Crypto Taxation in France

France operates a dedicated cryptocurrency-tax framework under Article 150 VH bis of the Code General des Impots (CGI), introduced by the Loi de Finances pour 2019. The framework distinguishes occasional private investors, who benefit from a flat-rate levy, from professional or habitual traders taxed under a separate income classification. The following sections describe the rules as they apply to individuals resident in France for tax purposes.

What rate applies when a private investor sells crypto for euros?

Occasional private investors who dispose of crypto-assets for fiat currency (including euros and other legal tender) or who use crypto to pay for goods and services realise a taxable event under Article 150 VH bis CGI [SC1]. The applicable levy is the Prelevement Forfaitaire Unique (PFU), which increased to 31.4% from 1 January 2026 under the Loi de Financement de la Securite Sociale (LFSS) 2026 [SC2]. The PFU comprises 12.8% income tax (impot sur le revenu) and 18.6% social levies (prelevements sociaux), the latter reflecting a rise in the Contribution Sociale Generalisee (CSG) from 9.2% to 10.6%. Taxpayers may elect the progressive income-tax scale under Article 200 A CGI if their marginal bracket makes it more favourable than the flat 12.8% component; the 18.6% social levies remain payable regardless of which option is chosen.

How is the net taxable gain calculated?

The DGFiP mandates a portfolio-level weighted-average cost-basis method (the PVCT formula) for determining gain on each disposal [SC1]:

Gain = Sale price - (Total acquisition cost x [Sale price / Total portfolio value at time of sale])

This proportional approach requires maintaining a running record of every acquisition cost across the entire portfolio, not merely the tokens being sold. Net losses may offset gains of the same category within the same tax year; no carryforward to subsequent years is permitted [SC4]. Annual disposal proceeds below EUR 305 attract no tax, but the threshold is measured against total proceeds (the sale price), not the net gain [SC1]. Exceeding EUR 305 in proceeds makes the full computed gain taxable; it is not a simple zero-bracket allowance.

Why is crypto-to-crypto exchange not taxable in France?

Article 150 VH bis II.A CGI provides that exchanges of crypto-assets for other crypto-assets -- including stablecoin conversions -- without fiat consideration do not constitute a taxable disposal in the year of exchange [SC1]. Tax is deferred until the crypto is ultimately converted to legal tender or used to pay for goods or services. An investor rotating between Bitcoin, Ether, and stablecoins within the digital-asset ecosystem does not crystallise a gain at each rotation. The accumulated cost basis carries forward and determines the taxable gain at eventual fiat conversion. This contrasts with the United Kingdom, United States, and Australia, all of which treat crypto-to-crypto swaps as taxable disposals. Complete acquisition-cost records across every swap are essential because the entire history feeds the eventual gain calculation.

When is a trader classified as a professional under BNC?

Following a DGFiP guidance update effective 2023, classification as a professional turns on whether the individual conducts transactions in professional-like conditions -- for example using algorithmic tools, high-frequency automated execution, or systematic arbitrage strategies -- rather than purely on trade volume or frequency [SC4]. Investors who manage their own private assets, even with many trades, generally remain within the occasional-investor PFU framework.

Professional traders are taxed under Benefices Non Commerciaux (BNC) -- a classification that replaced the earlier Benefices Industriels et Commerciaux (BIC) category that previously applied to crypto professionals [SC4]. Under BNC, net profits face progressive income-tax rates (up to 45%) plus social contributions. A simplified micro-BNC regime is available for gross annual receipts below EUR 77,700, providing a 34% standard deduction in lieu of actual expenses; the reel regime above that threshold allows deduction of verified actual costs. Mining and staking income is classified as BNC regardless of scale.

What are the annual filing and declaration obligations?

French resident taxpayers who realise taxable crypto disposals must file Form 2086 (Cerfa 2086) as an annex to their annual income-tax return [SC3]. Form 2086 captures each disposal: dates, sale prices, acquisition costs, and the computed gain or loss. The net gain flows through to Form 2042 C (or Form 2042 C-PRO for BNC income). Filing is online via impots.gouv.fr, with regional deadlines in May-June of the following year.

All taxpayers holding custodial accounts with foreign crypto-asset service providers (any platform domiciled outside France) must declare each account annually on Form 3916-bis, even if no transactions occurred [SC3]. Self-custody wallets do not require declaration. Failure to declare carries a penalty of EUR 750 per account per year (EUR 1,500 if the account balance exceeds EUR 50,000; EUR 10,000 for non-cooperative jurisdictions). The DAC8 Directive, transposed via the Loi de Finances pour 2024 and effective 1 January 2026, requires crypto-asset service providers to report user-level transaction data to DGFiP for automatic exchange across EU member states [SC5]. Transaction records must be retained for ten years under Article L 169 of the Livre des Procedures Fiscales.

For a broader view of the French tax framework, see the France country overview and the France capital gains tax page for the interaction between PFU and other capital-asset disposals. The rules described on this page are informational only; individual circumstances vary and a qualified tax professional registered with the Conseil National de l'Ordre des Experts-Comptables (CNOEC) or a licensed Conseil Fiscal should be consulted before making any filing or compliance decision.