Introduction
As cryptocurrency adoption surges in France, understanding tax obligations is crucial for investors. The French tax authority, Direction Générale des Finances Publiques (DGFiP), treats crypto as movable property, meaning capital gains from sales or exchanges trigger taxes. This guide breaks down France’s crypto capital gains tax rate, calculation methods, reporting rules, and exemptions—helping you stay compliant while optimizing your investments.
How Cryptocurrency Taxation Works in France
France categorizes crypto assets as biens meubles (movable property) rather than currency. This means:
- Capital gains from selling or trading crypto are taxed separately from income.
- Flat Tax (PFU) applies: A 30% rate combines 12.8% income tax and 17.2% social contributions.
- Professional traders face different rules—frequent, high-volume trading may classify as professional income, taxed at progressive rates up to 45% plus social charges.
France’s Crypto Capital Gains Tax Rate Explained
For individual investors, crypto profits fall under the Prélèvement Forfaitaire Unique (PFU) flat tax system:
- Standard Rate: 30% on net gains (12.8% income tax + 17.2% social contributions).
- €305 Exemption: If total annual gains from movable assets (including crypto) are ≤€305, no tax is due.
- Tax-Free Threshold: Applies per household, not per transaction. Gains exceeding €305 are fully taxed.
Example: If you earn €1,000 in crypto gains:
Taxable Amount = €1,000 – €305 = €695
Tax Due = €695 × 30% = €208.50
Calculating Your Crypto Capital Gains
Net gain = Sale price – (Acquisition cost + Associated fees). Follow these steps:
- Identify Costs: Include purchase price, transaction fees, and hardware/software expenses.
- Use FIFO Method: France defaults to “First-In, First-Out” for cost basis. The oldest assets sold first.
- Track in Euros: Convert all crypto values to EUR using exchange rates at transaction time.
Tip: Tools like Koinly or Accointing automate calculations and generate French tax reports.
Reporting and Paying Crypto Taxes in France
Declare gains annually via Form 2086, attached to your income tax return:
- Deadline: Typically late May/early June for the prior tax year.
- Payment: Settle taxes when submitting your declaration. Late filings incur 10% penalties.
- Record-Keeping: Maintain transaction logs for 6 years, including dates, amounts, and wallet addresses.
Special Cases: Losses, Exemptions, and Professional Trading
- Loss Offset: Net losses can be carried forward 10 years to reduce future gains.
- Small Gains Exemption: The €305 threshold exempts minor traders—ideal for casual investors.
- Professional Status: If trading is “habitual” (e.g., daily trades or primary income source), gains are taxed as Bénéfices Non Commerciaux (BNC) under progressive income tax (up to 45%) plus social charges (~17.2%).
FAQ: Crypto Tax Rate France Capital Gains
Q: What is the crypto tax rate in France for 2024?
A: 30% flat tax (PFU) for individuals—12.8% income tax + 17.2% social contributions—unless gains are under €305.
Q: Are crypto-to-crypto trades taxable?
A: Yes. Exchanging one crypto for another (e.g., BTC to ETH) is a taxable event. Gains are calculated based on EUR value at trade time.
Q: How do I declare crypto losses in France?
A: Report net losses on Form 2086. They roll over for 10 years to offset future capital gains.
Q: Is staking or mining income taxed?
A: Yes. Rewards are taxed as capital gains upon disposal. Mining may qualify as professional activity if done commercially.
Q: Can I reduce my crypto tax legally?
A: Strategically time sales to use the €305 exemption, harvest losses, or hold long-term (no reduced rates apply). Consult a French tax advisor for personalized planning.
Conclusion
France’s 30% crypto capital gains tax offers simplicity for investors, with exemptions for small earners. Stay compliant by tracking transactions meticulously, declaring gains via Form 2086, and leveraging loss carryforwards. As regulations evolve, always verify rules with the DGFiP or a tax professional to avoid penalties.
