The Finance Committee of the French parliament has approved an extension of the country’s exit tax to cryptocurrencies from January 2027. The measure could also tax gains that investors have not yet realized by selling their assets.
France Wants to Tax Crypto Before It Is Sold
The Finance Committee of the French National Assembly approved on Thursday, October 8, a proposal to extend the country’s exit tax to cryptoassets from January 1, 2027. Unrealized gains could be taxed for households holding cryptoassets worth more than EUR 800,000.
The calculation would also include tokens held on foreign exchanges and in self-custody wallets.
The amendment was introduced by Communist MP Nicolas Sansu together with 16 other left-wing lawmakers. They argue that cryptoassets currently escape a tax that applies to shareholders holding assets of comparable value.
For stocks, the exit tax applies to people who have lived in France for at least six of the previous ten years. Payment can be deferred when moving within the European Union and may eventually be cancelled if the assets are held for another two to five years.
The tax rate for cryptoassets has not yet been specified. For shares, the effective rate is 31.4%, including social contributions. It therefore remains unclear how much crypto investors would actually have to pay.
Why Nothing Has Changed Yet
The following day, the committee rejected the revenue section of the budget by 31 votes to three, meaning that the adopted amendments lost their validity. Lawmakers must therefore submit and approve them again during the plenary debate, which began on Tuesday, October 13.
The revenue section is expected to be voted on on October 20, while the full budget is scheduled for a vote on November 17 before being sent to the Senate. Parliament has until December 10 to complete the process.
Other proposals are also under discussion, including a tax on conversions into stablecoins and mandatory reporting of wallets holding more than EUR 100,000, with fines of up to EUR 10,000 for non-compliance.
What Does the Proposal Mean for Investors?
For now, nothing. The measure would only affect large portfolios and only when a person leaves France. However, it opens the door to a broader debate over taxing gains before an asset is actually sold.
The key decisions will come during the October 20 vote and subsequent consideration by the Senate. Until then, the measure remains a proposal arising from budget negotiations rather than an enacted law.
