France applies a flat 30% tax (Prélèvement Forfaitaire Unique, or PFU) on crypto gains. Here’s what you need to know.
Key Rules
| Rule | Detail |
|---|---|
| Tax rate | 30% flat (PFU) |
| Annual allowance | No tax on gains under €305 (if total portfolio value < €30,600) |
| Crypto-to-crypto | Taxable event |
| Holding period | No long-term discount |
| Losses | Can offset gains (same year only) |
| Reporting | Form 2086, then included in tax return |
Taxable Events
The following trigger a tax liability in France:
- Selling crypto for fiat (EUR)
- Trading crypto for another crypto
- Using crypto to buy goods or services
- Gifting crypto (above certain thresholds)
How Gains Are Calculated
France uses a unique formula based on the proportion of the portfolio sold:
Taxable gain = (Sale proceeds - (Cost basis × Sale proceeds / Total portfolio value))
Example:
- You bought €10,000 of ETH (total portfolio)
- Later you add €5,000 of BTC (portfolio now €15,000)
- You sell €3,000 of ETH
Taxable gain = €3,000 - (€10,000 × €3,000 / €15,000) = €3,000 - €2,000 = €1,000
Tax due = €1,000 × 30% = €300
Crypto-to-Crypto Trading
In France, trading one crypto for another IS a taxable event. Each trade must be recorded and the gain/loss calculated.
This makes frequent trading very tax-inefficient. Each trade crystallises a gain (or loss) that must be reported.
Staking, Mining, and DeFi
| Activity | Tax Treatment |
|---|---|
| Staking rewards | Taxable as income (non-commercial profit) |
| Mining | Taxable as industrial/commercial profit |
| DeFi lending | Taxable as investment income |
| Airdrops | Taxable at market value when received |
Staking and mining are generally taxed at progressive income tax rates (up to 45%) plus social charges (17.2%), which can be higher than the 30% PFU.
Losses
Capital losses can only offset capital gains in the same tax year. Losses cannot be carried forward to future years.
This is a significant disadvantage compared to countries like the UK and US.
Reporting Process
- Form 2086 — Calculate your overall gain/loss
- Tax return — Report the total in your annual déclaration
- Timing — Report in the year following the transactions
Scenario by scenario
| Scenario | Tax Treatment |
|---|---|
| Buy ETH, sell for EUR (€10,000 gain) | 30% PFU (€3,000 tax) |
| Trade BTC for ETH (€5,000 gain) | 30% PFU (€1,500 tax) |
| Small portfolio under €30,600, gain under €305 | ✅ Exempt |
| Stake SOL, receive €500 | Taxed as non-commercial income |
| Trade 50 times in a year | Taxable on every trade |
Bottom Line
France’s 30% flat tax is simple but the calculation method is unusual. Trading crypto-to-crypto triggers tax, making long-term holding more tax-efficient. Staking and mining are taxed at higher rates under the income tax regime. Use crypto tax software designed for France to avoid calculation errors.
Filing your return without errors
The French calculation is unusual, so it is worth walking through your reporting carefully. For each disposal you need the sale proceeds, your aggregate cost basis, and the total value of your portfolio at the time of the sale — the formula uses the proportion of the portfolio sold rather than matching individual lots. Keeping transactions in a single currency and using crypto tax software configured for France reduces the chance of arithmetic mistakes. Report on Form 2086 and then fold the resulting figure into your annual déclaration for the year following the transactions.
What to avoid
The most avoidable French tax errors are the small ones that compound into a bigger bill. Forgetting that a crypto-to-crypto trade is itself a disposal means understating your gains with every swap you record only partly. Not tracking your full portfolio value when you sell skews the proportional calculation. Treating staking or mining income as a capital gain when it belongs on the income schedule can lead to an underpayment. And because losses cannot be carried forward, ignoring them in the year they occur wastes relief you can never claim later. A disciplined, year-round record — not a frantic April reconciliation — is the real safeguard.
Common questions
Beyond the headline rate, residents usually want to know whether their small portfolio is worth worrying about. If your total portfolio value stays under €30,600 and your gains are under €305, the exemption applies and there is nothing to report. If you sell only occasionally and stay within those thresholds, the burden is modest. The complexity creeps in with activity: frequent trading, staking, mining, airdrops, and gifting all trigger events that need recording. Each of these has its own classification under French law, so treat them separately rather than folding everything into one capital gains figure.
Keeping the rules in context
French crypto tax law is specific but still moving. The 30% PFU simplifies the headline rate, yet the structure — proportional gain calculation, no loss carry-forward, income treatment for staking and mining — is different enough from the UK or US that residents should not assume a familiar approach transfers over. If your situation involves large portfolios, active trading, or significant staking and DeFi income, a French tax adviser who understands crypto is worth engaging. For the typical investor who buys, holds, and sells occasionally on a French exchange, disciplined records and compliant software keep the process straightforward without needing specialist help.