Cryptocurrency Tax Guide France 2025

📌 Introduction

The Directorate General of Public Finances Ministry of Economy and Finance is France’s central tax authority. In France, cryptocurrencies are considered movable assets, with straightforward rules regarding taxable events and the tax rate.

France used to consider active and high-volume traders to be professionals, and subjected these traders to a progressive tax rate up to 45%. However, that changed in 2023, and now everyone is subject to the same flat tax rate of 30% on capital gains.

This guide covers everything a French taxpayer may need to know before reporting taxes on their crypto investing activity. It includes all types of taxable events, a breakdown of deadlines, income vs. capital gains taxes, and finally, a few tips and tricks for reducing your tax bill.

📅 Reporting and Deadlines

France follows the standard tax year, but there are different deadlines depending on how an individual decides to report (online vs paper).

Deadlines for online reporting are staggered based on the department number of your residence. Online reporting can be completed at impots.gouv.fr.

• Tax Year: January 1 to December 31.

• Filing Deadlines for The 2024 Tax Year:

  • Paper declarations (by mail or in person): May 20, 2025.

  • Online declarations:

    • Departments 01–19 & non-residents: May 22, 2025.

    • Departments 20–54: May 28, 2025.

    • Departments 55–976: June 5, 2025.

• French crypto users may need to file up to 4 distinct forms:

  • Form 2042-C: For non-commercial profits (e.g., mining income).

  • Form 2086: Declaration of capital gains from digital assets.

  • Form 3916-bis: Declaration of digital asset accounts held abroad.

  • Form 2042: General income declaration. (For people who receive their paycheck on the blockchain).

💼 Crypto Tax Basics

Taxable Transactions

• Selling Crypto: Selling crypto for fiat currency is a taxable event. Swapping one crypto for another is not taxable.

• Using Crypto for Purchases: Using crypto to pay for goods or services is considered a taxable disposal and is taxed in the same manner as selling crypto.

• Earning Crypto: Receiving crypto through mining, staking, or airdrops is taxable as income.

Non-Taxable Transactions

• Purchasing Crypto with Fiat: Buying crypto with euros or other fiat currencies is not taxable.

• Swapping Crypto Tokens: Trading one crypto token for another is NOT considered a taxable event in France. 

• Transferring Between Wallets: Moving crypto between wallets you own is not taxable.

• Small Gifts: Gifts below certain thresholds may be exempt, but it's essential to consult specific gift tax rules.

Deducting Losses

• Offsetting Gains: Capital losses can offset capital gains from crypto sales.

• Carryforward Rules: Unused losses can be carried forward for up to 10 years.

Key Allowances and Thresholds

• Personal Use Exemption: Capital gains below €305 per year are exempt from tax.

• Tax-Free Income Thresholds: Income tax rates are progressive, with the first €10,777 of income being tax-free.

💸 Income Tax Brackets

France's income tax system is progressive:

These rates apply to income, including crypto-related earnings classified as non-commercial profits.

📈 Capital Gains Tax on Crypto

There is no distinction between long-term and short-term capital gains in France. Crypto traders who realize gains pay a flat rate of 30% on their total profits over €305, regardless of how long the asset was held.

Calculation Method

• Net Profits: Calculate the difference between the sale price and the purchase price.

• Deduct the €305 Exemption: The first €305 of cap gains is tax-free.

• Apply Flat Tax: A 30% flat tax applies to gains for all investors.

💰 Income Tax on Crypto

France no longer taxes professional traders at their income tax rate, but some crypto transactions are still classified as income. Income earned through crypto is taxed alongside each individual’s total net income for the year.

Taxable Income Sources

• Mining and Staking Rewards: Taxed as non-commercial profits (BNC).

• Rewards From DeFi Activity (Providing Liquidity, Yield Farming): Also classified under BNC.

• Airdrops: Considered taxable income at the time of receipt.

• Payments Received for Goods or Services: Taxed as income based on the fair market value at the time of the transaction.

Calculation Method

• Valuation: The fair market value of the tokens at the time they were received.

• Expenses: Deduct any related expenses. Expenses can include gas/transaction fees, electricity bills for a mining business, and any other expense paid in connection with earned income.

• Apply Marginal Tax Rates: Taxed according to the progressive income tax brackets (above).

🔍 Tax Treatment of Specific Crypto Transactions

Mining and Staking

• Income Reporting: Report the value of rewards as income when received.

• Capital Gains: Once sold, any gains are subject to capital gains tax.

Airdrops and Hard Forks

• Airdrops: Taxed as income at the time of receipt.

• Hard Forks: New coins received are taxed as income based on their value at the time of the fork.

NFTs

• Sales: Profits from selling NFTs are subject to capital gains tax.

• Creation/Sales by Artists: Income from creating and selling NFTs is taxed as professional income.

DeFi Activities

• Earnings: Interest or rewards from DeFi platforms are taxed as income.

• Token Sales: Selling tokens acquired through DeFi activities may result in capital gains tax.

Lost or Stolen Crypto

• Tax Treatment: Currently, France does not provide specific tax relief for lost or stolen crypto assets. Stolen tokens are considered to have been disposed of, and are taxed accordingly.

Gifting and Inheritance

• Gifts: Crypto received as a gift is not subject to tax in France. If the recipient later sells the gifted tokens and realizes a profit, the profit is subject to capital gains tax.

• Inheritance: Crypto assets are included in the estate and subject to inheritance tax.

🧾 Using Crypto Tax Software

It is highly recommended for most traders to use crypto tax software like Awaken. Crypto tax software significantly reduces the complexity of filing taxes in France by reading your blockchain activity, labeling your transactions, and calculating everything under the hood.

• Benefits: Simplifies tracking, calculating, and reporting crypto transactions.

• Features to Look For:

  • Integration with your exchanges and wallets.

  • Accurate calculation of gains/losses.

  • Generation of French tax forms (e.g., Form 2086).

• Compatibility: Ensure the software supports French tax regulations.

• Support Resources: Access to customer support and educational materials.

💡 Reducing Crypto Taxes Legally in France

• Tax Loss Harvesting: Offset gains with losses to reduce taxable income.

• Long-Term Holding: While France doesn't differentiate between short and long-term gains, holding may align with personal investment strategies.

• Utilize Allowances: Take advantage of the €305 exemption for small gains.

• Professional Advice: Consult tax professionals for personalized strategies.

For a more detailed breakdown of strategies to reduce crypto taxes, please read our full guide here.

✅ Conclusion

France does not have the most crypto-friendly tax laws, but the laws are at least clear and easy to follow. French crypto traders must be sure to keep accurate records of their transaction history. Accurate reporting ensures compliance and allows users to pay the minimum necessary amount.

Further Guidance: Visit impots.gouv.fr or consult a tax professional for more information.