The French government proposes replacing the property wealth tax with a “non-productive wealth tax” that targets idle assets, including cryptocurrenciesluxury items and other unused real estate. According to Senator Sylvie Vermeillet, bitcoin will be classified as a non-productive asset in next year's national budget. Vermeillet's proposal is similar to the taxation of luxury goods and disused real estate.
<a target="_blank" href="https://www.fxleaders.com/news/2024/12/03/france-propose-tax-on-unrealized-crypto-gains/” rel=”nofollow noopener” target=”_blank”>French tax laws apply a flat 30% tax on cryptocurrency profits over €305. However, in the proposed 2025 tax law, even unrealized gains in cryptocurrencies are subject to tax. Under Vermeillet's proposal, assets in custody exceeding €800,000 will be subject to tax.
Failure to report an external account faces a fine of €1,500 per account, but cryptocurrency-to-cryptocurrency transactions are tax-free. The new tax proposal has already passed the Senate's preliminary vote, but the legislation is not yet final.
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ONLY IN: France to taxes <a target="_blank" href="https://twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>#bitcoin unrealized capital gains. pic.twitter.com/8zsehL05f4
– bitcoin Archive (@BTC_Archive) <a target="_blank" href="https://twitter.com/BTC_Archive/status/1863857014562037851?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>December 3, 2024
The French government seeks 'balanced taxation'
On December 3, French Senator Sylvie Vermeillet formally presented a proposal to classify bitcoin and cryptocurrencies as <a target="_blank" href="https://www.onesafe.io/blog/france-bitcoin-tax-cryptocurrency-compliance” rel=”nofollow noopener” target=”_blank”>non-productive assets in next year's budget. Like unused real estate and luxury items, unproductive assets like bitcoin and digital assets are subject to tax. French
Finance Minister Laurent Saint-Martin approves the proposal and says that exempting the main digital asset from taxes while taxing other economic assets is unfair.
The proposal aims to balance taxation between <a target="_blank" href="https://tradersunion.com/news/cryptocurrency-news/show/25881-france-targets-unrealized-crypto/” rel=”nofollow noopener” target=”_blank”>digital and physical assetscreating a “balanced tax system.” Once approved, cryptocurrency holders and investors should reevaluate their future holdings and investments. However, the proposal has some critics who say it may reduce market interest and increase price volatility.
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Total crypto market cap at $3.47 trillion on the daily chart: TradingView.com
No taxes on crypto-to-crypto trading
French tax laws impose taxes on profits made from purchases made with btc or other digital assets and sales of digital assets in euros. Under the current proposal, there are no taxes on crypto-to-crypto transactions, allowing investors and holders to diversify their holdings with instant tax obligations. According to its advocates and supporters, the new tax law will benefit cryptocurrency trading and expand market participation.
Image: Nomad Offshore Academy
The amendment tabled on November 18 specifies tax rates for next year's national budget, with holders paying taxes on assets over €800,000. While the new rule may seem simple, the reporting process may be overwhelming for some. Cryptocurrency holders must keep track of transactions such as loans, staking, and liquidity pools.
Cryptocurrency holders must report or face fines
The introduced amendment also requires French taxpayers to report any crypto accounts outside the country. Failure to file a complaint is subject to a fine of €750. And if the account has more than €50,000 in assets, the fine increases to €1,500.
Vermeillet's proposal also requires holders to annually file Cerfa form 3916-bis for tax reporting purposes. Taxpayers must file their tax returns annually, even if there is no recorded transaction involved. Authorities reserve the right to review individual tax records if the government suspects possible fraud.
Featured image of Alexander Spatari via Getty ImagesTradingView chart
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