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Understanding the taxation of cryptocurrency in France: how to declare and pay your taxes on cryptocurrencies?
The taxation of crypto money in France is based on a fairly precise tax system which may surprise when you have bitcoin, ethereum Ethereum any other digital active. The tax administration imposes clear rules to declare and calculate its earnings. The essential point is to identify the moment when added value is considered to be achieved. The form of taxation then depends on your status (occasional or professional individual). Let us discover in detail the formalities to fill out your declarations, the regimes available and the methods useful to simplify these approaches.
Table of contents
Definition of the taxation of cryptocurrencies in France
France considers cryptocurrencies as digital assets within the meaning of article 150 VH bis of the general tax code . Bitcoin , ethereum Ethereum stablecoin stablecoin , and most of the fungible tokens in this notion Transactions are therefore observed from the angle of Crypto taxation when you sell or use your tokens to buy goods and services. As long as there is no conversion to Euro or payment of a product with these cryptos, there is no immediate taxation.
Why the crypto and crypto crypto distinction in Fiat is crucial
The rule is clear: if you exchange bitcoin for Ethereum Ethereum crypto to crypto), no tax is triggered. On the other hand, any conversion to Euro (Fiat) or in purchase of services (for example paying a BTC ) potentially leads to taxable capital gain. portfolio holders to seek optimization strategies, especially through stablecoin s to defer taxation.
The exemption threshold at 305 euros
The law specifies that if your annual overall sales do not exceed € 305, you are not taxation. This threshold encompasses the total of your transfers. If you sell for 300 € in the year, you will not be taxed (but will still have to postpone the amounts in your declaration). Beyond € 305, all gains are taxable from the first euro in capital gain.
The various tax regimes: flat tax or progressive scale
Today, the vast majority of individuals fall under the “ flat tax ” (unique flat -rate levy of 30 %). Since January 2023, it is however possible to opt for the progressive scale of income tax. The two options are described in the official texts of the tax administration (see Official Bulletin Bofip ).
The single flat -rate levy (PFU)
The PFU, often called flat tax , amounts to 30 %. He understands:
12.8 % income tax;
17.2 % of social security contributions.
This taxation is direct, simple, and applies to the global added value of the year. Be careful, if you have made capital losses, they are only derived from the capital gains of the same year. It is therefore impossible to postpone a crypto value to the following years, unlike what exists for other financial products.
The progressive income tax scale
Since January 1 , 2023, you have the opportunity to declare your cryptocurrency earnings in the progressive scale . This choice can be judicious if your marginal tax rate is relatively low. However, as soon as you exceed certain slices, the progressive scale can lead to higher taxation than flat tax . Before opting for this regime, it is therefore strongly advised to simulate the final amount taking into account your other income.
How to determine the taxable capital gain on cryptocurrencies?
The French system requires a specific calculation. It is not based on the principle of the “first entry, first outing” (FIFO), nor on the average purchase per unit (as some foreign taxations do). Here, we calculate a quotient based on the overall value of your portfolio before the sale and the share of euros that you recover. The method, detailed in Bofip , is described as follows:
Plus-value of an assignment = amount of the transfer-[Total price of acquisition of the portfolio × (amount of the transfer ÷ Global value of the portfolio just before the sale)]]
If your cryptocurrencies are numerous (several exchanges , various tokens, or multiple operations), this calculation can quickly become a puzzle. You must know with precision:
The total acquisition price of your cryptos (including transaction costs);
The overall value of all your crypto positions just before the sale, including those on different wallets or on decentralized exchanges .
Practical example of calculation
Suppose you have invested € 5,000 in total to buy various cryptocurrencies. At a time T, your wallet is worth € 8,000 (before the sale). You decide to sell for € 2,000 (in euros). The calculation becomes:
Immo-Value taxable value = 2,000-[5,000 × (2,000 ÷ 8,000)] = 2,000-[5,000 × 0.25] = 2,000-1,250 = € 750
Your taxable profit is € 750. With flat tax at 30 %, you owe € 225 taxes ( 12.8 % IR + 17.2 % social security contributions).
Crypto money taxation France: administrative procedures and essential forms
Valuation of capital gains: Form 2086
For the tax period of the current year (N), the declaration was made the following year (N+1). You must inform your different capital gains and losses in the 2086 form . This makes it possible to detail each operation subject to taxation. Then, postponement on form 2042 C (box 3an or 3bn) is automatically carried out if you declare online. Take the time to check the reports to avoid any error.
Capital losses
Values are only compensable with the gains of the same year . If you do not have enough capital gains to cancel your losses, you will not be able to postpone these losses to the following years. This is an important point to know to calculate the risk on each trade.
Declaration of foreign accounts: Form 3916
If you use a exchange like Coinbase , Bitvavo, Kraken , or any other service provider outside France, you must fill out form 3916 during your declaration.
