Crypto Tax Rates in France

Holding and using crypto can bring many advantages to investors: flexibility, independence, and access to global markets. Unfortunately, that’s not the case for investors in France.

Under the Direction Générale des Finances Publiques (DGFiP), France has one of the most rigid and complex tax systems for digital assets. 

The framework is highly subjective and often punitive, taxing investors in ways that discourage them from using crypto altogether. These complexities are a big reason France's crypto tax rates usually feel punitive compared to other EU regimes.

In France, almost every action involving crypto is a taxable event, from selling and trading to even paying for goods or services. This guide breaks down how the French tax authority views crypto, how much you might owe, and why the system remains one of the toughest in Europe for digital asset holders.

Is Crypto Taxed In France?

Yes, unfortunately, crypto is taxed in France, and the system can feel painfully complicated.

Under the Direction Générale des Finances Publiques (DGFiP), crypto is classified as a digital asset, or actif numérique. What makes the system so confusing is that it’s subjective: your tax rate depends entirely on how the authorities classify your activity.

If they see you as an occasional investor, your crypto gains fall under the capital gains tax system. That means a 30% flat rate, known as the Prélèvement Forfaitaire Unique (PFU), applied every time you dispose of crypto. Disposal means converting crypto to euros, using it to buy goods or services, or paying someone in crypto.

But if they decide you look more like a professional trader, things get tougher. In that case, your gains are treated as business income, not capital gains. You’re taxed under the BIC regime (Bénéfices Industriels et Commerciaux), which uses progressive income tax rates that can reach up to 45%, plus social contributions.

There’s no clear numerical line between being an occasional investor and a professional one; it’s based on how “systematic” your trading looks. If you trade daily, use professional tools, or have clients, you could be reclassified and end up paying a lot more.

To make things worse, mining is always treated as a professional activity because it counts as income from providing computing power. And when you sell your mined crypto later, you’re taxed again, this time under capital gains tax.

So yes, in France, you pay tax when you buy, when you sell, and sometimes even when you breathe near your crypto.

How Is Crypto Taxed In France?

Crypto is taxed in France in several ways, depending on how the Direction Générale des Finances Publiques (DGFiP) classifies your activity. For individuals, the system distinguishes between occasional investors and professional traders, a difference that’s highly subjective and often confusing.

If you are considered an occasional trader, your gains fall under the capital gains tax regime. France applies a 30% flat rate (the Prélèvement Forfaitaire Unique, or PFU) on realized profits. You only pay when you dispose of your crypto,  that means converting it to euros, exchanging it for goods or services, or paying someone in crypto.

Your gain is calculated using a proportional formula:

Taxable Gain = Sale Price – Proportional Acquisition Cost

This mechanism matters for paying tax on crypto in France, because the average cost and proportional allocation drive your final liability.

Because most investors make multiple purchases over time, France calculates tax based on the average purchase cost of your total holdings relative to the portion you sold.

If, however, the tax authority sees your activity as more systematic, you trade frequently, rely on trading tools, or generate income from crypto-related services, you may be classified as a professional trader. In that case, your profits are treated as business income under the BIC regime (Bénéfices Industriels et Commerciaux), and you pay progressive income tax rates that can reach up to 45%, plus social contributions.

Mining and staking are also treated as professional activities, since they generate ongoing income. The rewards you earn are taxed as non-commercial income (BNC) when received, and when you later sell the mined or staked tokens, you pay capital gains tax again on the difference in value.

In short, France taxes crypto both as an asset and as a source of income, depending on how often and how professionally you use it, and that makes compliance a complex process for even the most diligent investors.

Can The DGFiP Track Crypto?

Yes, unfortunately, the DGFiP can track your crypto with surprising precision.

France is part of the Crypto-Asset Reporting Framework (CARF), an international initiative that allows tax authorities to automatically share financial data across borders. Under this framework, centralized exchanges are required to report user data, including balances and transaction histories.

In practice, this means that platforms like Binance France, Coinbase, or Kraken must share information with the French tax administration, which can then cross-check it against your declared income.

Beyond CARF, France also participates in the OECD’s Common Reporting Standard (CRS) and the EU’s DAC8 directive, which further expand the government’s ability to monitor digital asset activity within the European Union.

So yes, if you trade or hold crypto through a regulated exchange, the DGFiP can see it. And because your classification as an “occasional” or “professional” trader is subjective, that same information can determine how much you’re taxed and under which regime.

In short: anonymity and crypto don’t coexist under French tax law.

Is Any Crypto Tax Free In France?

Not really, almost all crypto activity in France is taxable.

The only exception is a small annual exemption: if your total realized gains from selling or spending crypto during the year are below €305, you don’t owe any tax. Once you cross that threshold, every euro of gain becomes taxable under the capital gains regime.

Aside from that, there are no broad tax-free categories. Whether you sell, trade, or use your crypto to pay for something, France treats it as a taxable disposal.

