France taxes cryptocurrency under a regime that distinguishes between individual non-professional investors and professional investors, with the applicable rules having been substantially updated since 2023.
For individuals, capital gains arising from the disposal of crypto assets are generally subject to a flat tax rate of 30%, known as the Prelevement Forfaitaire Unique (PFU), which combines income tax and social security contributions.
The legal basis for this treatment is found in Article 150 VH bis of the General Tax Code (Code General des Impots, CGI), which came into force on 1 January 2023.
Professional investors, including frequent traders and miners, are subject to the BNC progressive scale without the option to elect flat-rate taxation, under Article 92 of the CGI. France is also among the 48 signatory countries to the OECD’s Crypto-Asset Reporting Framework (CARF), which entered into force in the EU on 1 January 2026, requiring crypto-asset service providers to report transaction data and user identities to the tax authorities for international exchange.
Capital Gains Tax Rules
Under Article 150 VH bis of the CGI, a taxable event arises each time a crypto asset is transferred in exchange for fiat currency, goods, or services. Exchanges between crypto assets are expressly excluded from taxation.
This means that a gain made on converting Bitcoin to Ether is not taxable at the time of the swap; the gain only crystallises when the Ether is eventually sold for euros or used to make a purchase. Gains are calculated on the net position across all members of the tax household, meaning losses on one disposal can be offset against gains on another within the same tax year.
How CGT is calculated
France uses a distinctive portfolio-wide calculation method rather than the asset-by-asset or FIFO methods used in many other countries.
For each disposal, the taxable gain is calculated using the following formula:
The sale price (after fees) minus the proportion of the taxpayer’s total cumulative acquisition costs that corresponds to the share of the total portfolio value being sold.
This requires the taxpayer to know their total portfolio value in euros at the time of each disposal, which in practice means tracking all holdings across all wallets and exchanges in real time.
Again, the formula can be expressed as:
Gain = Sale Price – ((Total Acquisition Costs minus Previously Allocated Costs) × (Sale Price divided by Portfolio Value at time of sale)).
The complexity of this calculation means that most French crypto taxpayers require dedicated software or professional assistance to compute their liability accurately. Losses from one disposal may be offset against gains from another in the same tax year; however, net losses cannot currently be carried forward to future years.
Record keeping
Taxpayers must retain records of every transaction, including the date, amount, exchange rate used for euro conversion, and the total portfolio value at the time of each disposal.
The €305 annual threshold for aggregate disposals should be monitored carefully; once total disposals in a year exceed this amount, all gains become taxable. Records should be retained for a minimum of three years, consistent with the general limitation period for tax assessments in France.
Income Tax Rules
Where a taxpayer’s crypto activities constitute a professional business rather than individual investment, the income is classified as benefices non commerciaux (BNC) and taxed under the progressive income tax scale, with no option to elect flat-rate treatment.
This classification applies to miners under Article 92 of the CGI, as well as to frequent traders whose activity is sufficiently regular and organised to be characterised as a commercial enterprise rather than personal investment.
The distinction between professional and individual investor status is determined by reference to the frequency of transactions, the professional nature of the activity, and the resources employed.
For professional investors and miners, the applicable income tax rates follow France’s progressive scale, with the marginal rate of income tax reaching 45% for the highest earners. Social security contributions of approximately 17.2% are also levied, meaning the maximum effective rate can reach approximately 60% of taxable income. Deductible expenses, including trading costs, software subscriptions, and hardware costs, may be claimed by professional traders to reduce the taxable profit, subject to the BNC rules on deductibility.
Crypto received as salary or payment for employment is treated as earned income and is subject to income tax and social charges at the time of receipt, with the value assessed at the fair market price in euros on the date of receipt.
Mining and Staking Treatment
Mining
Mining income in France is classified as professional income subject to the BNC progressive scale under Article 92 of the CGI.
The taxable amount is the market value of the mined cryptocurrency in euros at the time of receipt. Because mining is treated as a professional activity regardless of scale, there is no distinction in French law between hobby mining and commercial mining for income classification purposes; all PoW mining rewards are treated as BNC income.
Miners may deduct allowable expenses associated with their mining operation, including electricity costs, hardware depreciation, network costs, and other directly attributable overheads, subject to the BNC rules on expense deductibility.
