Bitcoin and Taxation in France: A New Trap for Wealthy Investors
A new French amendment proposes taxing cryptocurrencies as “unproductive wealth,” equating them to assets like yachts, gold, and art. This move sparks strong debate among investors and policymakers.
A Shift in Wealth Taxation
Last Friday, the National Assembly reached a symbolic turning point. With 163 votes in favor and 150 against, deputies approved an amendment redefining how wealth is taxed in France.
“Economic inconsistency” — Jean-Paul Matteï described the previous tax regime, which exempted certain unproductive assets from wealth tax.
Crypto Assets Targeted
The amendment places Bitcoin, Ethereum, and other digital assets in the same category as yachts, gold, collectible cars, and works of art. According to Matteï, these forms of wealth do not contribute to the “dynamism of the French economy” and should therefore face fiscal discouragement.
Taxation Details
The proposal introduces a 1% flat tax on unproductive wealth exceeding 2 million euros. This differs from the progressive system currently used for real estate. For crypto investors, it marks a major shift — previously, only capital gains on sales were taxed, but now large holdings themselves could incur an annual levy.
Author’s Summary
This reform could reshape France’s crypto landscape, making digital wealth management more complex and costly for affluent investors.