France Advances Crypto Tax Amendment Targeting Bitcoin as Unproductive Wealth

• French lawmakers voted 163-150 to advance the tax amendment on October 22, backed by centrist, socialist, and far-right MPs.

• The measure expands the real estate wealth tax to cover digital assets like cryptocurrencies, previously exempt as unproductive goods.

• Only holdings exceeding 2 million euros ($2.3 million) face the flat 1% rate, up from the current 1.3 million euro threshold with progressive rates up to 1.5%.

Discover how France’s new unproductive wealth tax targets crypto holdings over 2 million euros, sparking debate among investors. Stay informed on crypto taxation in France and protect your assets today.

What is France’s Unproductive Wealth Tax on Crypto?

France’s unproductive wealth tax refers to an amendment passed by the National Assembly that redefines certain assets, including cryptocurrencies, as “unproductive wealth” subject to taxation. This measure, filed by Centrist MP Jean-Paul Matteï on October 22, aims to broaden the scope of the existing real estate wealth tax to include items like gold, art, and digital assets that do not directly contribute to economic productivity. The amendment passed with a narrow vote of 163-150, gaining support from socialist and far-right lawmakers, though it must still navigate Senate approval for the 2026 budget.

The tax targets high-value holdings to incentivize investments in productive sectors, reflecting a policy shift toward integrating non-traditional assets into fiscal frameworks. By equating crypto with other idle luxuries, French authorities seek to address perceived economic inconsistencies in the current system.

How Does the Unproductive Wealth Tax Affect Crypto Holders in France?

The amendment expands taxable assets to encompass “digital assets” under the unproductive wealth category, previously excluded from the real estate wealth tax. Individuals with total unproductive wealth surpassing 2 million euros will face a flat 1% levy on the excess amount, a change from the progressive structure that currently starts at no tax below 800,000 euros and reaches 1.5% for assets over 10 million euros.

According to details from the National Assembly proceedings, this includes cryptocurrencies held in portfolios deemed non-productive, such as Bitcoin or Ethereum not actively traded or staked in economic ventures. Éric Larchevêque, co-founder of Ledger, a prominent crypto wallet provider, criticized the move, stating, “This punishes all savers who wish to financially anchor themselves to gold and Bitcoin in order to protect their future.” He highlighted the ideological stance that views crypto as an unproductive reserve, detached from the real economy.

Larchevêque further noted potential practical challenges, warning that holders might need to liquidate assets to cover the tax if lacking other liquidity sources. Data from French tax authorities indicate that while only a small percentage of the population holds such high-value assets, the inclusion of crypto could impact thousands of investors, with estimates from financial analysts suggesting up to 50,000 individuals might be affected based on 2024 wealth distribution reports.

The threshold increase from 1.3 million to 2 million euros raises the bar for taxation, potentially sparing mid-tier holders while focusing on ultra-wealthy portfolios. However, experts like those from the French Banking Federation have expressed concerns that this could drive capital flight to more crypto-friendly jurisdictions in the European Union, echoing broader EU discussions on harmonized digital asset regulations.

Frequently Asked Questions

What Threshold Triggers the France Unproductive Wealth Tax on Crypto?

The tax applies to unproductive wealth exceeding 2 million euros, including crypto holdings. This flat 1% rate on the excess replaces the prior progressive system, affecting only high-net-worth individuals as outlined in the amendment passed by the National Assembly.

Will France’s Crypto Tax Amendment Become Law in 2026?

The amendment has advanced through the lower house but requires Senate approval for inclusion in the 2026 budget. While legislative hurdles remain, supporters predict a strong chance of implementation by January 1, 2026, based on current parliamentary momentum.

How Does This Compare to Existing Crypto Taxes in France?

France currently taxes crypto capital gains at 30% for individuals, but this new wealth tax targets holding values rather than transactions. It aligns with EU trends toward comprehensive asset taxation, as seen in recent MiCA framework discussions.

What Assets Are Classified as Unproductive Wealth Under the Amendment?

Unproductive wealth includes non-productive real estate, precious objects, planes, art, gold, and digital assets like cryptocurrencies. The policy aims to close exemptions for items not contributing to economic growth, per MP Matteï’s filing.

Key Takeaways

• Tax Expansion Targets High-Value Holdings: The 2 million euro threshold ensures only substantial crypto portfolios are impacted, promoting a shift toward productive investments.
• Legislative Path Ahead: With Senate review pending, the amendment’s fate hinges on budget negotiations, but initial passage signals growing regulatory scrutiny on digital assets.
• Investor Concerns Mount: Experts urge monitoring for potential threshold reductions, advising diversified portfolios to mitigate forced sales for tax compliance.

Conclusion

France’s unproductive wealth tax amendment marks a significant evolution in crypto taxation in France, integrating digital assets into a broader fiscal strategy to bolster economic dynamism. By taxing holdings over 2 million euros at 1%, lawmakers address gaps in the current system, though critics like Éric Larchevêque warn of disincentives for savers seeking stability in Bitcoin and similar assets. As the measure progresses through the Senate, investors should prepare for potential changes in 2026, consulting tax professionals to navigate this shifting landscape and explore opportunities in compliant, productive crypto strategies.

Lawmakers in France’s National Assembly have passed an amendment that would consider larger crypto holdings “unproductive wealth” and subject them to taxation.

Lawmakers in France have voted to advance an amendment to the country’s tax laws that would impose levies on “unproductive wealth,” including some types of property and crypto holdings.

Centrist MP Jean-Paul Matteï filed the amendment on Oct. 22, with members of the National Assembly, the country’s lower house, passing the amendment with a vote of 163-150 late on Friday, with the backing of socialist and far-right MPs.

The measure will still have to survive the remainder of the parliamentary process as lawmakers look to pass a budget for 2026 and will have to pass through the Senate before it becomes law.

Matteï’s summary of the amendment said that the current real estate wealth tax law was “economically inconsistent” as it “excludes unproductive goods from its plate,” such as “gold, coins, classic cars, yachts, works of art.”

He claimed that the new tax would “encourage productive investment,” as the current system did not account for assets that could “contribute to the dynamism of the French economy.”

Crypto wrapped up in “unproductive” assets

The summary notes that “unproductive goods” would no longer be exempt under the law, and taxable assets have been expanded to include “non-productive” real estate, property such as “precious objects” and planes, and as well as “digital assets.”

Only those with “unproductive wealth” exceeding 2 million euros ($2.3 million) will be taxed, rising from the threshold of 1.3 million ($1.5 million) under current laws.

The tax rate is also changed, charging a flat rate of 1% on the taxable assets over the 2 million euro threshold.

The current real estate wealth tax is progressive, ranging from no tax on assets below 800,000 euros ($922,660) and jumping to 1.5% for assets above 10 million euros ($11.5 million).

The amendment to include digital assets has seemingly disappointed local crypto enthusiasts.

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Éric Larchevêque, the co-founder of crypto wallet maker Ledger, said on Saturday that the amendment “punishes all savers who wish to financially anchor themselves to gold and Bitcoin in order to protect their future.”

Source: Éric Larchevêque

“The political message is clear: ‘Crypto is equated with an unproductive reserve, not useful to the real economy,’” he added. “This is a major ideological error, but revealing of a fiscal shift: punishing the holding of value outside the fiat monetary system.”

Larchevêque stated that French crypto holders may be compelled to sell their assets to pay the tax if they have no other liquid assets, and expressed concern that the 2 million euros threshold could be subsequently lowered.

“There is certainly still a legislative process for this to be included in the 2026 PLF [budget], but the probability of it coming into effect on January 1 remains strong,” he said.

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