Key points
- Crypto gains are taxable in France, whether they come from selling assets, mining or staking, and the tax treatment varies according to the source.
- Individuals’ capital gains are exempt where total disposals in the year do not exceed €305 (Article 150 VH bis of the French Tax Code (CGI)).
- Two options exist: the flat tax (PFU) of 31.4% (12.8% income tax plus 18.6% social levies) or the progressive scale from 0% to 45%, with social levies on top.
- Gains made in conditions similar to those of a professional fall under BNC (non-commercial profits) (Article 92 of the CGI), as does mining, with deduction of expenses or a flat-rate allowance.
- Capital gains are declared on form 2086, stating the sale price, the acquisition price and the related fees.
- According to the French tax authorities, staking income falls under non-commercial profits (BNC).
Identifying taxable gains
In France, gains made on cryptocurrencies are taxable, whether you are an individual or a professional. It is crucial to distinguish between the different sources of these gains, such as the sale of digital assets, mining or income generated by staking. Each type of income may be subject to different tax treatment.
Individuals are exempt where the total amount of disposals in the year does not exceed €305, under Article 150 VH bis of the French Tax Code (Code général des impôts, CGI) (in French). The price of these exempt disposals must nevertheless be reported on the schedule to the income tax return. Above this amount, the capital gain is subject to the flat tax (prélèvement forfaitaire unique, PFU) or, by election, at the progressive income tax scale.
The flat tax (PFU)
The PFU, also known as the “flat tax”, applies to capital gains on disposals of crypto-assets at an overall rate of 31.4%: 12.8% income tax (Article 200 C of the French Tax Code (in French)) and 18.6% social levies, including 10.6% CSG (generalised social contribution) since the Social Security Financing Act for 2026. This simplified mechanism is often preferred by occasional investors.
Whichever method of taxation you choose, PFU or progressive scale, you must declare all taxable disposals made in the year, whether they were made on French or foreign platforms. The status of the platform (former digital asset service providers (PSAN) registered with the AMF (French financial markets authority) or crypto-asset service providers (CASPs) authorised under the MiCA Regulation) does not exempt you from any of these obligations.
The progressive income tax scale
The progressive scale is an alternative for those who wish to include their gains in their overall income, particularly if their marginal tax rate is below 12.8%. This option, which must be express and is irrevocable, can be advantageous for taxpayers with little taxable income. The 18.6% social levies remain payable in both cases.
To choose this option, you must tick box 3CN on the income tax return; it is independent of the option relating to investment income (revenus de capitaux mobiliers). The gains are then added to your other income, and the total is subject to the progressive income tax scale, with rates ranging from 0% to 45%.
Professional gains and non-commercial profits (BNC)
For people who buy, sell and exchange crypto-assets in conditions similar to those of a professional, the gains are treated as non-commercial profits (bénéfices non commerciaux, BNC). Under Article 92 of the French Tax Code (in French) (CGI), this income is subject to income tax in the BNC category. A commercial activity, on the other hand, falls under industrial and commercial profits (bénéfices industriels et commerciaux).
Under the actual-expenses regime (déclaration contrôlée), the tax base is calculated by deducting the expenses linked to the activity (such as the cost of electricity for mining) from gross income. Under the micro-BNC regime, a flat-rate allowance of 34% replaces the deduction of actual expenses.
Cryptocurrency mining also falls under BNC where the remuneration corresponds to participation in the creation or operation of the system. The taxable profit is determined under the same rules: actual expenses or the micro-BNC allowance.
Reporting and filing obligations
Taxpayers must declare each year the capital gains they make on disposals of digital assets. This declaration is made on form 2086, where you must state the sale price, the acquisition price and any fees associated with the transaction.
The tax authorities’ online service allows taxpayers to declare their capital gains. Taxpayers must take care that the information they provide is accurate, as any omission or incorrect declaration can lead to severe penalties.
Special cases and specific regimes
Staking and other passive income
Staking, or using cryptocurrencies to take part in validating transactions on a blockchain, generates income that is also taxable. The tax authorities state on impots.gouv.fr that this income falls under non-commercial profits (BNC), not the capital gains regime.
International transfers and tax
Crypto-asset wallets opened, held, used or closed with platforms established abroad must be declared every year with the income tax return (Article 1649 bis C of the French Tax Code (in French)). In a tax audit, the tax authorities may require supporting documents for transfers, particularly where these led to a conversion into fiat currency.
Penalties and risks for failing to declare
Taxpayers who do not meet their filing obligations face penalties. The French Tax Code (CGI) provides for a fine of €750 per undeclared wallet held abroad, increased to €1,500 where its value exceeded €50,000 (Article 1736, X). In addition, an under-declaration can lead to a surcharge of 40% for deliberate failure and 80% for fraudulent manoeuvres (Article 1729).
If in doubt, we recommend consulting a digital asset tax lawyer to make sure all legal obligations are met and to avoid disputes with the tax authorities.
For assistance: crypto tax lawyer: declaring and taxing crypto-assets.
For the full set of rules, see our guide to crypto tax in France.
