France Proposes Stricter Crypto Tax Rules in 2027 Budget Amendments

French lawmakers have introduced a series of significant amendments to the 2027 budget proposal, targeting the taxation and reporting requirements for digital asset holders. The legislative push aims to tighten oversight on the cryptocurrency sector while providing new mechanisms for loss offsets. Key provisions include the expansion of capital gains taxes to stablecoin exchanges and the introduction of an exit tax for high-net-worth individuals relocating their tax residency. Although the Finance Committee of the National Assembly initially rejected the revenue section of the budget on October 9th, these amendments remain a central point of discussion as the legislative process continues.

Taxation on Stablecoins and Exit Regulations

One of the most impactful changes proposed is the extension of the current 31.4% capital gains tax to transactions involving the exchange of Bitcoin for stablecoins. This rule specifically applies to tokens categorized as electronic money tokens (EMTs) under the Markets in Crypto-Assets (MiCA) framework, such as USDC. Currently, crypto-to-crypto trades are often tax-deferred in many jurisdictions, but this amendment would treat such swaps as taxable events. Additionally, lawmakers have proposed an exit tax for individuals holding digital assets valued at over 800,000 euros who choose to move their tax residency out of France, a move designed to prevent capital flight from the domestic market.

New Declaration Requirements and Loss Carry-Forwards

The proposed legislation also introduces stricter transparency measures for self-custody holdings. Investors holding at least 100,000 euros in private wallets would be required to declare these assets to the authorities. Failure to comply with this reporting mandate could result in a maximum penalty of 10,000 euros. However, the proposal does offer some relief for investors in the form of updated loss-handling rules.

• Self-custody assets over €100,000 must be declared to tax authorities.
• Non-compliance penalties are capped at €10,000 per violation.
• Investors will be permitted to carry forward capital losses for a period of 10 years, allowing for better long-term tax planning.

Current Status of the Legislation

Despite the breadth of these proposals, they have not yet been codified into law. On October 9th, the Finance Committee of the National Assembly rejected the revenue section of the budget by a vote of 31 to 3, necessitating a resubmission of the relevant amendments. The rejected section was originally scheduled for a full assembly vote on October 20th, but the timeline is now subject to adjustment as lawmakers refine the text. As the French government seeks to balance fiscal goals with the growth of the digital economy, the final version of the 2027 budget will be closely watched by the global crypto community.

The outcome of these deliberations will determine the future regulatory environment for Bitcoin and other digital assets within the European Union's second-largest economy. Stakeholders are advised to monitor the resubmission of these amendments as the budget discussions progress through the National Assembly.