How to Pay Taxes on Crypto Income in France: 2024 Complete Guide

Understanding Crypto Tax Obligations in France

As cryptocurrency adoption grows in France, understanding tax obligations is crucial for investors. The French Tax Administration (Direction Générale des Finances Publiques) treats crypto assets as movable property, meaning profits are subject to taxation. Whether you’re trading, mining, or earning staking rewards, this guide breaks down everything you need to know about complying with French crypto tax laws.

Types of Crypto Activities Subject to Taxation

French tax authorities categorize taxable crypto events into two main groups:

• Capital Gains: Profits from selling crypto at a higher price than purchase cost
• Miscellaneous Income:
  • Crypto mining rewards
  • Staking and lending yields
  • Airdrops and hard forks
  • Payment for goods/services in crypto

Current Crypto Tax Rates in France

France applies a unique tax structure called the Flat Tax (Prélèvement Forfaitaire Unique – PFU) at 30% for crypto gains:

• 12.8% income tax
• 17.2% social contributions (CSG/CRDS)

Note: The €305 annual allowance applies only to capital gains from occasional trading. Professional traders face progressive income tax rates up to 45%.

Step-by-Step Tax Reporting Process

1. Calculate Gains: Determine profits using FIFO (First-In-First-Out) method
2. Complete Form 2042: Report gains in section “Revenus des valeurs mobilières”
3. Attach Annex 2086: For detailed transaction reporting
4. Submit by Deadline: Typically May-June following the tax year

Essential Record-Keeping Requirements

Maintain these records for 6 years:

• Transaction dates and values in EUR
• Wallet addresses and exchange statements
• Proof of acquisition costs
• Screenshots of mining/staking activities
• Records of airdrops and hard forks

Special Cases and Exemptions

• NFTs: Taxed as movable property under same rules
• Tax-Free Threshold: Occasional traders exempt on first €305/year gains
• Loss Carryover: Net losses deductible from gains over next 10 years
• Crypto-to-Crypto Trades: Taxable events when converting between assets

Penalties for Non-Compliance

Failure to report accurately may result in:

• 10% penalty for late declaration
• 40% penalty for unreported income
• Interest accrual at 0.2% monthly
• Criminal charges for severe cases (>€50,000 undeclared)

FAQs: Crypto Taxes in France

1. Do I pay tax if I hold crypto without selling?

No tax applies until you dispose of crypto through sale, trade, or spending. Holding assets isn’t taxable.

2. How are crypto gifts or inheritances taxed?

Gifts follow standard inheritance tax rules with €100,000 allowance per 15 years between parents/children. Beyond this, rates range 5%-45%.

3. Can I deduct crypto trading losses?

Yes, net capital losses can offset gains in subsequent years for up to a decade. Losses from professional trading are fully deductible.

4. Are DeFi earnings taxable?

Yes, yield farming, liquidity mining, and lending rewards are taxed as miscellaneous income at 30% flat rate upon receipt.

5. What if I use foreign exchanges?

You must declare worldwide crypto income. Foreign platforms must provide transaction history upon request by French authorities.

6. How does the €305 allowance work?

Occasional traders (fewer than 20 trades/year) can deduct €305 from capital gains. Professional traders don’t qualify.

Staying Compliant in 2024

With France implementing DAC8 regulations in 2026, crypto tax enforcement is tightening. Use certified tax software like CoinTracking or Koinly to automate calculations. Consult a French tax advisor specializing in crypto assets for complex situations. Proper reporting avoids penalties while contributing to the legitimization of digital assets in France’s financial ecosystem.