Individuals holding cryptocurrencies (Bitcoin, Ethereum, USDC) are not exempt from the annual reporting obligations for spring 2025. Crypto holders are thus subject to a dual declaration: (i) capital gains realized in 2024, and (ii) the holding of digital assets on foreign platforms, which are subject to specific obligations under penalty of severe financial sanctions.
Any individual realizing a capital gain by converting cryptocurrencies into euros or by purchasing goods or services with digital assets must declare these transactions to the tax authorities. Individuals who realize gains from the sale of cryptocurrencies in a non-professional capacity are generally subject to a single flat-rate levy (PFU), known as the “flat tax,” of 30%, which includes both income tax (12.8%) and social contributions (17.2%). When the reference tax income exceeds €250,000, the PFU may be adjusted by the Exceptional Contribution on High Incomes (CEHR) and the Differential Contribution on High Incomes (CDHR), increasing the tax rate to 37.2% (20% IR + 17.2% social contributions).
Certain individuals who engage in frequent transactions comparable to a professional activity (intensive trading) may be reclassified as professionals. The gains are then taxed according to the progressive income tax scale under the category of industrial and commercial profits (BIC). The same applies to individuals generating income through regular mining (cryptomining).
How to Calculate Capital Gains?
The calculation of taxable capital gains is based on a formula that can prove particularly complex:
Capital Gain = Disposal Price – (Total Acquisition Cost x (Disposal Price / Overall Portfolio Value before Disposal))
For the most complex calculations, it is essential to seek assistance with the declaration of crypto capital gains by consulting a tax lawyer.
Which Operations Are Exempt from Capital Gains Tax?
The mere holding of cryptocurrencies, even if their value increases, is not subject to tax. Similarly, certain operations, such as simple exchanges between cryptocurrencies (e.g., converting BTC to ETH), remain exempt, as they do not constitute a conversion into fiat currency. Disposals below the overall threshold of €305 in annual disposals are also exempt from tax.
This obligation is mandatory even if the account in question has not generated any capital gain during the year. Non-declaration of these accounts leads to penalties of up to €1,500 per undeclared account, and up to €10,000 if the account is located in a country considered non-cooperative.
Furthermore, since the Finance Act for 2025, in the event of a failure to declare, the administration may request all information or justifications from the taxpayer regarding the origin and acquisition methods of these crypto-assets and, in the absence of a response, automatically tax the income considered under gratuitous transfer duties at a rate of 60% with the application of an 80% penalty.
The 2024 income declaration period has been open since April 10, 2025. The deadlines are identical to those for the standard declaration and depend on the department:
Article published in La Dépêche du Midi, Legal Announcements
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