Guide to Navigating and Understanding Your Tax Report (France)

Unsure how crypto is taxed in France? The French rules work differently from most EU countries: there is no FIFO, and crypto-to-crypto exchanges are not taxed. This guide explains when taxes apply, which rates are used, and how to stay compliant.

Key Takeaways

• Disposals of crypto-assets (against fiat currencies) are taxed under Article 150 VH bis CGI at a flat 31,4%
• Crypto-to-crypto exchanges without a cash adjustment are not taxable
• No FIFO. France applies a mandatory proportional formula to the whole portfolio (FTM-Method)
• The €305 threshold is tested on the annual total of taxable disposal prices, not on the gain
• Losses can only be offset against gains of the same nature
• Disposal fees reduce the disposal price, on production of supporting evidence

Taxation for Private Investors

Holding crypto-assets as part of the management of private wealth means disposals are taxed under Article 150 VH bis CGI at a combined rate of 31.4% on the net annual gain: 12.8% income tax (Article 200 C CGI) plus 18.6% social levies (CSG 10.6% + CRDS 0.5% + solidarity levy 7.5%).

There is no holding period exemption: gains are taxable regardless of how long the assets were held.

When Are Crypto Gains Taxable?

Taxable Disposals

The following events trigger taxation under Article 150 VH bis:

• Selling crypto for euros or other legal tender
• Paying for goods with crypto (the value of the asset received is the disposal consideration, whatever the amount)
• Paying for a service with crypto (the value of the service is the disposal consideration)
• An exchange with a cash adjustment

Deferred Transactions

• Crypto-to-crypto exchanges without a cash adjustment, including exchanges into stablecoins, where the token is a crypto-asset within Article 150 VH bis.

Non-Taxable Events

• Holding crypto-assets
• Transfers between wallets or accounts of the same holder (evidence of common beneficial ownership is essential)

Calculation Example, the FTM Method (French Tax Method)

France does not match each unit sold to a specific acquisition lot. The statute allocates to each taxable disposal a fraction of the total acquisition cost of the entire portfolio. The method is mandatory, not optional.

Gross gain or loss = Disposal price - [ Total acquisition cost × ( Disposal price ÷ Overall portfolio value ) ]

Starting position

An investor acquires:

• 1.0 BTC for €40,000 (January)
• 4 ETH for €10,000 (February)

Total acquisition price = €50,000

First taxable disposal, June

Sells 0.5 BTC for €30,000 (BTC at €60,000). Overall portfolio value immediately before the sale, the market value of all assets held, not just the one being sold:

• 1.0 BTC × €60,000 = €60,000
• 4 ETH = €20,000
• Overall portfolio value = €80,000

Gain = 30,000 - [ 50,000 × (30,000 ÷ 80,000) ] = 30,000 - 18,750 = €11,250

The €18,750 of acquisition cost used up here is deducted from the total before the next disposal.

Second taxable disposal, October

Sells the remaining 0.5 BTC for €35,000 (BTC at €70,000). Portfolio value before the sale:

• 0.5 BTC × €70,000 = €35,000
• 4 ETH = €35,000
• Overall portfolio value = €70,000

Adjusted total acquisition cost = 50,000 - 18,750 = €31,250

Gain = 35,000 - [ 31,250 × (35,000 ÷ 70,000) ] = 35,000 - 15,625 = €19,375

Result

Total gain for the year = 11,250 + 19,375 = €30,625

Key points:

• There is no per-coin cost basis in France. Acquisition costs flow proportionally across the entire portfolio.
• The gain on each sale depends on the market value of all coins on that sale date, not only the asset being sold.
• Chronological order is decisive. Every taxable disposal changes the remaining acquisition cost, so a year-end aggregate cannot reproduce the statutory result unless the sequence of transactions and the corresponding portfolio values have been retained.
• The method changes only the timing of gain recognition, not the lifetime total: the remaining €15,625 stays attached to the still-held ETH, and across all sales everything reconciles back to "total proceeds - €50,000".
• Portfolio valuation: the whole portfolio must be valued immediately before each taxable disposal, including assets on centralised platforms, in self-hosted wallets and under any other custody arrangement. Keep the timestamp and time zone, the wallet and account inventory, the quantities held, and the price and FX sources used.

Allowances and Losses

The €305 annual threshold

• Tested on the sum of taxable disposal prices for the year, excluding transactions benefiting from deferral
• If the total does not exceed €305, the corresponding gains are exempt. Once the total exceeds the threshold, all disposals for the year become taxable, including earlier ones individually below €305
• It applies to the disposal price, never to the gain, it is not an allowance against the gain

Loss Treatment

• Gross losses are offset exclusively against gross gains of the same nature realised in the same year by the tax household
• A net annual loss cannot be offset against gains on other asset classes.

Tax Impact on Crypto Income

For most assets received and held as part of private wealth management, listing them here does not by itself trigger tax — the acquisition cost is generally recorded at the fair market value at the time of receipt, and taxation is typically triggered only on later disposal (fiat conversion or payment use). 

Note that French guidance does not yet give a single universal answer for every DeFi/staking/airdrop pattern — whether a given receipt is a taxable income event or mere capital appreciation depends on facts such as who pays the reward, what service or risk produces it, and when it becomes legally/economically available. 

Tax Year, Filing and Payment Deadlines

The French tax year is the calendar year (1 January to 31 December). Crypto gains and crypto income are reported in the annual income tax return (impôt sur le revenu).

Filing Deadlines

Required Forms

France Crypto Tax at a Glance