France taxes Bitcoin gains at a flat 30% PFU (12.8% income tax + 17.2% social charges), with an option to use the progressive scale for low earners. Unique portfolio-fraction calculation method. Full guide to French crypto tax rules in 2026.
France has one of the clearest cryptocurrency tax frameworks in Europe, built around the Prélèvement Forfaitaire Unique (PFU) — the flat tax — introduced in 2018 and refined by specific crypto legislation since 2019. For most French Bitcoin holders, the tax picture is straightforward: sell Bitcoin at a gain, pay 30%.
But there are important nuances. The option to use the progressive income tax scale instead of the flat rate, the special treatment for professional traders, the rules for habitual traders, and the distinction between Bitcoin and DeFi all affect what you actually owe. This guide covers everything French HODLers need to know in 2026.
Under Article 150 VH bis of the French General Tax Code, gains from selling digital assets by private individuals are subject to the PFU at 30%, composed of:
The PFU applies to net annual gains — your total gains minus your total losses for the year. You calculate all your crypto disposals across the year, net them together, and apply 30% to any positive result.
| Element | Rate |
|---|---|
| Income tax component | 12.8% |
| Social contributions | 17.2% |
| Total PFU | 30% |
| Annual exemption | None (but €305 de minimis threshold) |
If your total digital asset disposals for the year are €305 or less in proceeds (not gain), you are fully exempt.
This is a gross proceeds threshold, not a gains threshold. If you sold Bitcoin for €300 total across the entire year — regardless of how much profit you made — no tax and no reporting required.
Above €305 in total sales: full reporting required and the PFU applies to net gains.
French taxpayers who are in a low income tax bracket can opt out of the flat tax and use the barème progressif (progressive income tax scale) instead. This makes the crypto gain part of your total taxable income, taxed at your marginal rate.
2026 progressive income tax brackets (individual filer):
| Annual taxable income | Rate |
|---|---|
| Up to €11,520 | 0% |
| €11,521 – €29,373 | 11% |
| €29,374 – €83,988 | 30% |
| €83,989 – €180,648 | 41% |
| Above €180,648 | 45% |
Note: Using the progressive scale still triggers the 17.2% social contributions on top of income tax. So even at the 0% income tax bracket, you still owe 17.2% in social charges on crypto gains.
When the scale beats the PFU: If your total income (including crypto gains) stays in the 0% or 11% bracket, the progressive scale is better:
Practical example: A student with €8,000 in salary and €5,000 in Bitcoin gains. Total income: €13,000 — in the 11% bracket.
The option is elected on your income tax return (déclaration de revenus) by checking the relevant box. You must elect it explicitly — the PFU applies by default.
The French tax authority (Direction Générale des Finances Publiques — DGFiP) has not issued comprehensive DeFi guidance. Practitioners generally advise:
France uses a distinctive calculation method — not FIFO, not FIFO, but a portfolio-fraction formula:
Gain = Sale Proceeds − (Total Portfolio Cost × (Sale Proceeds / Total Portfolio Value))
Breaking this down:
Example:
Implications of the portfolio method:
This is more complex than per-asset tracking but can be beneficial if your portfolio has mixed gains and losses.
Within the PFU framework:
If the DGFiP determines you are a professional or habitual trader (opérateur habituel), your gains are no longer subject to the 30% PFU. Instead they are taxed as BNC (Bénéfices Non Commerciaux) — non-commercial profits at your progressive income tax rate, potentially reaching 45% plus social contributions.
Factors that suggest professional/habitual trader status:
The practical risk: Most standard HODLers and even active investors are not classified as professional traders. But frequent day-traders with high volumes should be aware of this risk and may want to consult a tax professional (expert-comptable or avocat fiscaliste).
Bitcoin mining income is classified as BNC (Bénéfices Non Commerciaux) and taxed at progressive income tax rates — NOT subject to the 30% PFU at the time of receipt.
At time of receipt: Fair market value of mined Bitcoin is taxable income under BNC rules. At time of later sale: The gain from when you received the Bitcoin to when you sold it is then subject to the standard 30% PFU (or progressive scale), using the receipt-day value as your cost basis.
Miners can deduct expenses: electricity, hardware depreciation, internet costs.
