How to Report Crypto Income in France: Your Complete 2024 Tax Guide

Understanding Crypto Taxation in France

Reporting cryptocurrency income in France isn’t optional—it’s a legal requirement. With the French tax authority (Direction Générale des Finances Publiques) intensifying crypto oversight, proper declaration protects you from penalties while ensuring compliance. France treats crypto as movable property, meaning profits from trading, mining, or staking trigger tax events. Whether you’re an active trader or occasional investor, this guide simplifies France’s crypto tax rules into actionable steps.

Types of Crypto Income Subject to French Tax

French tax law categorizes crypto activities into taxable events. You must report:

• Capital Gains: Profits from selling crypto (e.g., Bitcoin to EUR)
• Mining Rewards: Value of coins received from mining operations
• Staking/Yield Farming: Rewards earned through DeFi protocols
• Airdrops & Hard Forks: Free token distributions if convertible to fiat
• Crypto-to-Crypto Trades: Exchanges between digital assets (e.g., ETH to SOL)
• NFT Sales: Profits from non-fungible token transactions

Note: Personal transfers between your own wallets aren’t taxed.

French Crypto Tax Rates Explained

France offers two taxation options for crypto gains:

1. Flat Tax (PFU): 30% rate (12.8% income tax + 17.2% social charges) on net gains. Applies if total capital gains exceed €305 annually.
2. Income Tax Scale: Progressive rates up to 45% + 17.2% social charges. Beneficial if your overall income places you in a low tax bracket.

Key exception: Occasional traders earning under €305/year pay 0% tax but must still declare.

Step-by-Step Guide to Reporting Crypto Taxes

Follow this process for seamless declaration:

1. Calculate Gains/Losses: Track acquisition costs, sale prices, and transaction fees using tools like Koinly or Accointing.
2. Complete Form 2086: Attach this to your annual return for capital gains reporting.
3. File Income Tax Return: Declare via impots.gouv.fr (May-June window). Use:
   • Box 3AN for capital gains
   • Box 3TT for mining/staking income
4. Pay Taxes: Settle dues by September following the tax year.

Pro tip: Losses can be carried forward 10 years to offset future gains.

Essential Record-Keeping Requirements

Maintain these records for 6 years:

• Transaction histories from exchanges/wallets
• Proof of asset acquisition dates and costs
• Documentation of mining/staking rewards
• Bank statements showing fiat conversions

French authorities may request audits—organized records prevent disputes.

Penalties for Non-Compliance

Failure to report accurately risks:

• 10% penalty for late declaration
• 40% fine for unreported income
• Criminal charges for deliberate fraud
• Interest on overdue taxes (0.2%/month)

Voluntary corrections before audit reduce penalties by 30%.

Frequently Asked Questions (FAQ)

Do I pay tax if I hold crypto without selling?

No—taxation occurs only upon disposal (selling, trading, or spending crypto).

How are crypto losses handled?

Net annual losses can be deducted from gains over the next 10 years, reducing future tax bills.

Is Binance or Coinbase reporting to French authorities?

Yes. Since 2023, all French crypto platforms automatically share user data with tax agencies under DAC8 regulations.

Can I use foreign exchanges without a French KYC?

Legally no. French residents must use platforms registered with AMF (Autorité des Marchés Financiers). Non-compliant exchanges risk access blocks.

Are stablecoin conversions taxable?

Yes—exchanging crypto for stablecoins (e.g., BTC to USDT) is a disposal event triggering capital gains tax.

What if I forgot to declare past crypto income?

File amended returns immediately via the “déclaration rectificative” process. Penalties decrease if voluntary.

Staying Compliant in 2024

With France implementing the EU’s Markets in Crypto-Assets (MiCA) framework, regulations will tighten further. Consult a French tax advisor specializing in crypto for complex cases. Remember: Accurate reporting avoids penalties while contributing to blockchain’s legitimacy in France’s financial ecosystem.