Key Takeaways
France is considering a 31.4% tax on certain bitcoin-to-stablecoin swaps, potentially ending tax deferral for qualifying transactions.
An exit tax could target qualifying digital asset holdings worth over €800,000, while undeclared self-custody wallets worth at least €100,000 could face reporting requirements.
None of the proposals is law yet. France's National Assembly rejected the budget's revenue section, leaving the measures' future uncertain.
What France’s Proposed Tax Changes Mean for Investors
France is considering new digital asset tax rules that could affect bitcoin investors, stablecoin traders and people moving abroad with large bitcoin holdings. The proposals include:
31.4% tax on stablecoin swaps: Certain digital-asset-to-stablecoin transactions could trigger capital gains tax.
€800,000 exit tax threshold: Qualifying digital asset holdings could face exit tax when investors move their tax residence abroad.
€100,000 wallet reporting threshold: Investors could be required to declare qualifying self-custody holdings, with fines of up to €10,000 for non-compliance.
10-year loss carryforward: Investors could potentially carry qualifying digital asset losses forward to offset future taxable gains.
31.4% Tax on Stablecoin Swaps
French lawmakers brought forth a proposal considering a 31.4% capital gains tax on certain digital-asset-to-stablecoin swaps, which could make transactions involving qualifying stablecoins taxable even without converting funds into euros.
This was part of the country’s 2027 budget discussions. However, the National Assembly’s Finance Committee later rejected the budget’s revenue section, meaning the measures must be introduced again and have not become law.
If approved, the proposed changes would largely take effect from January 1, 2027.
Under France’s current rules, investors can generally swap one digital asset for another without immediately paying capital gains tax. For example, someone who buys bitcoin and later exchanges it for USDT usually does not pay tax at the time of the swap.
Tax generally becomes due when they sell digital assets for euros or use them to buy goods and services.
The proposed amendment would change this rule for certain stablecoins regulated under the European Union’s Markets in Crypto-Assets (MiCA) framework.
If the proposal becomes law, exchanging bitcoin for a qualifying stablecoin, such as USDC, could trigger capital gains tax even if the investor keeps the money in a digital asset wallet and does not withdraw euros.
France currently applies a 31.4% flat tax to taxable digital asset gains. The proposal would extend this existing tax to qualifying stablecoin swaps rather than create a new tax rate.
The amendment was introduced by lawmaker Nicolas Sansu and initially approved by the Finance Committee on October 7, but now it faces an uncertain path and must be resubmitted after the broader budget bill's revenue section was rejected.
However, the proposal does not cover every stablecoin automatically. Its scope depends on whether the token received meets the relevant EU definition of an electronic money token.
The proposed tax has raised concerns that investors could move their trading activity away from regulated platforms.
Experts warn that the measure could push traders toward decentralized finance (DeFi) platforms, peer-to-peer trading and exchanges outside international tax-reporting arrangements.
The concern is straightforward: if swapping bitcoin into a regulated stablecoin triggers tax, some investors may look for alternatives that fall outside the new rule.
It remains unclear whether the proposed tax would cause investors to change their trading habits if it became law, but it is very likely.
€800,000 Digital Asset Exit Tax
France is also considering extending its existing exit tax to large digital asset holdings.
The proposal would target qualifying holdings worth more than €800,000 when eligible taxpayers move their tax residence out of France.
The proposal would tax digital asset holdings exceeding €800,000
An exit tax can apply to gains that investors have made on paper but have not yet realized by selling their assets. For example, someone who bought bitcoin for €40,000 and later saw its value rise substantially could face a tax issue when moving abroad, even if they had not sold it.
The proposed amendment, I-CF1822, was approved by the Finance Committee on October 8 for a reading, but the rejection of the broader revenue bill has cast uncertainty over its future.
€100,000 Self-Custody Wallet Reporting
Another proposal would require people to declare self-custody digital asset holdings worth at least €100,000.
Self-custody means holding digital assets in a wallet that you control yourself, rather than leaving it with an exchange or another service provider. Under the proposal, taxpayers would report qualifying holdings based on their value on December 31 each year. Failure to comply could result in a fine of up to €10,000.
Lawmakers supporting the measure say it could help authorities identify undeclared digital assets and reduce tax evasion.
However, the proposal has raised security concerns. Critics warn that collecting information about large bitcoin and digital asset holdings could put investors and their families at risk if the data were leaked.
The reporting proposal would not ban self-custody wallets or force people to move their bitcoin to an exchange.
10-Year Digital Asset Loss Carryforward
French lawmakers have also backed a proposal to let investors carry qualifying digital asset losses forward for up to 10 years, potentially allowing them to offset future taxable gains.
These changes could affect how much tax investors pay and when they must pay it.
The Finance Committee rejected the revenue section of the government’s 2027 budget by 31 votes to 3 on October 9.
As a result, the digital asset amendments must be submitted again during the National Assembly’s debate. Lawmakers were scheduled to begin debating the revenue section again, with a vote planned for October 20. None of the proposals has become law.
