Understanding Crypto Taxation in France
In France, cryptocurrency transactions are subject to taxation under specific regulations set by the Direction Générale des Finances Publiques (DGFiP). Whether you’re trading Bitcoin, earning staking rewards, or receiving NFTs, you must declare all crypto-related income. Failure to report can result in penalties up to 80% of owed taxes plus interest. France categorizes crypto earnings into distinct taxable events, each with unique reporting rules outlined in Article 150 VH bis of the Tax Code.
Types of Crypto Income and Tax Treatment
1. Capital Gains: Profits from selling crypto are taxed at a flat 30% rate (12.8% income tax + 17.2% social contributions). Exemption applies if total gains are under €305 per year.
2. Mining & Staking Rewards: Treated as non-commercial profits (BNC), taxed at progressive income tax rates (up to 45%) plus 17.2% social charges.
3. Airdrops & Hard Forks: Valued at market price upon receipt and taxed as miscellaneous income at 60% of the flat tax rate.
4. Crypto-to-Crypto Trades: Each exchange is a taxable event. Calculate gains in euros using acquisition cost and fair market value.
Step-by-Step Reporting Process
- Calculate Your Gains: Use FIFO (First-In-First-Out) method for cost basis. Track:
- Acquisition date and price
- Disposal date and value
- Transaction fees
- Complete Tax Forms:
- Form 2086 for capital gains
- Form 2042 C PRO for professional mining/staking income
- Annexe 3916-BIS for declaring foreign crypto accounts
- Submit by Deadline: File online via impots.gouv.fr before May-June (exact date varies annually).
Essential Record-Keeping Practices
Maintain these documents for 6 years:
- Exchange transaction histories
- Wallet addresses and private keys documentation
- Proof of acquisition costs (receipts, bank statements)
- Calculations for capital gains/losses
- Records of airdrops, forks, and staking rewards
Critical Mistakes to Avoid
- Ignoring Small Transactions: Even €1 gains require reporting
- Using Wrong Valuation Method: Always convert crypto values to euros at transaction time
- Forgetting Foreign Accounts: Failure to declare non-French exchanges triggers €1,500+ fines
- Mixing Personal & Business: Keep separate wallets for professional activities
Frequently Asked Questions (FAQ)
Q: Do I pay tax if I hold crypto without selling?
A: No tax applies for holding. Taxation occurs only upon disposal, mining rewards, or receiving airdrops.
Q: How are losses handled?
A: Capital losses can offset gains in the same year. Unused losses carry forward 10 years. Mining/staking losses aren’t deductible.
Q: What if I used a foreign exchange?
A: You must declare foreign accounts via Annexe 3916-BIS by March 31st. Penalties reach €1,500 per undeclared account.
Q: Are NFTs taxed differently?
A: Yes. NFT sales follow capital gains rules. Creator royalties qualify as BNC income if regular.