There are, however, a few non-taxable scenarios worth noting:

-Transferring crypto between your own wallets, no disposal, no tax.

-Buying crypto with euros, acquiring it isn’t a taxable event.

-Holding crypto long-term without selling, unrealized gains aren’t taxed until disposal.

But in general, yes. France taxes almost everything related to crypto. The system leaves very little breathing room for casual investors.

When Do I Pay Crypto Tax In France?

You pay crypto tax in France at the same time as your regular income tax, during the annual spring declaration period.

There isn’t a separate schedule for crypto; you simply include your crypto gains in your yearly tax return using the official forms. However, what really matters isn’t the date but the accuracy of what you report.

Because France’s crypto tax system is complex and classification can change depending on your trading habits, it’s highly recommended to consult a professional tax advisor familiar with digital assets. A specialist can help ensure that your gains are calculated correctly and that you don’t overpay, or worse, underreport and face penalties later.

In short: crypto taxes follow the same calendar as other taxes in France, but getting the numbers right is the real challenge.

Is There Any Tax On Stolen Or Lost Crypto In France?

No, you don’t pay tax on crypto that has been stolen or lost, because there’s no disposal or realized gain. If your assets disappear due to hacking, exchange failure, or loss of private keys, you’re not taxed on them.

However, and this is the frustrating part, you can’t usually deduct those losses from your taxable gains either. The French tax system only recognizes losses that occur during a taxable transaction, such as selling crypto below its purchase price.

Losses from theft, scams, or lost access are not considered deductible because they don’t result from a sale or exchange. Even if you can prove that your funds were stolen (for example, through an exchange report or police statement), the DGFiP typically won’t allow you to offset that loss against your gains.

In summary, if you lose your cryptocurrency, you don’t owe taxes, but you also can’t use that loss to lower your tax bill. In France, tax on cryptocurrency arises only from disposals or recognized income events.

How Much Tax Do You Pay On Crypto In France?

That depends, and, as we’ve said before, it’s completely subjective.

In theory, France applies a flat 30% tax (Prélèvement Forfaitaire Unique, or PFU) on crypto capital gains for individual investors. This rate combines 12.8% income tax and 17.2% social contributions.

However, if the tax administration considers you a professional trader, you lose that flat rate. Instead, your profits are taxed as business income under the BIC regime (Bénéfices Industriels et Commerciaux), where rates are progressive, up to 45%, plus social charges.

In practice, this means that if you’re an active crypto user, trading often, using professional tools, or earning income from mining or staking, you’re likely to be treated as a professional and taxed at a higher rate.

Because this classification is subjective and the stakes are high, it’s always best to consult a certified tax professional who understands both French law and crypto accounting. It can make the difference between paying the fair amount and paying far more than you should.

How Do You Report Crypto Tax In France?

You report your crypto taxes directly through the French tax administration’s website,  the same place where you file your regular income or capital gains tax.

To stay compliant, you must complete a few specific forms:

-Form 2086: used to declare your capital gains or losses from digital assets.

-Form 3916-bis: used to declare any foreign crypto accounts or wallets held on non-French platforms (like Binance, Coinbase, or Kraken).

-Form 2042: your main income tax return, where you include totals from the previous forms.

Before you file, it’s essential to keep complete records of all your crypto transactions, purchase prices, sale values, transfer dates, and exchange fees. Having a clear transaction history makes it easier to calculate your gains correctly and avoid costly errors.

Because of how complex France’s system can be, the safest approach is to work with a tax professional familiar with crypto accounting. A certified accountant can ensure your declaration matches what the DGFiP expects and help you minimize your tax exposure legally.

Report everything through the tax website, keep meticulous records, and get expert help. It’s the best way to stay safe in one of Europe’s strictest tax environments.

How Are Specific Crypto Transactions Taxed?

In France, crypto transactions can be taxed in two main ways, as income or as capital gains, and the reasoning behind which applies is, once again, subjective.

You pay income tax when you receive crypto as part of an economic activity, such as:

-Payment for professional services

-Mining or staking rewards

-Freelance work paid in crypto

You pay capital gains tax when you dispose of crypto, meaning:

-Selling it for euros or another fiat currency

-Exchanging it for goods or services

-Using it to pay someone else

Each of these actions triggers a taxable event because the DGFiP considers that you have realized a gain in value. In other words, even if you simply use crypto to pay for something, you owe tax on the increase in its value since you acquired it.

As a result, many investors say the French system discourages using crypto altogether. It treats digital assets as speculative instruments rather than functional currencies, making everyday use expensive and bureaucratically risky.

Final Thoughts

The French crypto tax system is, without a doubt, frustrating for investors. It’s built in a way that discourages you from acquiring or using crypto altogether. Every action, from trading and staking to simply paying for something in digital assets, can trigger a taxable event.

In practice, this means that even responsible investors can face heavy administrative and financial burdens just for participating in the crypto economy. In many cases, it’s easier and safer to operate in euros than to receive, hold, or use crypto under the current tax structure.

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