Important: this information concerns non-professionals. Persons regarded as professionals in cryptocurrency transactions will be subject to a different tax treatment (gains from a habitual activity of buying and reselling digital assets were taxable in the category of industrial and commercial profits (bénéfices industriels et commerciaux, BIC) until 31 December 2022, and in the category of non-commercial profits (bénéfices non commerciaux, BNC) since 1 January 2023 (Art. 92 of the French General Tax Code (Code général des impôts, CGI)): decisions of the Conseil d’Etat of 26 April 2018, nos. 417809, 418030 to 418033).

Under Article 150 VH bis of the French General Tax Code, capital gains realised by individuals who are tax-domiciled in France, directly or through an intermediary, upon an occasional disposal for consideration of digital assets, including cryptocurrencies (Monero, Litecoin, Ripple, etc.), are subject to income tax at the rate of 12.8% (to which social security contributions (prélèvements sociaux) are added at the rate, currently, as of April 2019, of 17.2%). This gives an overall tax rate, currently, as of April 2019, of 30% (31.4% since the 2026 Social Security Financing Act (LFSS 2026), social security contributions having risen to 18.6%).

Very small disposals are not concerned: taxpayers are exempt from tax when the total disposal proceeds do not exceed €305 during the tax year.

Gains from the sale of cryptocurrencies obtained in return for mining activity are taxable in the BNC category. This remains consistent with the administrative doctrine applicable since 2014; the latest law therefore did not introduce anything new on this point.

Summary:

Reminder: cryptocurrency trader regarded as a professional: BNC tax regime since 1 January 2023 (BIC previously)

Reminder: gain on the disposal of cryptocurrencies obtained through mining activities: BNC tax regime

Occasional cryptocurrency trader: 30% flat-rate single levy (prélèvement forfaitaire unique) (31.4% since the LFSS 2026; option for the progressive scale possible since 2023). This rate applies to 2019 transactions, but the reporting obligation starts in 2020 (in 2020, you will report your 2019 gain).

Calculation of capital gains on sales of cryptocurrencies regarded as occasional

The gross capital gain or loss realised on the disposal is equal to the difference between, on the one hand, the disposal price and, on the other hand, the product of the total acquisition price of the entire digital asset portfolio multiplied by the ratio of the disposal price to the overall value of that portfolio.

The disposal price to be used for calculating the capital gain is the actual price received or the value of the consideration in goods or services obtained by the seller, less the costs borne by the seller.

The total acquisition price of the digital asset portfolio is equal to the sum of the prices paid in legal tender for all acquisitions made before the disposal, and of the value of the goods or services provided in return for those acquisitions (excluding exchange transactions that benefited from tax deferral). The overall value of the digital asset portfolio at the time of the disposal is equal to the sum of the values of the various digital assets held by the seller before carrying out the disposal.

It is possible, or even likely, that these rules do not seem clear to you.

Here is therefore a concrete calculation example prepared by our tax law firm.

Example

In January 2019, a taxpayer buys ten ETH for an amount of €1,300.

His portfolio in January 2019 = 10 ETH

In May 2019, he exchanges 5 ETH for 10 LITECOIN. This transaction is regarded as an intermediate (intercalaire) transaction and is therefore not taxable.

In May 2019 his portfolio = 5 ETH / 10 LTC

In 2019, he has no tax return to file in relation to his income (he may have some to file relating to holding cryptocurrency accounts abroad, see the end of the article)

Time passes.

In December 2022, he sells 10 LTC for an amount of €5,000.

In December 2022 his portfolio = 5 ETH

Acquisition price of the portfolio before the disposal = €1,300

Value of the portfolio at the time of the disposal in December 2022 = 5,000 (disposal price of the 10 LTC) + 5 ETH valued at €4,000 (theoretical value of 1 ETH in December 2022 of €800)

=

€9,000

The disposal of the 10 LTC generates a capital gain of:

5,000 – (1,300 x 5,000 / 9,000) = €4,278

The 5,000 represents the disposal price of the LTC

The 1,300 represents the total purchase price of the portfolio

The 9,000 represents the total value of the portfolio at the time of the disposal

Reporting in 2020 the capital gains or losses realised in 2019

Taxpayers enter on their annual income tax return the overall amount of the capital gain or loss realised in respect of the taxable disposals of the year.

They attach to this return an appendix, form no. 2086, on which they list and value all the capital gains or losses realised on each of the taxable disposals carried out during 2019.

Warning: do not forget to also complete line 3AN of return no. 2042 C in the event of an overall capital gain, or line 3BN in the event of an overall capital loss.

Reporting cryptocurrency accounts opened abroad

The form to be used is no. 3916-bis

Individuals, associations and non-commercial companies domiciled or established in France are required to report, together with their income or profit tax return, the details of digital asset accounts opened, held, used or closed with businesses, legal entities, institutions or bodies established abroad.

Failure to report is penalised by a fine of €750 per unreported account, or €125 per omission or inaccuracy, up to a limit of €10,000 per return. These amounts of €750 and €125 are increased to €1,500 and €250 respectively when the value of the accounts exceeds €50,000 at any time during the year.

Summary of reporting obligations

1- complete form no. 2086

2- carry over the overall capital gain or loss to line 3AN (in the event of a gain) or 3BN (in the event of a loss) of return no. 2042 C

3- report each foreign exchange using form 3916-bis. 1 form 3916-bis per foreign exchange (so if in 2019 you had 3 foreign exchanges, you will need to complete 3 forms 3916-bis).

Our tax law firm can assist you.