How to declare your cryptocurrencies in France?

Understanding Cryptocurrency Taxation: The Guide

French tax rules on cryptocurrencies have become much clearer over the years. The main legal basis is Article 150 VH bis of the French Tax Code (CGI), which governs how individuals are taxed on capital gains from digital assets.
Holders of Bitcoin, Ethereum, Solana, USDT, Avalanche, Cardano or other digital assets must now comply with strict reporting obligations, whether for their capital gains, their foreign accounts or their crypto-related income.

Failing to report digital assets can lead to a €750 fine per undeclared foreign account, raised to €1,500 where the accounts are worth more than €50,000, on top of back taxes and penalties on any unreported gains.
VV Avocat, a tax law firm in Toulouse, helps investors, individuals and entrepreneurs get their crypto reporting right, regularize their position and limit the risk of a tax reassessment.

1. Declaration of cryptocurrency capital gains

When should you declare your crypto assets?

A cryptocurrency holder makes a taxable disposal whenever they:

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

• or use their crypto assets to pay for goods or services.

The resulting gains must be reported as capital gains on digital assets.

These gains are subject to the flat tax (prélèvement forfaitaire unique, PFU) at an overall rate of 31.4% (12.8% income tax + 18.6% social contributions), according to the French tax administration’s guidance page “How to Declare Capital Gains on Digital Assets” (updated on 17 July 2026). The increase in the CSG (contribution sociale généralisée) introduced by the 2026 Social Security Financing Act already applies to gains realized in 2025 and reported in 2026, according to the administration’s 2026 income tax guide. Before that, the overall rate was 30% (social contributions of 17.2%).

Taxpayers may instead waive the PFU and elect for the progressive income tax scale by ticking box 3CN on their return. The election is global: it covers all of the household’s digital asset gains for the year, and it is separate from the election available for investment income (revenus de capitaux mobiliers).

What if you are a regular trader or miner?

Since 1 January 2023, the regime depends on how the transactions are carried out. Taxpayers who buy, sell or exchange digital assets under conditions similar to those of a professional (numerous and sophisticated transactions, tools and techniques used by professional traders), without this being their profession, are taxed under non-commercial profits (bénéfices non commerciaux, BNC). Income from mining and staking is also taxed as BNC.
Only a commercial business of buying and reselling digital assets falls under industrial and commercial profits (bénéfices industriels et commerciaux, BIC).

Under BNC, this means:

• tax at the progressive income tax rates rather than the PFU,

• social contributions on top,

• and a profit computed either with a 34% flat allowance (micro-BNC) or on actual expenses (déclaration contrôlée).

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

2. How to calculate capital gains on cryptocurrencies

The official calculation uses the so-called proportional method:

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

This method reflects the weight of each crypto asset in the overall portfolio at the time of sale.
After each disposal, the total acquisition cost is reduced by the portion already allocated to earlier disposals.

Illustrative example (hypothetical): an individual has invested €10,000 in total across several cryptocurrencies. When they sell part of their holdings for €5,000, the portfolio is worth €20,000. The capital gain is 5,000 - (10,000 × 5,000 / 20,000) = €2,500. At the 31.4% PFU, the tax comes to €785 (€320 of income tax and €465 of social contributions). For the next disposal, the total acquisition cost will be €7,500 (€10,000 minus the €2,500 already allocated).

The calculation can become complex where there are:

• multiple transactions on different platforms,

• sharp price swings,

• transfers between wallets or platforms.

3. Non-taxable transactions

Some transactions are expressly exempt from tax:

• Crypto-to-crypto exchanges (for example, BTC → ETH), as long as nothing is converted into euros.

• Small disposals: the exemption applies where the total disposal proceeds for the year (not the total gains) do not exceed €305.

• Simply holding digital assets without selling them.

On the other hand, cashing out (withdrawing in euros) or paying in crypto (buying goods or services) always triggers tax.

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 report these accounts to the French tax authorities.
The obligation covers all active accounts, even with no transactions or gains.

Penalties for non-declaration

• €750 fine per undeclared digital asset account (€125 per omission or inaccuracy),

• €1,500 per account (€250 per omission) where the foreign accounts are worth more than €50,000 at any time during the year, capped at €10,000 per return,

• and, in an audit, tax reassessments with late-payment interest and penalties, raised to 80% in case of fraudulent conduct or abuse of law (Article 1729 of the French Tax Code).

Since automatic exchange of information between countries became widespread (OECD Common Reporting Standard, CRS), the tax authorities can easily trace undeclared foreign accounts. The EU directive DAC 8 (Directive (EU) 2023/2226 of 17 October 2023) extends this system to crypto-asset service providers: Member States must obtain information from these providers and exchange it every year with the country where the customer is resident. According to the French tax authorities (DGFiP), this exchange comes into force in 2027. By matching this information against tax returns, the authorities will be able to identify undeclared cryptocurrencies.

5. How to declare your cryptocurrencies in France

Reporting cryptocurrencies for tax purposes rests on three main elements:

1. Declaration of accounts held abroad

Each account on a foreign platform must be reported on form 3916-bis (return for digital asset accounts opened, held, used or closed abroad), filed together with your annual income tax return. If you file online, these accounts are entered at the end of the process, in the section on foreign accounts; if you file on paper, use form 3916-3916 bis.

2. Calculation of capital gains or losses

You must attach the statement of disposals listing all your crypto transactions: conversion, sale, amount, date, purchase price and sale price. This statement is appendix form 2086, which sets out each taxable disposal and the calculation of the corresponding gain or loss.

3. Reporting the overall result

The net result (gain or loss) must be carried over to your main income tax return: box 3AN for a gain, box 3BN for a loss (form 2042 C). If you file online, the amount entered on form 2086 fills in these boxes automatically.
This figure determines your final tax bill.

6. Audits and reassessment risks

The French tax authorities now have advanced tracking tools:

• international cooperation,

• automatic cross-checking of bank accounts and platforms,

• on-chain flow analysis.

Failing to report gains or accounts exposes you to:

• heavy tax fines,

• penalties of up to 80%,

• and, in serious cases, tax fraud proceedings.

VV Avocat regularly helps taxpayers come forward voluntarily to regularize their position, avoid the maximum penalty and rebuild trust with the tax authorities.

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

The goal is not just to “declare”, but to build your wealth strategy around digital assets.

A tax lawyer can help you:

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

• plan ahead for future capital gains,

• optimize gifts or transfers of crypto-assets,

• secure your crypto accounting when setting up a business.