In France, cryptocurrency taxation in 2025 is based on established rules that primarily target capital gains realized when converting digital assets into fiat currencies (such as the euro) or when using them to acquire goods or services. Here are the key details currently known:
1. Capital Gains Taxation:
* General Principle: Profits made on cryptocurrency sales by individuals are taxable. A taxable sale occurs when you sell your cryptocurrencies for euros or another fiat currency, or when you use them directly to purchase a good or service.
* Tax Rate: Capital gains are generally subject to the Single Flat-Rate Withholding Tax (PFU), also known as the "flat tax," at an overall rate of 30%. This rate is made up of 12.8% income tax and 17.2% social security contributions.
* Option for the Progressive Scale: Taxpayers have the option to have their capital gains taxed on the progressive income tax scale. This option may be advantageous if your Marginal Tax Bracket (MTB) is less than 12.8%. If you opt for the progressive scale, the 17.2% social security contributions apply in addition.
* Exemption Threshold: Cryptocurrency sales are tax-exempt if the total amount of your sales in the year is less than or equal to €305.
2. Non-Taxable Operations at the Time of the Transaction:
* Crypto-for-Crypto Exchanges: Exchanging one cryptocurrency for another (including stablecoins) is not considered a taxable event in France. Tax is only due when exiting the crypto ecosystem into a fiat currency or good/service.
* Transfers between Wallets: Simply transferring cryptocurrencies between different wallets that you own is not a taxable transaction.
3. Tax Declaration:
* Two Main Forms: The declaration of income related to cryptocurrencies is mainly done via two forms:
* Form 3916-BIS: This form is used to report digital asset accounts opened, held, used, or closed abroad (on exchanges not based in France). This obligation applies even if the account is empty, as long as it was active during the tax year. Non-custodial wallets (for which you hold the private keys, such as Ledger or Metamask) generally do not need to be reported via this form.
* Form 2086: This form is for reporting capital gains or losses on taxable digital asset sales made during the year. Each taxable sale must be detailed, with the calculation of the corresponding capital gain or loss.
* 2025 Declaration Dates (2024 Income): The income declaration campaign (including crypto income for 2024) generally takes place in the spring. Filing deadlines vary depending on your department of residence, with the online declaration service opening around mid-April and deadlines ranging from late May to early June 2025 for online declarations, and an earlier date for paper declarations.
4. Special Cases:
* Mining: Income from mining is generally taxed under the Non-Commercial Profits (NCP) category. Taxation occurs upon receipt of the tokens, based on their value in euros at the time of receipt.
* Crypto Staking and Lending: Income generated by staking or lending cryptocurrencies is also taxable, generally in the BNC category.
* NFTs: NFT taxation broadly follows that of other digital assets. Capital gains realized when selling an NFT for fiat currency are taxable. Trading NFTs for cryptocurrencies is not taxable at the time of exchange.
* Professional Activity: If the cryptocurrency trading activity is considered habitual and carried out on a professional basis, the gains are then taxed according to the Industrial and Commercial Profits (BIC) or Non-Commercial Profits (BNC) regime, with specific accounting obligations and tax rates potentially different from the flat tax for occasional individuals.
5. Recent or Upcoming Notable Changes:
* The European MiCA (Markets in Crypto-Assets) regulation, which will come into effect by the end of 2024 for most of its provisions, aims to harmonize the regulatory framework for crypto-assets within the European Union. Although it primarily concerns crypto issuers and service providers, it could have indirect implications for taxation in the long term, notably by improving the traceability of transactions for national tax administrations.
* There has been talk of a possible increase in the overall tax rate for the highest crypto capital gains (above a certain threshold of overall income) for transactions carried out from 2025, potentially bringing it to 37%. However, the precise details and application of this measure are to be confirmed in the final legislative texts for the relevant tax year.
It's crucial to keep accurate records of all your crypto transactions (purchases, sales, exchanges, receipts) so you can accurately calculate your capital gains or losses and file your tax returns. If in doubt, it's recommended to consult a tax professional specializing in cryptocurrencies.
