Paying Taxes on Staking Rewards in France: Your 2024 Crypto Tax Guide

What Are Staking Rewards and How Are They Taxed in France?

Staking rewards—earned by locking cryptocurrencies to support blockchain networks—are taxable events under French law. Unlike some jurisdictions treating them as capital gains, France classifies staking income as miscellaneous movable income (Revenus Mobiliers Divers, RMD). This means rewards are taxed at a flat rate of 30% (12.8% income tax + 17.2% social charges), regardless of your total income bracket. Understanding this classification is crucial for compliant reporting to avoid penalties.

How Staking Rewards Are Classified for Tax Purposes

French tax authorities categorize staking rewards based on activity nature:

• Non-professional staking: Rewards are taxed as RMD at 30% if occasional.
• Professional staking: Regular, organized activity may qualify as industrial/commercial profits (BIC), subject to progressive income tax (up to 45%) plus social charges.
• DeFi staking pools: Treated similarly to traditional staking, but complex yield farming may trigger additional scrutiny.

Key distinction: Rewards aren’t taxed upon receipt but when converted to fiat or exchanged for goods/services. Unrealized gains remain untaxed.

Calculating Your Tax Liability on Staking Rewards

Follow these steps to determine what you owe:

1. Track reward value: Record the euro value of each reward on the day it’s received using reputable exchange rates.
2. Sum annual rewards: Total all rewards accrued during the tax year (January 1–December 31).
3. Apply the 30% flat tax: Multiply the total by 0.30 for RMD classification.
4. Account for sales: If selling staked assets later, calculate capital gains separately using acquisition cost (€0 for rewards).

Example: Earn 1 ETH in rewards valued at €2,000 when received. Tax due = €2,000 × 30% = €600.

Reporting Staking Rewards on Your French Tax Return

Declare rewards in your annual income tax declaration (typically filed May–June):

• Use Form 2042 C, Box 3TS (Revenus Mobiliers Divers).
• Report the total euro value of rewards received during the tax year.
• Keep detailed records including:
  • Blockchain transaction IDs
  • Exchange rate proofs
  • Wallet statements

Failure to report may incur penalties up to 80% of owed taxes plus interest. Third-party reports (e.g., exchanges) increase detection risks.

Special Considerations for French Crypto Investors

• NFT staking: Rewards follow the same RMD rules if derived from cryptocurrency.
• Stablecoin staking: Taxed identically to volatile crypto rewards.
• Tax-loss harvesting: Losses from staked asset sales can offset capital gains but not staking income.
• Auto-staking protocols: Rewards compound tax obligations annually—each reinvestment is a taxable event.

Note: The 2024 Finance Bill maintains this framework, but consult a tax advisor for entity-based staking or high-volume activities.

Frequently Asked Questions (FAQ) About Paying Taxes on Staking Rewards in France

1. Are staking rewards taxed differently than trading profits?

Yes. Trading profits are capital gains (taxed at 30% flat rate), while staking rewards are miscellaneous income (also 30% flat). Different reporting boxes apply.

2. Do I pay taxes if I restake rewards instead of cashing out?

Yes. Tax triggers upon reward receipt, not conversion to fiat. Restaking counts as disposal of the initial reward, creating a new taxable event.

3. How does France treat staking from foreign platforms?

French residents must declare worldwide income. Foreign-platform rewards follow the same RMD rules. Double taxation treaties may apply to offset liabilities.

4. What if I only earned small rewards (under €100)?

No minimum threshold exists. All rewards must be declared regardless of amount. Micro-transactions still require documentation.

5. Can I deduct staking-related costs?

Generally no for non-professional stakers. Professional stakers (BIC status) may deduct expenses like hardware or software costs proportionally.

6. Is proof-of-stake (PoS) treated differently than delegated staking?

No. Both self-staking (running a node) and exchange-based delegated staking generate taxable rewards under identical RMD rules.