Cryptocurrency Declaration: Your Tax Obligations in 2026

Understanding Cryptocurrency Taxation in France

Holders of cryptocurrencies such as Bitcoin, Ethereum, USDC, or Solana must now comply with strict reporting obligations.
Since the 2019 Finance Act, reinforced by recent texts, France requires the annual declaration of capital gains and the declaration of accounts held on foreign platforms.
These rules apply to both French residents and English-speaking expatriates living in France, who must comply with French tax legislation.

Failure to declare digital assets exposes one to heavy penalties, which can reach €10,000 per undeclared account.
The VV Avocat firm, a tax lawyer in Toulouse, assists individuals and investors in securing their crypto declarations and avoiding any risk of tax reassessment.

Declaration of Capital Gains from Cryptocurrency Disposals

Any person who converts cryptocurrencies into euros or uses them to purchase a good or service must declare the capital gain realized.
These gains are subject to the single flat-rate levy (PFU), also known as the “flat tax,” at a rate of 30% (12.8% income tax + 17.2% social contributions).

Tax Rate and Exceptions

For taxpayers with a tax reference income exceeding €250,000, additional contributions may bring the total taxation to 37.2%.
Taxpayers engaged in intensive trading or regular mining activities may be reclassified as professionals: their gains then fall under the regime of industrial and commercial profits (BIC).

How to Calculate Capital Gains?

The calculation is performed using the following formula:

Capital Gain = Selling Price – (Total Acquisition Cost × (Selling Price / Overall Portfolio Value Before Sale))

This calculation can quickly become complex, especially in the case of multiple transactions across different platforms.
Engaging a tax lawyer helps avoid calculation errors and ensures the declaration’s compliance.

Which Operations are Exempt?

Certain operations remain non-taxable:

• Exchanges between cryptocurrencies (e.g., BTC → ETH conversion);

• Sales under €305 per year;

• The mere holding of digital assets without sale.

Declaration of Foreign Crypto Accounts

Individuals holding accounts on platforms located outside France (Binance, Kraken, Coinbase, etc.) must declare them even without capital gain.
Failure to declare this results in:

• A fine of €1,500 per undeclared account;

• €10,000 if the account is in a non-cooperative country.

Since the 2026 Finance Act, in case of non-declaration, the administration can demand all proof of origin of funds and, failing that, apply ex officio taxation at 60% with an 80% penalty.

Which Forms to Use?

For the 2026 declaration, three forms must be completed depending on the situation:

• Form No. 3916-bis: for accounts held on foreign platforms.

• Appendix No. 2086: to detail the calculation of capital gains or losses.

• Form No. 2042 C: to report the result on the main declaration.

A tax lawyer specializing in digital assets can help you complete these documents in accordance with your tax profile.

2026 Tax Calendar: Key Dates

The filing deadlines for the 2024 income tax declaration are:

• May 20, 2026: paper declaration;

• May 22, 2026: departments 01 to 19 and non-residents;

• May 28, 2026: departments 20 to 54;

• June 5, 2026: departments 55 to 976;

• End of July 2026: receipt of the 2026 tax assessment notice.

Risks of Non-Declaration

Failure to declare capital gains or foreign accounts can lead to:

• Tax fines;

• Ex officio taxation on unjustified amounts;

• Surcharges and penalties up to 80%;

• In serious cases, criminal proceedings for tax fraud.

International cooperation between tax administrations now makes it very difficult to conceal digital assets.