In France, cryptocurrency is generally classified as movable property or an asset and is subject to taxation.

As of January 2023, being classified as a trader is not solely determined by trading frequency or volume. Private asset management activities are automatically categorized under the PFU regime.

This guide focuses on how occasional traders should comply with French crypto tax regulations. Private crypto-asset management activities are automatically categorized under the PFU regime.

Occasional traders are subject to a flat levy known as the Prélèvement Forfaitaire Unique (PFU) at a rate of 30%. The PFU consists of 12.8% Income Tax and 17.2% social security contributions. High earners may also be subject to an additional exceptional Income Tax rate, with a maximum marginal rate of 4%.

Professional traders are those who engage in cryptocurrency transactions under professional-like conditions. For professional traders, gains are considered non-commercial profits (BNC) and are taxed accordingly.

BNC taxation allows for the deduction of expenses from gross revenue to calculate net profits, which are then subject to standard Income Tax rates.

When you dispose of your cryptoassets in France—such as by selling, trading, or spending them—you may be liable to pay tax on capital gains under the Prélèvement Forfaitaire Unique (PFU) regime.

To learn more about how capital gains are calculated in France, click here.

The following are common types of outgoing transactions that trigger capital gains calculation in France:

The following are common types of outgoing transactions that do not trigger capital gains calculation in France:

You can offset your capital losses against your capital gains to reduce your net gains and, therefore, your tax bill. However, only capital losses from the same year can be used to offset capital gains.

French authorities require you to declare all disposals made during the fiscal year, not just the final result of your gains or losses.
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To learn more about how to declare disposals, click here.

As mentioned earlier, the rules are clear only for mining rewards, while the treatment of other types of reward income is still uncertain.

In France, mining rewards must be declared as BNC (“Bénéfices Non Commerciaux”) income at their value when received. This amount is taxed immediately as non-commercial profits.

When you later sell the mined crypto, you use the value at the time of receipt as your acquisition cost, so you are only taxed on any additional gain or loss realized at the time of sale.

For earnings from staking, earning, airdrop, and farming, there are no official rules in France. Accountants are divided between two main ways of declaring them.

Zero-cost entry

Some accountants recommend entering these rewards into your portfolio with a purchase value of zero. Considering rewards in this way increases the overall value of the portfolio, but not its acquisition cost. So rewards will be taxed as an increase on all your future capital gains.

Taxation upon receipt

Others accountants assimilate these rewards to mining and suggest declaring the value of the rewards as BNC income as soon as you receive them. This way, you pay taxes immediately on that value, and the rewards enter your portfolio with a purchase cost equal to the declared value.

The French fiscal year runs from 01 January to 31 December. The deadline for filing your tax return depends on your department (region):

The payment deadlines will be shown on your avis d’imposition once your tax return has been filed.

Taxpayers must report crypto transactions using FranceConnect online. To learn more about how to comply on your crypto tax obligation in France, you can check this article here.