When mined cryptocurrency is subsequently disposed of, the disposal is a taxable event subject to the general crypto capital gains rules under Article 150 VH bis, with the acquisition cost for CGT purposes being the value at which the crypto was originally recognised as income.
Staking
As of 2026, France has not issued explicit guidance distinguishing staking rewards from other forms of crypto income for tax purposes.
The general position is that staking rewards received by an individual investor are likely to be treated as capital income subject to the flat 30% PFU in the same manner as other crypto gains, though the precise characterisation depends on the nature of the staking arrangement. Where staking is conducted as part of a professional activity or at a scale that would characterise the taxpayer as a professional operator, the BNC classification may instead apply.
The absence of dedicated guidance on staking reflects a broader gap in French crypto tax law. Taxpayers receiving material staking rewards should seek professional advice to confirm the appropriate treatment. When staked crypto is later disposed of, the disposal triggers a taxable event under the standard portfolio gain rules, with the acquisition cost being the fair market value at the time the staking reward was received.
NFT Taxation
Non-fungible tokens are subject to French crypto tax rules where they function as an investment or speculative asset.
The disposal of an NFT for fiat currency or in exchange for goods or services constitutes a taxable event under Article 150 VH bis of the CGI, and gains are subject to the same 30% flat rate (or progressive BNC rate for professional activity) as other crypto disposals. The €305 annual threshold for aggregate disposals also applies to NFT transactions, and crypto-to-crypto exchanges including NFT-to-crypto swaps are not taxable.
Where an individual creates and sells NFTs commercially, the activity is more likely to be classified as professional income subject to the BNC progressive scale rather than the individual investor flat rate.
The distinction turns on the same criteria as for professional trading: the regularity and scale of the activity, the commercial infrastructure in place, and whether the activity is pursued as a source of income rather than personal investment.
Reporting Requirements
French taxpayers are required to declare their total crypto gains or losses for the tax year on their income tax return. The relevant declaration is made on Form 2086, which requires disclosure of each taxable disposal, including the date, sale price, acquisition cost, and portfolio value at the time of each transaction. This form feeds into the income tax return (Form 2042) and the calculated gain is subject to the flat 30% PFU or the progressive BNC rate, depending on the taxpayer’s status and elections.
All transactions must be valued in euros, and taxpayers must use the exchange rate applicable on the date of each transaction. Vague or approximate valuations are not acceptable, and the detailed portfolio calculation method required under French law means that comprehensive transaction records are essential. Taxpayers who hold crypto on foreign exchanges or in self-custodied wallets are required to declare the existence of those accounts on Form 3916 bis, even where no taxable disposal has occurred during the year.
Since 1 January 2026, crypto-asset service providers operating in France has become subject to mandatory transaction reporting requirements under the implementation of CARF and the EU’s DAC8 Directive, aligned with the Decree of 21 February 2025 that amends Article 1649 AC bis of the CGI. This will result in Vero receiving detailed data on user transactions and identities from exchanges, which will be cross-referenced against self-reported income. Users who fail to provide required tax and residency information to crypto-asset service providers after two reminders may have their transactions blocked within 60 days.
Penalties
Failure to declare crypto gains in France exposes taxpayers to the standard interest and penalty regime administered by the Direction Generale des Finances Publiques (DGFiP). Interest on underpaid tax accrues at a rate of 0.20% per month (2.4% per year) from the date the tax should have been paid. This interest is applied to the total tax shortfall and is charged in addition to any penalties.
Administrative penalties for late or inaccurate declarations are set at a minimum of 10% of the unpaid tax where the taxpayer has acted negligently, rising to 40% where there has been deliberate omission, and 80% where there has been fraudulent conduct or use of concealment mechanisms.
Wilful tax evasion can also result in criminal prosecution under French tax law, with potential custodial sentences for serious cases. The penalties for failure to declare foreign crypto accounts on Form 3916 bis are separate and can be significant, with a fixed penalty per undeclared account per year.
Taxpayers who have previously failed to comply with their obligations can approach the DGFiP through the voluntary regularisation process. Regularisation before a control is initiated generally results in reduced penalties, and the DGFiP has in recent years run dedicated initiatives encouraging crypto holders to bring their affairs into order.
As CARF and DAC8 data flows begin in 2026, the risk of detection for non-compliant taxpayers will increase substantially.
