About 3.4 million people owned crypto in France in 2022, that is 5% of its population. Crypto taxation in France is also very lenient as it is taxed as capital gain and only conversion of crypto into fiat is counted as disposal of capital gain in France, making most of the transactions tax free.
Do you have to pay crypto tax in France?
Yes, crypto transactions are taxed as capital gains in France based on the nature of the taxpayer, that is if the taxpayer is an occasional trader or professional trader.
When do you have to pay tax on crypto in France?
Disposal of crypto assets subject to taxes in France.
What crypto transactions are taxable in France?
Only conversion of crypto into fiat is taxable in France.
What are the Crypto Tax Rates in France?
Tax rates in France depend on if you are a professional trader or occasional trader.
In the first case, tax rates vary on a progressive rate from 0% to 45%. Whereas, for occasional traders a flat rate of 30% is levied.
Occasional traders can also opt for a progressive tax system and waive off 12.8% tax that is a component of 30% flat rate.
- FOR PROFESSIONAL TRADERS
| Income Brackets | Rate |
| Up to €10,777 | 0% |
| From €10,778 to €27,478 | 11% |
| From €27,479 to €78,570 | 30% |
| From €78,571 to €168,994 | 41% |
| More than €168,994 | 45% |
- FOR OCCASIONAL TRADERS
| Prélèvement forfaitaire unique (PFU) | Rate |
| Income Tax | 12.8% |
| Social security contributions | 17.2% |
| Total rate | 30.0% |
France Income Tax Brackets (2023)
| Income Brackets | Rate |
| Up to €10,777 | 0% |
| From €10,778 to €27,478 | 11% |
| From €27,479 to €78,570 | 30% |
| From €78,571 to €168,994 | 41% |
| More than €168,994 | 45% |
France Capital Gain Tax Rates (2023)
A flat rate of 30% is levied on capital gains, out of which 12.8% is income tax and rest is social security contributions.
How is Tax Calculated on Cryptocurrency in France?
In order to calculate your crypto gains, the PVCT Method is used in France. In this method, the cost basis is calculated on the basis of the fraction of your whole you are selling. The formula to calculate cost basis is:
Sale price – [total acquisition price × (sale price / overall value of the portfolio)]
For example, you bought 5 BTC for EUR 12,000, that is EUR 2400 per BTC in 2020. Then in 2021, you bought 3 BTC for EUR 9000, that is EUR 3000 per BTC. You now wish to sell 2 BTC in 2023 for EUR 7,000.
The whole value of your portfolio is 12,000 + 9000 = EUR 21,000.
You will be selling 7,000/21,000 = 33.33% of your whole portfolio.
Therefore, the taxable capital gain on this transaction becomes:
21,000 – [12000 × 33.33% ] = 21,000 – 3,960
= EUR 8040 is the taxable amount.
Is there any Crypto Tax Free in France?
Buying, swapping and transferring crypto are tax free in France.
Crypto Tax in France – FAQs
Do you have to pay tax when you buy crypto in France?
No, you do not have to pay tax when you buy crypto in France
Do you have to pay tax when you sell crypto in France?
Yes, you have to pay tax when you sell crypto in the France
Do you have to pay tax when transferring crypto in France?
No, you do not have to pay tax when transferring crypto in France
Do you have to pay tax when spending crypto in France?
Since spending crypto might essentially mean converting it to fiat, spending crypto may be subject to taxes.
Is swapping crypto taxable?
No, swapping crypto is not taxable.
How much tax on crypto gains in France?
30% for occasional traders. 0% to 45% for professional traders.
How do I avoid capital gains tax on crypto in France?
Holding long term investments might be beneficial here.
Market Research Intern, Octaloop
Maitreyee takes a keen interest in financial technologies and their potential to transform lives at the grassroots. Put together with her penchant for Economic Research, she brings tonnes of academic and actionable insight into our products. Maitreyee is contributing at Binamite as a Market Research Intern, and when she's not doing that, you can find her exploring the city or buried in a book.