Understanding Crypto Tax Obligations in France
As cryptocurrency adoption grows in France, understanding how to report crypto income is crucial for compliance with French tax laws. The French tax authority (Direction Générale des Finances Publiques) treats cryptocurrencies as movable property, meaning capital gains from crypto transactions are generally taxable. Failure to properly declare can result in penalties of up to 80% of the owed tax. This guide breaks down the essentials for accurately reporting crypto income in France for 2024.
Types of Crypto Income and Tax Treatment
French tax law categorizes crypto activities differently:
- Capital Gains: Profits from selling crypto are taxed under the Prélèvement Forfaitaire Unique (PFU) flat tax at 30% (12.8% income tax + 17.2% social contributions). Annual allowance: €305 for occasional traders.
- Mining/Staking Rewards: Treated as non-commercial profits (Bénéfices Non Commerciaux), taxed at progressive income tax rates (up to 45%) plus 17.2% social charges.
- Professional Trading: Regular traders pay income tax on profits under industrial/commercial profits (BIC).
- Airdrops/Forks: Taxed as miscellaneous income at progressive rates upon disposal.
Step-by-Step Reporting Process
- Calculate Gains: For each transaction, determine profit (sale price minus acquisition cost and fees). Use FIFO method by default.
- Complete Form 2086: Attach this capital gains schedule to your annual tax return (déclaration des revenus).
- Report Foreign Accounts: If using non-French exchanges, declare wallets via Form 3916 by June 30th.
- File Main Return: Submit Form 2042 (paper or online) by late May/early June 2024 (exact dates vary by département).
- Pay Taxes: Settle dues by the deadline indicated on your tax notice.
Common Crypto Tax Mistakes to Avoid
- Omitting small transactions or gifts
- Failing to convert values to EUR using historical rates
- Ignoring Form 3916 for foreign exchange accounts
- Miscalculating cost basis by excluding transaction fees
- Assuming losses aren’t reportable (losses carry forward 10 years)
FAQs: Crypto Taxes in France
Q: Is crypto-to-crypto trading taxable?
A: Yes. Every trade between cryptocurrencies is a taxable event. Calculate gains in EUR equivalent at transaction time.
Q: What if I hold crypto long-term?
A: No reduced rates for long holdings. The 30% PFU applies regardless of duration.
Q: Are NFTs taxed differently?
A: Generally treated like cryptocurrencies unless created as part of professional artistic activity.
Q: Can I use crypto tax software?
A: Yes, tools like Koinly or Accointing generate France-compliant reports but verify outputs manually.
Q: What records must I keep?
A: Preserve transaction histories, wallet addresses, exchange statements, and EUR conversion proofs for 6 years.
Disclaimer: Tax regulations evolve. Consult a French tax advisor for personalized guidance. This article reflects rules effective January 2024.