Annual tax return (Déclaration de revenus — Form 2042):
Form 2086 — Cessions d'actifs numériques: The French tax authority introduced this specific form for crypto reporting. You list each transaction with:
Filing deadline: Mid-to-late May (varies by département for online filing; online filing deadlines extend into June by zone).
Foreign accounts: If you hold crypto on foreign exchanges, you must declare those accounts on Form 3916-bis (Comptes étrangers d'actifs numériques). Penalty for non-declaration: €750 per undeclared account (or 2.5% of account value if higher).
French residents must declare any digital asset account held with a foreign provider (exchange, custodian, etc.) each year, even if no transactions occurred.
This includes: Binance, Coinbase, Kraken, and any other non-French platform.
Penalty for omission: €750 per account, or 2.5% of the account value if higher. Willful omission can trigger fraud penalties.
This is separate from the tax on gains — it's a mandatory disclosure requirement regardless of whether you made money.
If your total income (salary + crypto gains) stays below €29,373, the progressive scale beats the 30% PFU. This is particularly valuable for students, part-time workers, and low-income years.
If you anticipate a year with lower salary income (sabbatical, early retirement, parental leave), consider realizing Bitcoin gains in that year to benefit from lower progressive rates.
Unlike Germany (0% after 1 year) or the US (preferential long-term rates), France offers no holding-period benefit. The 30% applies whether you held Bitcoin for one day or ten years. Pure HODLing only benefits you by deferring — not reducing — the tax.
If you hold multiple cryptocurrencies and some are at a loss, the portfolio-fraction method automatically incorporates those losses when you sell. You don't need to harvest losses separately.
Borrow against your Bitcoin through platforms offering such services in Europe. No sale, no disposal, no taxable event. The cost of borrowing may be worthwhile on large positions.
Gifting Bitcoin to family members triggers gift tax (droits de donation), which may be lower than capital gains tax on large positions. Each parent can gift up to €100,000 per child every 15 years tax-free. However, the recipient inherits your cost basis, so the gain is deferred, not eliminated.
Not declaring foreign accounts: Every foreign exchange account must be reported on Form 3916-bis. Many French holders on Binance or Coinbase miss this entirely.
Using FIFO instead of the portfolio formula: French law requires the specific portfolio-fraction method. Using FIFO or specific lot identification is incorrect and may understate or overstate your gains.
Not tracking total portfolio value at each sale: The formula requires knowing the total value of all your digital assets at the exact moment of each sale. Without this data, you cannot correctly calculate your gain. Tax software like Waltio, CoinTracking (FR-configured), or Koinly can automate this.
Assuming long-term holding reduces tax: Unlike Germany or the US, France's 30% applies regardless of holding period. There is no tax benefit to holding Bitcoin for years from a rate perspective.
| Software | Notes |
|---|---|
| Waltio | France-specific, built for the Form 2086 portfolio formula |
| Koinly | Supports French tax reporting, configurable |
| CoinTracking | Manual configuration for French method |
| Cryptio | Professional/institutional focus |
Waltio is the most popular choice for French retail holders given its native support for Form 2086 and the portfolio-fraction calculation method.
Is Bitcoin legal in France? Yes. Bitcoin and other cryptocurrencies are fully legal. France was one of the first EU countries to establish a comprehensive regulatory framework (PSAN — Prestataires de Services sur Actifs Numériques — for exchange registration).
Does MiCA affect my taxes? The EU's Markets in Crypto-Assets regulation (MiCA), which France implements, governs exchange licensing and market conduct — not individual taxation. Your tax obligations are still governed by French domestic law.
What if I traded crypto in previous years and didn't report? The French tax authority can audit returns up to 3 years back for unintentional errors, and 6 years for fraud. Voluntary correction (déclaration rectificative) before being audited is treated more favorably than discovered non-compliance.
Are crypto-to-crypto trades taxable? Yes. Exchanging Bitcoin for any other cryptocurrency is treated as a disposal of Bitcoin at market value, triggering the portfolio-fraction gain calculation.
Do I pay tax when I receive a crypto airdrop? The DGFiP has not issued specific guidance on airdrops. Conservative treatment: value as BNC income at receipt if the airdrop has value and you actively participated to receive it.
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