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

Understanding Crypto Tax Obligations in France

Reporting cryptocurrency income is mandatory for French residents under Article 150 VH bis of the General Tax Code. France treats digital assets as movable property, meaning profits are subject to capital gains tax. Since 2019, the French tax authority (Direction Générale des Finances Publiques) requires full disclosure of all crypto transactions. Failure to report can trigger audits, penalties up to 80% of owed taxes, and criminal prosecution in severe cases. Proper reporting ensures compliance with EU regulations and avoids legal complications.

Types of Crypto Income Subject to Taxation

French tax law distinguishes between several crypto revenue streams:

• Capital Gains: Profits from selling crypto at higher prices than purchase (taxed at 30% flat rate)
• Mining Rewards: Valued at market price upon receipt (treated as non-commercial profits)
• Staking/Yield Farming: Rewards taxed as income upon withdrawal or disposal
• Airdrops & Forks: Taxable based on fair market value when claimed
• Crypto-to-Crypto Trades: Each exchange constitutes a taxable event
• NFT Sales: Subject to capital gains rules if held as investment

Step-by-Step Reporting Process

Follow this procedure to declare crypto income correctly:

1. Calculate Gains/Losses: Track acquisition costs, sale prices, and transaction fees for all disposals using FIFO (First-In-First-Out) method
2. Complete Form 2086: Report capital gains in Section 3 of the annual income tax return
3. Declare Miscellaneous Income: Use Form 2042 C PRO for mining/staking revenue
4. Submit Annex 3916: Disclose foreign crypto accounts (e.g., Binance, Coinbase) with balances exceeding €10,000
5. File Electronically: Submit via impots.gouv.fr before May-June deadline (exact date varies yearly)

Tax Rates and Allowances

France applies a flat 30% tax (12.8% income tax + 17.2% social charges) on net crypto gains. Key thresholds:

• €305 annual allowance for occasional traders (applies only to capital gains)
• No tax on crypto-to-crypto trades if total annual disposals under €5,000
• Losses can be carried forward 10 years to offset future gains
• Professional traders pay progressive income tax up to 45% plus social charges

Essential Record-Keeping Requirements

Maintain these documents for 6 years:

• Transaction histories from all exchanges/wallets
• Proof of acquisition costs and disposal values
• Bank statements showing fiat conversions
• Records of hardware/software costs for miners
• Date-stamped screenshots of DeFi transactions

Frequently Asked Questions (FAQ)

Do I need to report crypto if I haven’t cashed out to EUR?

Yes. Crypto-to-crypto trades and rewards are taxable events regardless of fiat conversion under French law.

How are crypto losses handled?

Net annual losses can be deducted from gains over the next 10 years. They cannot offset other income types.

Is there a minimum threshold for reporting?

You must declare all crypto activity, but gains under €305 are tax-exempt. The €5,000 disposal threshold only exempts reporting of crypto-to-crypto trades.

What if I used a foreign exchange?

You must still declare gains and complete Annex 3916 for foreign accounts. Failure constitutes tax evasion.

Are hardware wallets reportable?

Only if they contain over €10,000 in crypto. Self-custodied wallets require transaction records but no separate declaration.

How does the tax authority track crypto?

DGFiP uses blockchain analytics tools and data-sharing agreements with exchanges. Since 2020, French platforms automatically report user transactions.

Professional Assistance Recommendations

Consider consulting a French crypto-specialized accountant if you have complex transactions like DeFi, NFTs, or mining operations. Tools like Koinly or Accointing can automate gain calculations with French tax rules. Always verify filings against official DGFiP guidelines, as regulations evolve rapidly in the crypto space.