| Assets concerned | Tax rates |
|---|---|
| Main residences (after 30% discount) | 20 to 37.2% |
| Secondary residences | 20 to 37.2% |
| Vacant housing | 20 to 37.2% |
| Building land | 20 to 37.2% |
| Cash and financial investments | 20 to 37.2% |
| Furnished goods and valuables | 20 to 37.2% |
| Cryptocurrency | 20 to 37.2% |
URGENT – France votes a new crypto tax! What it changes for you
The French Senate recently passed a new tax on unproductive wealth, which now includes cryptocurrency. This new tax is intended to expand the tax base by including digital assets considered unproductive. This measure mainly concerns households with assets exceeding EUR 2.57 million. Cryptocurrency holders will be required to report the value of their assets on January 1st of each year, including unrealized capital gains. This decision has generated many reactions, notably due to the potential impact on cryptocurrency investors.
What is unproductive wealth tax?
Unproductive wealth tax (IFI) is a new Senate proposal to replace the current property tax. It now includes a wider range of assets, including cryptocurrency. The assets involved include principal residences (after a 30 per cent discount), secondary residences, vacant housing, building land, cash, financial investments, furnished property, valuable items, vehicles, yachts, aircraft, and even literary, artistic and industrial property rights. This measure aims to tax assets that do not contribute directly to the real economy.
Impact on cryptocurrency holders
Cryptocurrency holders will be required to report the value of their assets on January 1st of each year, including unrealized capital gains. This means that even if you have not sold your cryptocurrency, you will have to declare their current value. This could force some investors to liquidate their positions to avoid high taxes. Moreover, losses in cryptocurrency cannot be deducted from taxes, unlike other types of investments such as real estate.
| Assets concerned | Tax rates |
|---|---|
| Main residences (after 30% discount) | 20 to 37.2% |
| Secondary residences | 20 to 37.2% |
| Vacant housing | 20 to 37.2% |
| Building land | 20 to 37.2% |
| Cash and financial investments | 20 to 37.2% |
| Furnished goods and valuables | 20 to 37.2% |
| Cryptocurrency | 20 to 37.2% |
https://business-crypto.org/wp-content/uploads/2025/01/Illustration-dun-portfolio-of-crypto-currency-with-es-1.webp
New tax regulations on crypto in France: what it changes for you
France recently voted a new crypto tax, which could have significant consequences for cryptocurrency holders. Investors will now have to provide accurate documentation of their crypto assetsincluding portfolios held on international platforms or Cold Wallets such as Ledger or Tangem. This new regulation introduces additional complexity, particularly as regards proof of ownership and the calculation of the exact value of assets.
The complexity of the documentation required
Crypto investors will have to provide a multitude of documents to justify their assets. This includes documented evidence of personal savings, stock market investments, wallets, movements on wallets, investment tokens, larger holdings, total investment in fiat, as well as evidence of self-employed wages and income. This documentation requirement is highly intrusive and represents a significant workload for investors, especially those who use various crypto services and products.
The impact of MiCA regulation
The MiCA (Markets in Crypto-Assets) regulation now imposes strict identity checks on platforms such as Binance. Initially, these audits were limited to questions about the origin of the funds, but they now include approved application documentation. This regulation applies to all PSAN (Digital Assets Services Providers) platforms since 1 January, making the process even more binding for users.
| Document type | Description |
|---|---|
| Proof of personal savings | Documentation on how savings have been built over the years |
| Evidence of stock exchange investments | Documents justifying investments in stock exchanges |
| Proof of Wallets | Documents on Wallets and Movements |
| Proof of wages and income | Wages and self-employed income |
https://business-crypto.org/wp-content/uploads/2025/01/Illustration-reprysentant-un-portfolio-de-crypto-currency-with.webp
URGENT – France votes a new crypto tax! What it changes for you
France is voting for a new cryptocurrency tax, which could have a significant impact on investors. What is called a Joint Joint Committee, composed of senators and deputies, is seeking a compromise between the two versions of the text. In general, the National Assembly has the last word in case of disagreement, but for the time being, the two parties are not yet in agreement. Unproductive wealth tax will only affect a handful of people and may not be fully adopted. This raises questions about the inclusion of existing tax niches and the overall impact on the crypto ecosystem.
The comparison between Europe and the United States is quite worrying. As the United States advances in the development of cryptoactives, Europe seems to be holding back with strict regulations and taxation. This does not encourage investment and enterprise development in the ecosystem. Enactment of cryptocurrency will be very slow and difficult if such laws are put in place.
