Paying Taxes on Crypto Income in France: Your 2024 Complete Guide

Understanding Crypto Taxation in France

As cryptocurrency adoption grows in France, understanding your tax obligations is crucial. The French tax authority (DGFiP) treats crypto assets as movable property, meaning profits are subject to taxation. Whether you’re trading Bitcoin, earning from staking, or receiving crypto payments, this guide explains how to comply with French tax laws and avoid penalties.

How France Taxes Different Crypto Activities

French tax treatment varies based on activity type:

• Capital Gains: Profits from selling crypto are taxed at a flat 30% rate (12.8% income tax + 17.2% social contributions)
• Mining/Staking Rewards: Treated as non-commercial profits (BNC) taxed at progressive income tax rates up to 45% + 17.2% social charges
• Airdrops & Forks: Taxable as miscellaneous income at time of receipt based on market value
• Crypto as Payment: Value received for goods/services is subject to standard income tax and VAT obligations

Step-by-Step: Calculating Your Crypto Tax Liability

Follow this process to determine what you owe:

1. Identify Taxable Events: Sales, trades, staking rewards, and airdrops all trigger tax
2. Calculate Acquisition Cost: Use FIFO (First-In-First-Out) method for cost basis
3. Determine Gain/Loss: Sale price minus acquisition cost and fees
4. Apply Allowances: Occasional traders benefit from €305 annual exemption
5. Choose Tax Regime: Flat 30% PFU or progressive rates (whichever is lower)

Reporting Requirements & Deadlines

French crypto investors must declare using specific forms:

• Form 2086: For capital gains reporting (attached to income tax return)
• Form 3916: For declaring foreign crypto accounts (mandatory if using non-French platforms)
• Deadline: Typically May-June following the tax year (e.g., May 2025 for 2024 income)

All transactions require detailed records including dates, amounts, wallet addresses, and counterparty information for 6 years.

Penalties for Non-Compliance

Failure to properly declare crypto income in France risks:

• 10% penalty for late declaration
• 40% penalty for unreported income discovered by authorities
• Criminal charges for deliberate tax evasion
• Back taxes plus interest (0.2% monthly)

Frequently Asked Questions (FAQ)

Do I pay tax if I hold crypto without selling?

No tax applies until you dispose of crypto through sale, trade, or spending. Holding isn’t taxable.

How are crypto losses handled?

Capital losses can offset gains in the same year. Unused losses carry forward 10 years against future crypto profits.

Is DeFi taxation different?

Yes. Yield farming, liquidity mining, and lending rewards are taxed as non-commercial profits at progressive rates.

What if I use foreign exchanges?

You must still declare income and complete Form 3916 for accounts on platforms like Binance or Kraken.

Are NFTs taxable?

Yes. NFT sales follow capital gains rules. Royalties from NFT creations are taxed as intellectual property income.

Staying Compliant in 2024

With France implementing DAC8 regulations in 2026, crypto tax enforcement is tightening. Use crypto tax software to track transactions, consult a French tax advisor for complex situations, and always maintain detailed records. Proactive compliance protects you from penalties while contributing to the legitimacy of crypto in France’s financial ecosystem.