Crypto Taxation in France: A Complete Guide

Public adoption of Bitcoin, Ethereum, and other digital assets, is increasing in France, making it an important one for cryptocurrency investors. As the market evolves, understanding the tax treatment for these assets becomes crucial. France also clearly gives the guidelines both in terms of flat rate of tax as well as doling out exemptions from taxes for the smaller investors. The main authority that supervises crypto taxes is the Direction Générale des Finances Publiques (DGFiP). Understanding your tax obligations can help to avoid penalties, stay compliant, and assist in the best way to plan your finances when it comes to France’s ever-changing crypto space.

Tax Authorities & Regulations

The DGFiP is responsible for enforcing crypto tax rules in France. Crypto assets fall under Article 150 VH bis of the French General Tax Code, primarily governed by updates from the 2019 Finance Act. Cryptocurrencies are classified as moveable assets, like stocks or bonds, and not as legal currency. France also aligns with EU regulations, and new directives such as DAC8 will enhance transaction reporting from 2025 onward. These changes aim to support compliance and close tax gaps in digital asset activity.

Types of Crypto Taxes in France

• Capital Gains Tax (CGT): Applies when crypto is sold or exchanged for fiat currency like euros.
• Income Tax: Imposed on earnings from mining, staking, airdrops, or salaries paid in crypto.
• Value-Added Tax (VAT): Usually not applicable to crypto trading, but may apply to business services involving crypto.
• Other Taxes: Crypto may be subject to inheritance or wealth taxes under existing national tax frameworks.

Tax Rates & Brackets

Occasional investors:

• 30% flat tax (12.8% income tax + 17.2% social security contributions).
• Exempt if annual crypto gains are under €305.

Professional traders (BIC regime):

• Taxed progressively up to 45% based on income brackets.

Mining/Staking (BNC regime):

• 0% on income ≤ €11,294
• 11% on €11,295–€28,797
• 30% on €28,798–€82,341
• 41% on €82,342–€177,106
• 45% on income over €177,106

Micro-BNC scheme:

• For turnover < €77,700, only 66% of income is taxed after a 34% allowance.
  

Crypto Transactions & Tax Treatment

• Buying crypto: Not taxable; acquisition price should be recorded.
• Selling crypto for fiat: Taxable as capital gains.
• Mining and staking:
  • Mining was taxed as income under the BNC regime.\
  • Staking not taxed until converted to fiat.
    
• Crypto received as salary/payment: Taxed as income when received.
• Crypto-to-crypto trades: Not taxable until converted to fiat.
• DeFi lending/yield farming: Taxable only when gains are realized in fiat.
• NFT transactions: Taxable when sold for fiat; treated similarly to crypto assets.

Crypto Tax Reporting & Compliance

All crypto transactions must be reported, even if gains fall below the €305 exemption.
Taxpayers must submit:

• Form 2042: Main income tax return
• Form 2086: For reporting crypto capital gains and losses
• Form 3916-bis: To declare foreign digital asset accounts
• Record-keeping is mandatory for 5 years, including EUR valuations, transaction logs, and wallet addresses. 
• Deadlines: Tax returns for 2024 income are due between May 22 and June 5, 2025, depending on the taxpayer’s department.
• Penalties for non-compliance include substantial fines or imprisonment.

Tax Deductions & Exemptions

Crypto losses can offset same-year crypto gains but cannot be carried forward to future years. Trading fees may be deducted from capital gains to reduce taxable amounts. Occasional investors may choose progressive income tax rates instead of the flat 30% if more favorable. For small investors, gains under €305 annually are tax-exempt, providing relief for minimal or casual crypto activity.

Enforcement & Penalties for Non-Compliance

The DGFiP uses blockchain analysis and data from domestic and international exchanges to monitor transactions. With DAC8 implementation in 2025, reporting will be stricter as crypto platforms will be required to submit transaction data directly.
Failure to comply can lead to:

• Fines of up to €10,000 per unreported account
• Administrative penalties ranging from €750 to €1,500 per account
• Up to 5 years imprisonment for proven tax evasion
• Increased audits and investigations for missing or inaccurate reports
• Given these risks, full disclosure and proper record-keeping are strongly advised.

Future of Crypto Taxation in France

While France is not the only country to be trying to enact MiCA, it is attempting to join the European Union in adopting this new framework, which is slated to be fully enforced by December 2025. At the same time, this regulation seeks to harmonize EU crypto reporting and oversight. France intends to shorten compliance processes and strengthen the rules for promoting blockchain innovation, which could mean good news for compliant businesses and investors down the line.

Conclusion

France’s crypto tax structure is simple, both for occasional investors, who pay a flat 30% tax and for professionals, who are taxed progressively. It is free to make gains below €305, and crypto to crypto transactions are generally not taxed until they are converted to fiat. But compliance is necessary due to strict reporting requirements and hefty penalties. As regulations change, investors and businesses are recommended to maintain complete records and consult with tax professionals to ensure they are on the right track and avoid legal problems.

Frequently Asked Question (FAQs)

1. Is cryptocurrency legal in France?

Crypto is legal and it falls under the national tax code amongst other regulations

2. Are crypto gains taxed?

Yes, at a 30% flat rate for occasional investors or up to 45% for professionals.

3. How is mining taxed?

Mining is taxed as income under the BNC regime with progressive rates.

4. Can I deduct crypto losses?

Yes, losses can offset same-year gains but cannot be carried forward.

5. What tax forms are needed?

Form 2042, Form 2086, and Form 3916-bis (for foreign crypto accounts)