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
Summary Table
| 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.