This obligation aims to communicate to the taxman the contact details of your account abroad. We mention in particular:
The service provider (or pre -recorded PSAN code);
The account number or email address used when opening.
Forgetting to do this process can lead to fines (€ 750 minimum per unconvinced account, up to € 1,500 if the market value of the account exceeds € 50,000 at a given time of the year, according to Bofip).
Crypto money taxation France: Occasional investor status vs. professional investor
Definition of private wealth management
Most cryptocurrency holders carry out a limited number of transactions and fall under the regime applicable to the management of private wealth . The main regime remains article 150 VH bis and leads to flat tax or progressive scale . Even a high volume of transactions is not enough, in principle, to switch to “professional” diet. trading frequency , committed amounts, special tools, possible organization of the quasi-professional type, etc.).
Case of professional activity
In 2022 and before, the regime imposed was that of BIC (industrial and commercial profits) for a trader considered professional. Since 2023, we favor the BNC (non -commercial profits) if operations are carried out under conditions similar to a usual activity but that does not constitute the heart of a commercial enterprise. To switch within the professional framework, the indices are taken on a case -by -case basis: use of trading algorithms, advanced knowledge, substantial and constant income from this activity, etc.
Special features of crypto currency taxation in France: mining, staking, nft, defi
Mining (minor activity)
Bitcoin ingredient creates tokens as a reward for the computing power invested. The taxman considers that this is an activity generating professional income (BNC). At the time of reception, you must assess the value of the extracted crypto and declare it as a taxable income. Then, if you later resell these tokens for a higher amount, this new gain enters the mechanics of capital gains on digital active ingredients.
Staking
Staking staking locking cryptos to secure a blockchain network and receive rewards. Several fiscalists believe that this income should be declared in BNC in theory as soon as you perceive tokens. Others envisage taxation only when resale, considering entry as an asset obtained free of charge. In any case, if you make a profit, it must be integrated into your final value of added value. To lift any doubt, it is better to get closer to a specialized tax lawyer .
Non-FUNGIBLE TOKENS (NFT)
The diet applied to NFT depends mainly on their nature. If they are assimilated to “digital active ingredients” (simple fungible or non -fungible token in standard use), they follow the same rules as Bitcoin or Ethereum . On the other hand, if the NFT is similar to a work of art or a furniture property, the tax calculation may differ. This is a sensitive point which generally requires in -depth technical and legal expertise.
Decentralized finance (DEFI)
Lending , loan, the use of liquidity pools on decentralized exchanges (DEX) are all complex mechanisms. France has not published a specific article of law which would cover each form of deffi . Administrative tools apply the general rule: if you get crypto income, it is a taxable income. If you exchange a token for another, it is neutral for the moment, unless the taxation requires the transaction. In the event of purchase of a product or service, the capital gain is crystallized. When in doubt, the ideal is once again to solicit specialized advice.
Crypto money taxation France: Synchronization and automatic calculation tools of earnings
Calculate latent added value or average purchase price over hundreds of transactions can be time consuming. Specialized software makes it possible to aggregate data from your accounts and wallets in order to simplify the final calculation.
Among the existing solutions:
Waltio : recognized tool, it synchronizes with different Exchanges , collects your transaction history and offers you a pre -filled 2086 form.
Koinly : similar, it deals with a wide range of blockchains, calculates your capital gains according to the French method and generates a report.
Cryptotaxcalculator : solution acclaimed internationally, with the management of multiple platforms and a clear interface.
These software greatly facilitates the declaration by limiting the risk of errors. You import your transactions, the tool applies the administration formula, then gives you a quantified tax balance. Before submitting, always check the consistency of the amounts, especially if you have carried out unusual transactions (bridge from one blockchain to another, Airdrop received, etc.).
Crypto money taxation France: donations, successions and donation rights in crypto
The donation of digital assets is considered to be a classic donation. The recipient must therefore possibly pay transfer rights, as if he received a sum of money. The usual family offices (€ 100,000 every 15 years in direct line) apply. Subsequently, if the person who received the donation sells, the acquisition price is calculated on the date of receipt of the donation. If you are preparing an important heritage passage, it is better to get closer to a notary or a tax advisor.
Crypto money taxation France: What do we risk in the event of non-declaration?
The tax administration has access to more and more data: agreements with exchange platforms, cross -account questions of bank accounts, etc. Do not declare your cryptocurrency capital gains can lead to a recovery, even the application of increases (up to 80 % in the event of proven fraud). foreign accounts either (form 3916). Fines can climb to € 750 or € 1,500 per unorganized account when the thresholds are exceeded.
Crypto money taxation France: special cases and optimization strategies
Exchange for stablecoin s
Some investors prefer to limit their exposure by selling their cryptocurrencies against stablecoin S ( USDT , USDC , etc.), indexed to a Fiat currency. This type of Crypto-to-Crypto is neutral in terms of tax as long as these stablecoin remain in your wallet. The interest is to freeze your earnings without a capital gain tax. Subsequently, any resale in euros or dollars will trigger the tax.
