Introduction: Navigating Crypto Taxes in France
As cryptocurrency adoption grows in France, understanding how to report crypto income is crucial for compliance with French tax laws. Failure to properly declare digital asset earnings can result in severe penalties. This comprehensive guide breaks down everything you need to know about declaring cryptocurrency income to the French tax authorities (Direction Générale des Finances Publiques).
Understanding France’s Crypto Tax Framework
France treats cryptocurrency as movable property rather than currency. Since 2019, crypto taxation follows these key principles:
- Flat capital gains tax: Profits are taxed at a fixed 30% rate (12.8% income tax + 17.2% social contributions)
- €305 annual allowance: Gains below this threshold are tax-exempt
- Specific reporting forms: Declarations made via Form 2086 and Form 3916
Types of Crypto Income and Tax Treatment
Different crypto activities trigger distinct tax obligations:
- Trading profits: Taxed as capital gains when converting crypto to fiat or other cryptocurrencies
- Staking rewards: Treated as miscellaneous income at progressive rates up to 45%
- Mining income: Considered non-commercial profits if occasional; commercial if regular
- Airdrops & forks: Taxable as income at market value when received
- Crypto payments: Subject to income tax if received for goods/services
Step-by-Step Reporting Process
Follow these steps to declare crypto income correctly:
- Calculate gains: Determine net profit (sale price minus acquisition cost) for each disposal
- Complete Form 2086: Report total capital gains in Section 3 of the income tax return
- File Form 3916: Declare all foreign crypto accounts (exchanges, wallets) by March 31st
- Report other income: Enter staking/mining earnings in the “BNC” (non-commercial profits) category
- Pay taxes: Settle liabilities through your online tax account by the annual deadline
Deadlines and Penalty Risks
Key dates and consequences for non-compliance:
- May deadline: Annual income tax return (typically late May/early June)
- March 31st cutoff: Mandatory foreign account declaration (Form 3916)
- Penalties: Up to 80% back-taxes for undeclared income + €1,500 per unreported account
- Audit window: Tax authorities can review transactions up to 6 years prior
Essential Reporting Tools and Resources
Simplify compliance with these aids:
- Tax software: Koinly, CoinTracking, or Accointing automate gain calculations
- Official guidance: Consult the BOFIP tax bulletin (BOI-BIC-CHAMP-10-10-20-60)
- Exchange reports: Download transaction histories from platforms like Binance or Coinbase
- Professional help: Engage a French crypto-savvy accountant (expert-comptable)
FAQ: Crypto Tax Reporting in France
Q: Are NFT sales taxable in France?
A: Yes. NFT profits follow standard capital gains rules with the €305 allowance.
Q: Do I pay tax when swapping BTC for ETH?
A: Yes. Crypto-to-crypto trades are taxable events requiring gain/loss calculation.
Q: How is DeFi yield farming taxed?
A: Rewards are taxed as income upon receipt. Subsequent disposal triggers capital gains tax.
Q: Can I offset crypto losses?
A: Yes. Net losses can be carried forward 10 years to offset future crypto gains.
Q: Is there a tax-free threshold for crypto gifts?
A: Gifts to direct family members enjoy a €100,000 exemption every 15 years.
Q: Are hardware wallet addresses reportable?
A: Only if hosted outside France. Domestic wallets don’t require Form 3916 declaration.
Always consult a tax professional for personalized advice. Tax rules may change – verify current regulations through impots.gouv.fr before filing.
