France

In France, cryptocurrencies are legally classified as "movable assets" (actifs numériques). The country maintains a regulated status for crypto, meaning a dedicated legal framework is in place with specific tax provisions for individuals and professionals, along with clear reporting obligations. The Direction Générale des Finances Publiques (DGFiP) is the governing body for crypto taxation in France. The primary legal frameworks include Article 150 VH bis of the French Tax Code and Article L54-10-1 of the Monetary and Financial Code. For individual crypto investors, gains from the disposal of digital assets (e.g., selling crypto for fiat currency) are typically subject to a 30% flat tax, known as the Prélèvement Forfaitaire Unique (PFU). This 30% includes 12.8% income tax and 17.2% social contributions. There is no distinction made for how long you hold an asset, the 30% flat rate applies regardless of the holding period. Professional traders, however, may have their crypto gains taxed under the progressive income tax scale, which can reach up to 45%. For businesses, the standard corporate tax rate of 25% applies to crypto-related profits. Crypto-to-crypto exchanges and crypto-to-fiat exchanges are exempt from VAT, as they are considered financial services. Specific crypto activities have distinct tax treatments. Rewards from staking and mining are generally treated as non-commercial profits (BNC) and taxed under the progressive income tax scale, which can go up to 45%. Deductible expenses are permissible for miners. For DeFi activities, gains from asset disposals are taxed at the 30% flat rate, while yields and other income are subject to progressive taxation. Each conversion to fiat currency, including stablecoin swaps, is considered a taxable disposal event. Gains from selling NFTs for non-professional individuals also incur the 30% flat tax. While converting crypto to fiat currency triggers a taxable event, crypto-to-crypto trades are generally not taxed until they are eventually converted into fiat. Upcoming changes from 2026 will impact reporting requirements. The implementation of the DAC8 Directive will mandate crypto platforms to report user data to tax authorities. Additionally, individuals will be required to declare self-custody wallets holding over ‚Ǩ5,000. These measures, alongside MiCA compliance for Crypto-Asset Service Providers (CASPs), aim to enhance transparency and oversight in the crypto sector.