The choice of tax system
If you are in a low slice of the progressive scale, consider the scale option can be more advantageous. If on the contrary your TMI (marginal tax rate) is high, flat tax at 30 % is often preferable. There is no universal rule: a simulator or a calculation tool is useful to test each diet before checking the adequate box in the 2086 or 2042 C form.
Irreversible losses
Unlike other schemes (for example for listed actions), the capital loss of Crypto is “lost” if it exceeds the sum of your earnings of the same year. It is therefore not possible to postpone it to the following year.
Crypto money taxation France: Reminder on the concept of home and tax residence
In France, the tax administration is based on your tax residence to determine if you are taxable. If you live more than 183 days in the territory, or your center of economic interests is in France, you are subject to the rules of taxation on crypto money in France . Cryptos stored abroad by a French resident also fall under French taxation, with the annual declaration of declaration (form 3916).
Crypto money taxation France: some practical advice for a serene declaration
1. Hold a detailed register of transactions
Ideally, note each purchase, resale, transfer of wallet to wallet, crypto expenses for goods, etc. Keeping an encrypted trace of the transaction costs , the date and the purchase price is essential. We are aware that in the case of someone performing a lot of transactions, it is not very realistic. This is why it is advisable in this case to use software like Waltio , Koinly or Cryptotaxcalculator .
2. Make regular screenshots
You must know the overall value of the wallet just before selling. When you manage several accounts or wallets , carry out a “snapshot” (screenshot or export CSV) before the transfer allows the value to be freezed. Thus, the calculation imposed by the administration is faster and less subject to approximations.
3. Do not rush on conversions in euros
Crypto to Fiat exchange triggers the tax. It may be prudent to keep certain gains in the form of a stablecoin s if you hesitate at the right time to repatriate your funds in Euro. However, be aware of the risk of even minimal “volatility” on stablecoin s, the solidity of the transmitter, and any costs linked to it.
4.
This article is not legal advice. We are not a tax lawyer. For any doubts about the application of legislation to your personal situation, it is strongly recommended to contact a tax lawyer specializing in cryptocurrency . The information presented is mainly based on the research carried out with the AMF and administration publications (BOFIP). Each case that can reserve specificities, it is better to ensure the accuracy of your declarations.
Crypto money taxation France: risks of tax audit and importance of transparency
Tax control may cryptocurrency capital gains . With the growing popularity of Ethereum , Ethereum and other assets, the State is more vigilant about these operations. The platforms based in France are already required to collect and transmit a certain number of information. Foreign exchanges can also provide data if international agreements exist. regulations , in particular through MiCA Astets Regulation), tends to standardize this transparency.
In case of forgetting or fraud
Penalties can range from the simple fixed fine to 40 % increases (or 80 % in the event of fraudulent maneuvers). Delay interest is 0.2 % per month. If you spontaneously regularize an error, these interests can be reduced by half thanks to the right to error, as long as you are in good faith.
Crypto currency taxation in France and future prospects
The French legislator and the European Union seek to clarify as much as possible the Crypto Currency France taxation and to create simple tags for the administration. The recent MiCA (applicable at the end of 2024 for the general provisions, and mid-2024 for the stablecoin s) marks a stage of harmonization on a European scale. We can expect the rules on the imputation of capital losses , BNC taxation for professional activities or the treatment of NFTs are still specified in the coming years.
Quick comparison with other European countries
In Germany, capital gains on cryptocurrencies are exempt if the tokens have been held for over a year.
In Portugal, the regime is evolving. It was once very attractive (no taxation), but the country has introduced new rules to tax capital gains.
In France, the flat tax of 30 % simplifies the calculation, but the method of calculating the global cost price remains a complex point.
Conclusion The taxation of crypto currency in France
Crypto currency taxation in France may seem difficult at first, but good organization avoids most of the problems. Knowing the exact moment of the generating event (sale in euros, purchase of a good in cryptos), fill out form 2086 to declare its capital gains , and form 3916 for its accounts abroad, are among the administrative formalities . The implementation of rigorous personal accounts (with screen copies and use of specialized software type Waltio , Koinly or Cryptotaxcalculator ) also reduces the stress of the declaration.
Do not forget to check whether the progressive scale suits you better than flat tax , taking into account all of your income and your tax household . And in the event of doubts on a specific point (taxation of staking , mining, deffi , etc.), recover a tax lawyer specializing in crypto currency for tailor -made support.
With the rapid development of the sector, keeping informed of legislative innovations remains imperative. The official publications of the AMF constitute a reliable source to verify the legal points and avoid any difference which could lead to an tax audit . The transparency and precision of your declarations remain the best protection to fully enjoy your cryptocurrencies and blockchain in all serenity.
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Yohan Uzzan
Training engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future ahead of it, I participate in its democratization by developing Crypternon.
