How to Report NFT Profit in France: Complete Tax Guide 2024

Understanding NFT Taxation in France

Non-Fungible Tokens (NFTs) are considered taxable assets under French law. The Direction Générale des Finances Publiques (DGFiP) treats profits from NFT sales as capital gains, requiring mandatory declaration. Whether you’re an occasional seller or professional trader, all earnings must be reported through France’s annual income tax return system. Failure to comply can trigger audits and penalties.

Calculating Your NFT Profit Accurately

Your taxable profit equals the sale price minus acquisition costs and eligible expenses. Use this formula:

• Profit = Sale Price – (Acquisition Cost + Platform Fees + Creation Expenses)

Deductible expenses include:

• Gas fees and blockchain transaction costs
• Marketplace commissions (e.g., OpenSea, Rarible)
• Digital wallet maintenance fees
• Costs for creating the NFT (if you’re the original artist)
• Advertising expenses directly linked to the sale

Step-by-Step Reporting Process

1. Gather Documentation: Collect transaction histories, wallet addresses, purchase/sale receipts, and expense records.
2. Calculate Net Profit: Apply the formula above using euro values at transaction dates (convert crypto values using historical exchange rates).
3. Complete Form 2086: Report profits under “Plus-values de cession de biens meubles” (capital gains on movable property) in Section 3.
4. Declare on impots.gouv.fr: File electronically via your personal tax account before the annual deadline (typically early June).
5. Pay Applicable Taxes: Flat 30% tax applies (12.8% income tax + 17.2% social contributions) unless you qualify for the micro-BIC regime under €77,700 annual revenue.

Deadlines and Penalties

NFT profits must be declared annually by the standard income tax deadline (usually June 1-8, depending on department). Late submissions incur:

• 10% penalty for up to 30 days delay
• 40% penalty after 30 days
• Potential criminal charges for deliberate tax evasion
• Interest accrual at 0.2% monthly on unpaid amounts

Retain records for six years as DGFiP may audit crypto transactions retrospectively.

Frequently Asked Questions

Are NFT losses deductible in France?

Yes, capital losses can offset gains from similar assets within the same tax year. Unused losses carry forward for ten years against future NFT profits.

Do I pay tax if I sell NFTs for cryptocurrency?

Absolutely. The euro value of crypto received at the time of sale determines your taxable profit. Subsequent crypto-to-fiat conversions are separate taxable events.

How does France tax NFT staking rewards?

Staking rewards qualify as miscellaneous income taxed at up to 45% plus social charges. Declare them under “Revenus des créances, dépôts et cautionnements” on Form 2042C.

What if I gifted an NFT?

Gifts exceeding €100,000 to non-relatives may incur gift tax. Family transfers follow progressive rates from 5% to 45% after €100,000 allowances.