Understanding Crypto Taxation in France
As cryptocurrency adoption grows in France, understanding tax obligations is crucial. The French tax authority (DGFiP) treats crypto assets as movable property, meaning profits from crypto activities are subject to taxation. Whether you’re trading Bitcoin, earning staking rewards, or receiving NFT airdrops, this guide breaks down exactly how to comply with French crypto tax laws and avoid penalties.
Taxable Crypto Events Under French Law
You must report these crypto-related activities to French tax authorities:
- Crypto-to-fiat conversions: Selling Bitcoin, Ethereum, or other cryptocurrencies for euros
- Crypto-to-crypto trades: Exchanging one digital asset for another (e.g., ETH for SOL)
- Goods/services purchases: Using crypto to buy products or pay for services
- Staking rewards: Income from proof-of-stake validation activities
- Mining proceeds: Rewards from cryptocurrency mining operations
- Airdrops & forks: Free token distributions or blockchain splits
Non-taxable events include buying crypto with fiat currency, holding assets long-term, and transferring between your own wallets.
Calculating Your Crypto Tax Liability
France uses the acquisition cost method for calculating gains:
- Determine disposal value (sale price or market value at time of transaction)
- Subtract original acquisition cost plus any allowable fees
- The difference is your taxable gain
Example: If you bought 1 ETH for €1,500 and later sold it for €2,800 (with €20 transaction fee), your taxable gain is €2,780 – €1,500 = €1,280.
Important: For frequent traders, France allows the global gain method – calculating net gains/losses across all transactions annually.
French Crypto Tax Rates for 2024
Tax treatment depends on your trading frequency:
- Occasional traders (non-professional):
Flat tax rate of 30% (12.8% income tax + 17.2% social contributions) - Professional traders (regular/commercial activity):
Taxed under progressive income tax rates (up to 45%) plus 17.2% social contributions
Note: The €305 general capital gains exemption doesn’t apply to crypto assets. Mining/staking income is taxed as non-commercial profits under the 30% flat rate.
Reporting Deadlines and Procedures
French crypto investors must declare gains using specific tax forms:
- Form 2086: For capital gains from crypto disposals
- Form 2042 C: For mining, staking, and other crypto income
Key deadlines:
• May 2025: Online declaration for 2024 income
• June 2025: Paper declaration deadline
• September 2025: Tax payment due date
All declarations must be submitted via impots.gouv.fr. Maintain detailed records including transaction dates, amounts, wallet addresses, and exchange statements.
Penalties for Non-Compliance
Failure to properly declare crypto income triggers severe consequences:
- 10% penalty for late filing (plus 5% monthly interest)
- 40% fine for unreported income discovered by authorities
- 80% penalty for fraudulent declarations
- Criminal charges for tax evasion exceeding €50,000
The DGFiP actively tracks crypto transactions through international data-sharing agreements like the OECD’s Common Reporting Standard (CRS).
Smart Compliance Strategies
Protect yourself with these expert tips:
- Use crypto tax software (e.g., Koinly or Accointing) to automate calculations
- Retain complete transaction history for 6 years
- Separate personal and trading wallets for clearer accounting
- Consult a conseiller fiscal (tax advisor) specializing in crypto
- Consider regulated French platforms like Société Générale’s Forge for institutional-grade reporting
Frequently Asked Questions
Q: Do I pay tax if I transfer crypto between my own wallets?
A: No – transfers between wallets you control aren’t taxable events.
Q: How is DeFi yield farming taxed?
A: Rewards are treated as miscellaneous income subject to 30% flat tax when converted to fiat or used.
Q: Are NFT sales taxable?
A: Yes – profits from NFT sales follow the same capital gains rules as other crypto assets.
Q: Can I offset crypto losses?
A: Yes! Capital losses reduce taxable gains and can be carried forward 10 years.
Q: What if I use a foreign exchange?
A: You still must declare gains to French authorities. Non-EU platforms must report French user data under DAC8 regulations.
Q: Is there a minimum threshold before taxes apply?
A: No – all crypto gains are taxable regardless of amount, unlike some traditional investments.
