Key facts
- France's Finance Committee voted to tax crypto holders who swap into stablecoins.
- A proposed exit tax would apply to crypto holdings over €800,000 for those moving tax residency abroad.
- These measures are set to apply from January 1, 2027, if re-tabled and passed.
- The committee rejected the budget's revenue section, requiring amendments to be reintroduced.
- Investors may be allowed to carry crypto losses forward for 10 years under a separate amendment.
France's National Assembly Finance Committee has advanced proposals to tax cryptocurrency holders, including taxing swaps into stablecoins and imposing an exit tax on wealthy individuals moving abroad. However, the committee's rejection of the budget's revenue section means these measures must be reintroduced for further debate.
The committee adopted an amendment that would treat the exchange of cryptocurrencies for stablecoins, defined under the EU's MiCA regulation, as a taxable sale starting January 1, 2027. Currently, such swaps are not taxed in France unless the stablecoin is converted back into fiat currency or spent.
A second amendment, also proposed by Nicolas Sansu, aims to extend France's exit tax to crypto assets. This tax, levied when a tax resident moves their domicile abroad, would apply to households with combined crypto holdings exceeding €800,000, provided they were French tax residents for at least six of the past 10 years. This threshold mirrors that for shares, and the payment deferral rules would also align with the stock regime.
Additionally, an amendment by Daniel Labaronne would permit investors to carry forward crypto losses for 10 years, similar to existing rules for stocks, which is not currently allowed.
Despite these adoptions, the committee rejected the entire revenue section of the budget on October 9 by a vote of 31 to 3. This means the full Assembly will begin its debate on October 13 using the government's original text, without the crypto-related amendments. Proponents of the crypto tax measures would need to re-table them during the floor debate. The Assembly is scheduled to vote on the revenue section on October 20. If the amendments are reintroduced and approved, the new tax rules would take effect from January 1, 2027.