How to Report Crypto Income in France: Your 2024 Tax Guide

As cryptocurrency adoption grows in France, understanding how to report crypto income correctly is crucial to avoid penalties and stay compliant with French tax laws. Whether you’re trading Bitcoin, earning staking rewards, or receiving crypto payments, this guide breaks down everything you need to know about declaring digital assets to the French tax authorities.

Understanding Crypto Taxation in France

France treats cryptocurrency as movable property rather than currency. This means:

• Capital gains tax applies when you sell crypto at a profit
• Income tax applies to regular trading activities and certain crypto earnings
• Tax rates range from 0% to 45% based on your total income bracket

All residents must declare crypto transactions exceeding €305 in annual capital gains or €5,000 in disposal value. Non-compliance can lead to audits and fines up to 80% of owed taxes.

Types of Crypto Income and Tax Treatment

Different crypto activities trigger distinct tax obligations:

1. Capital Gains: Taxed when selling crypto for fiat or exchanging between cryptocurrencies. Flat 30% rate (12.8% income tax + 17.2% social charges) after €305 allowance.
2. Staking/Rewards: Treated as miscellaneous income. Taxed at your marginal rate (up to 45%) plus 17.2% social charges.
3. Mining Income: Considered non-commercial profits. Subject to income tax and social contributions.
4. Crypto-to-Goods Transactions: Taxable event equivalent to selling for fiat currency.

Step-by-Step Guide to Reporting Crypto Income

Follow these steps when filing your annual tax return:

1. Calculate Gains/Losses: For each transaction, determine:
   Sale Price – Purchase Price – Fees = Gain/Loss
2. Complete Form 2086: Attach this supplementary form to your main tax return (Form 2042). You’ll need:
   • Dates and values of all acquisitions/disposals
   • Wallet addresses and exchange records
   • Proof of mining/staking activities
3. Apply the €305 Allowance: Deduct this from your total annual capital gains before calculating tax.
4. Report on Schedule 2042 C PRO: Include income from mining, staking, or professional trading here.
5. File by Deadline: Submit electronically via impots.gouv.fr by late May/early June annually.

Common Crypto Tax Mistakes to Avoid

Steer clear of these frequent errors:

• Ignoring small transactions: Even minor swaps between tokens are taxable events
• Forgetting cost basis: Always track acquisition costs including transaction fees
• Mixing personal and business wallets: Keep clear separation for accurate reporting
• Overlooking airdrops/hard forks: These count as taxable income at fair market value

FAQs: Reporting Crypto in France

Q: Do I pay tax if I hold crypto without selling?
A: No – taxation only applies upon disposal, mining rewards, or staking income.

Q: How is crypto taxed for non-residents?
A: Non-residents pay 30% flat tax on French-sourced crypto income only.

Q: Can I offset losses against gains?
A: Yes – net losses can be carried forward for up to 10 years against future crypto gains.

Q: Are NFT sales taxable?
A: Yes – same capital gains rules apply as for other cryptocurrencies.

Q: What records must I keep?
A: Maintain transaction histories, wallet statements, and exchange reports for 6 years.

Always consult a conseiller fiscal (tax advisor) specializing in crypto for complex situations. With proper reporting, you can navigate France’s crypto tax landscape confidently while avoiding costly penalties.