How to declare your cryptocurrencies in France?

Understanding Cryptocurrency Taxation – The Guide

Cryptocurrency taxation in France has become considerably clearer over the years.
Holders of Bitcoin, Ethereum, Solana, USDT, Avalanche, Cardano, or other digital assets must now comply with strict reporting obligations, whether for their capital gains, foreign accounts, or crypto-related income.

Failure to declare digital assets can result in fines of up to €10,000 per undeclared account, or even more in case of repeat offenses.
The VV Avocat firm, a tax lawyer in Toulouse, assists investors, individuals, and entrepreneurs to secure their crypto declarations, regularize their situation, and avoid any risk of tax reassessment.

1. Declaration of cryptocurrency capital gains

When should you declare your crypto assets?

Whenever a cryptocurrency holder:

• sells digital assets for euros (or any other fiat currency),

• or uses their crypto assets to purchase goods or services, they are performing a taxable transaction.

Gains from such disposal must be declared under the category of capital gains on digital assets.

These capital gains are subject to the flat-rate withholding tax (PFU) — also known as flat tax — at an overall rate of 30% (12.8% income tax + 17.2% social contributions).

Please note:
If you have sold your cryptocurrencies at a loss, you can declare a capital loss. This can be deducted from future gains over the next 10 years.

What if you are a regular trader or miner?

Taxpayers who engage in regular trading, mining, or staking activities may be reclassified as professionals.
In this case, their gains no longer fall under the PFU but under the regime of industrial and commercial profits (BIC).

This implies:

• comprehensive accounting,

• social obligations,

• and a calculation method distinct from that of individuals.

A crypto tax lawyer can help you determine the correct regime, avoid reclassification, and regularize your status before an audit.

2. How to calculate capital gains on cryptocurrencies

The official calculation is based on the so-called proportional method:

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

This method takes into account the weight of each crypto asset in the overall portfolio at the time of sale.
It can become complex in cases of:

• multiple transactions on different platforms,

• significant price variations,

• transfers between wallets or platforms.

Advice:
Consulting a tax lawyer specializing in digital assets helps avoid calculation errors and ensures the compliance of your declaration, especially in cases of significant capital gains.

3. Non-taxable transactions

Certain transactions are expressly exempt from taxation:

• Crypto-to-crypto exchanges (for example: BTC → ETH) as long as no conversion to euros occurs.

• Low-value disposals, below the annual threshold set by law (€305).

• The mere holding of digital assets without sale.

However, cash-out (withdrawing in euros) or crypto payments (purchase of goods or services) systematically trigger taxation.

4. Declaring foreign crypto accounts

An obligation for all French taxpayers

Any French tax resident holding cryptocurrencies on a foreign exchange platform (Binance, Kraken, Coinbase, Bybit, etc.) must declare these accounts to the French tax authorities.
This obligation applies to all active accounts, even without transactions or capital gains.

Penalties for non-declaration

• €1,500 fine per undeclared account,

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

• and in case of an audit, the possibility of an ex officio taxation of 60% of unjustified amounts, increased by 80% in case of proven fraud.

Since the generalization of automatic data exchange between states (OECD – CRS standard), the administration can easily trace undeclared foreign accounts.

5. How to declare your cryptocurrencies in France

The tax declaration for cryptocurrencies is based on three main elements:

1. Declaration of accounts held abroad

Each account on a foreign platform must be declared via the dedicated form during your annual income tax declaration.

2. Calculation of capital gains or losses

You must attach the disposal statement detailing all your crypto operations → conversion, sale, amount, date, purchase price, and disposal price.

3. Reporting the overall result

The net result (gain or loss) must be reported in your main income tax declaration.
This data determines your final taxation.

Note:
Specialized tools (Waltio, Koinly, Cointracking, etc.) can facilitate the generation of the annex report, but only a tax law professional can guarantee the legal validity of the chosen method.

6. Audits and reassessment risks

The French tax authorities now have advanced traceability means:

• international cooperation,

• automatic cross-referencing of bank accounts and platforms,

• on-chain flow analysis.

Failure to declare capital gains or accounts exposes one to:

• heavy tax fines,

• surcharges of up to 80%,

• and, in serious cases, proceedings for tax fraud.

The VV Avocat firm regularly assists taxpayers to spontaneously regularize their situation, avoid maximum penalties, and restore trust with the administration.

7. What tax strategy should you adopt for your crypto assets?

The objective is not just to “declare,” but to structure your asset strategy around digital assets.

A tax lawyer can help you to:

• choose the appropriate tax regime (individual, professional, holding, company),

• anticipate future capital gains,

• optimize donations or transfers of crypto-assets,

• secure crypto accounting in case of business creation.