlords needed to:

• Have revenue below Micro-BIC thresholds;

• Be a French tax resident;

• Not be in joint ownership with someone from another tax household.

(In Micro-BIC, the maximum income for furnished rentals was €77,700.)

Main Advantages of It’s Membership

In 2024, It’s members benefited from:

• A tax reduction covering two-thirds of accounting fees, capped at €915 per year.

Until the end of 2022, membership also offered a non-increase of taxable income, gradually phased out under the 2021 Finance Act.

Originally, membership had to be completed by December 31 of the tax year. From May 2024, joining anytime before the end of the accounting year became acceptable.

Example of CGA LMNP Tax Reduction

By joining a CGA LMNP in 2024, you could automatically reduce your income tax by €333, representing two-thirds of accounting and membership expenses, within the €915 cap.

What is It?

A Centre de Gestion Agréé (CGA LMNP) provides financial guidance to small business owners and landlords, helping them analyze their economic situation and manage risk.
CGA LMNPs hold information sessions and provide reports, but do not manage accounting or tax filings.

Until 2024, CGA LMNP membership reduced audit risk, which is no longer the case.

Phase-Out of the Taxable Income Increase for Non-Members

Previously, non-members of CGAs or AGAs faced an increase in taxable income. This penalty was gradually reduced under the 2021 Finance Act:

Key Takeaways

• Before 2025: CGA LMNP membership offered a significant tax advantage.

• After 2025: No direct tax reduction is available, making membership optional.

• Still beneficial: Deductibility of accounting fees and depreciation under LMNP.

Furnished rental investments remain attractive with deductible expenses and depreciation, especially when combined with LMNP accounting software and expert guidance.