France is the most taxed country in the world, and that scares away capital and investors. Even medical professionals come to the United States to develop their projects. In California, although taxes are high, the state of mind, the sun, and openness attract entrepreneurs. Julien Roman, the author of the video, explains that he is ready to pay taxes, but only if he receives something in return.
Joint Committee
The Joint Joint Committee, composed of senators and deputies, is seeking a compromise between the two versions of the text on the tax on cryptocurrency. In general, the National Assembly has the last word in case of disagreement, but for the time being, the two parties are not yet in agreement. Unproductive wealth tax will only affect a handful of people and may not be fully adopted. This raises questions about the inclusion of existing tax niches and the overall impact on the crypto ecosystem.
Comparison between Europe and the United States
The comparison between Europe and the United States is quite worrying. As the United States advances in the development of cryptoactives, Europe seems to be holding back with strict regulations and taxation. This does not encourage investment and enterprise development in the ecosystem. Enactment of cryptocurrency will be very slow and difficult if such laws are put in place.
France, the world’s most taxed country
France is the most taxed country in the world, and that scares away capital and investors. Even medical professionals come to the United States to develop their projects. In California, although taxes are high, the state of mind, the sun, and openness attract entrepreneurs. Julien Roman, the author of the video, explains that he is ready to pay taxes, but only if he receives something in return.
| Aspects | Europe | United States |
|---|---|---|
| Regulation | Strict | Less strict |
| Taxation | High | Moderate |
| Adoption of cryptocurrency | Slot | Quick |
| Investment | Brake | Promoted |
https://business-crypto.org/wp-content/uploads/2025/01/Une-illustration-montrant-une-balance- entre-des.webp
FAQ
What is Unproductive Capital Tax (IFI)?
What is Unproductive Capital Tax (IFI)?
Tax on unproductive wealth (IFI) is a new proposal by the French Senate to replace the current property tax. It now includes a wider range of assets, including cryptocurrency, and aims to tax assets that do not directly contribute to the real economy.
What assets are covered by the IFI?
What assets are covered by the IFI?
The assets covered by the IFI include principal residences (after a 30% discount), secondary residences, vacant housing, building land, liquidity, financial investments, furnished goods, valuables, vehicles, yachts, aircraft, and even literary, artistic and industrial property rights.
How does the IFI affect cryptocurrency holders?
How does the IFI affect cryptocurrency holders?
Cryptocurrency holders will be required to report the value of their assets on January 1st of each year, including unrealized capital gains. This means that even if you have not sold your cryptocurrency, you will have to declare their current value. Losses in cryptocurrency cannot be deducted from taxes, unlike other types of investments.
What are the tax rates for the assets covered by the IFI?
What are the tax rates for the assets covered by the IFI?
The tax rates for the assets covered by the IFI range from 20% to 37.2%. This includes principal residences, secondary residences, vacant housing, building land, cash, financial investments, furnished property, valuables, and cryptocurrency.
What documents should be provided by cryptocurrency investors?
What documents should be provided by cryptocurrency investors?
Cryptocurrency investors must provide a multitude of documents, including evidence of personal savings, stock exchange investments, wallets and movements, tokens invested, larger holdings, total fiat invested, as well as evidence of self-employed wages and income.
What is MiCA regulation and how does it affect cryptocurrency users?
What is MiCA regulation and how does it affect cryptocurrency users?
The MiCA (Markets in Crypto-Assets) regulation requires strict identity checks on platforms such as Binance. It includes approved documents to load on the application and applies to all PSAN (Digital Assets Services Providers) platforms since January 1, making the process more user-friendly.
What is the Joint Joint Committee and what is its role in the tax on cryptocurrency?
What is the Joint Joint Committee and what is its role in the tax on cryptocurrency?
The Joint Joint Committee is composed of Senators and Members of Parliament and seeks a compromise between the two versions of the cryptocurrency tax text. In general, the National Assembly has the last word in case of disagreement, but for the time being, the two parties are not yet in agreement.
How does France compare to the United States in terms of regulation and taxation of cryptocurrency?
How does France compare to the United States in terms of regulation and taxation of cryptocurrency?
France has strict regulations and taxation on cryptocurrency, which hinders investment and the development of companies in the ecosystem. In comparison, the United States has less stringent regulations and faster adoption of cryptocurrency, thereby encouraging investment.