In a significant move that signals growing regulatory clarity and investor-friendly policies, France is set to reduce the capital gains tax on Bitcoin and other cryptocurrencies from 36.2% to 30%, effective January 2025. This adjustment, part of an amendment to the 2019 budget bill recently approved by the French National Assembly’s finance committee, aligns digital asset taxation with that of other non-real estate financial investments.
The revised tax rate will bring cryptocurrency transactions in line with France’s broader flat tax system—known as the prélèvement forfaitaire unique (PFU)—which applies a uniform 30% rate to capital gains from stocks, bonds, and other movable assets. This change marks a pivotal shift in how France treats crypto investments, reinforcing its ambition to become a leading hub for blockchain innovation and digital finance in Europe.
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A Strategic Shift Toward Crypto-Friendly Regulation
France's evolving stance on cryptocurrency taxation reflects a deliberate strategy to foster innovation while maintaining financial oversight. Previously, crypto traders faced a complex and relatively high tax burden—up to 45% when social charges were included—making the market less attractive compared to other European jurisdictions.
However, in April 2025, the French government reclassified income from digital assets as movable capital gains, significantly streamlining the tax framework. Under this new classification, profits from buying and selling cryptocurrencies are now subject to the standard 30% flat tax, which includes both income tax and social contributions.
It's important to note that this favorable treatment does not extend to cryptocurrency mining operations. Mining income continues to be categorized as non-commercial profits (bénéfices non commerciaux) or industrial and commercial profits (bénéfices industriels et commerciaux), depending on the scale and nature of the activity. As such, miners may face progressive income tax rates and additional compliance requirements.
This nuanced approach demonstrates France’s effort to encourage retail and institutional investment in digital assets while ensuring that active crypto businesses remain properly regulated and taxed according to their economic impact.
PACTE Law: Laying the Foundation for a Digital Asset Economy
The upcoming tax reduction is just one component of a broader legislative initiative known as the Plan d’Action pour la Croissance et la Transformation des Entreprises (PACTE Act)—a comprehensive reform package introduced under President Emmanuel Macron’s administration. The PACTE law aims to modernize France’s business environment, simplify regulations, and promote technological innovation, including in the fintech and blockchain sectors.
One of the most impactful provisions of the PACTE Act is the establishment of a clear legal framework for Initial Coin Offerings (ICOs). In September 2025, the French Parliament passed regulations allowing the Autorité des Marchés Financiers (AMF), France’s financial markets regulator, to issue optional visas—or approvals—to ICO projects that meet strict transparency and investor protection standards.
Bruno Le Maire, France’s Minister of Economy and Finance, emphasized the importance of balancing innovation with accountability:
“This new legislation will allow the AMF to grant licenses to companies planning ICOs—but only to those projects that offer concrete safeguards for investors.”
To qualify for an AMF visa, issuers must submit detailed documentation about their project, including use of funds, technical specifications, team background, and risk factors. They are also required to provide clear, accessible information to potential investors, enabling informed decision-making.
While the visa system is voluntary, it provides a powerful signal of legitimacy in a space historically plagued by fraud and opacity. Projects with AMF approval gain greater credibility, potentially attracting institutional investors and enhancing market confidence.
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Why France Is Becoming a Crypto Haven in Europe
As one of Europe’s largest economies, France’s policy decisions carry significant weight in shaping regional trends. By introducing predictable tax rules and a transparent ICO framework, the country is positioning itself as a safe and attractive destination for blockchain entrepreneurs and crypto investors alike.
Several factors contribute to this emerging status:
- Regulatory Certainty: Unlike some jurisdictions where crypto regulations remain ambiguous, France has taken concrete steps to define legal boundaries.
- Investor Protections: The AMF’s oversight role ensures a baseline level of security for participants in token sales.
- Tax Efficiency: The 30% flat tax on crypto gains is competitive by European standards, especially when compared to countries with progressive rates exceeding 50%.
- Innovation Support: Government-backed initiatives and sandbox environments encourage startups to test new models without excessive regulatory risk.
These efforts reflect a forward-thinking vision: rather than stifling innovation through restrictive rules, France seeks to channel it through responsible frameworks that protect consumers while enabling growth.
Frequently Asked Questions (FAQ)
Q: When will the new 30% crypto tax rate take effect in France?
A: The reduced capital gains tax rate of 30% is scheduled to go into effect on January 1, 2025, pending final parliamentary approval of the full budget bill.
Q: Does the 30% tax apply to all cryptocurrency activities?
A: No. The 30% flat tax applies only to capital gains from buying and selling cryptocurrencies held as investments. Income from mining or running a crypto-related business is taxed differently, based on whether it's classified as non-commercial or commercial activity.
Q: What is the AMF visa for ICOs?
A: The AMF visa is an optional certification granted by France’s financial regulator to ICO projects that meet transparency and investor protection criteria. It is not mandatory but enhances credibility and trust.
Q: Are there any anti-money laundering (AML) requirements for crypto transactions in France?
A: Yes. Cryptocurrency service providers—including exchanges and wallet operators—must register with the AMF and comply with AML/KYC regulations to prevent illicit financial activities.
Q: How does France’s crypto tax compare to other EU countries?
A: France’s 30% flat rate is among the more competitive in Europe. Countries like Germany exempt crypto gains after one year of holding, while others like Portugal previously offered tax-free status (now under review). Overall, France offers a balanced approach combining simplicity and fairness.
Q: Can foreign investors benefit from France’s favorable crypto tax rules?
A: Tax obligations depend on residency status. Non-residents are generally taxed only on French-sourced income. However, individuals considering relocation or cross-border trading should consult a tax professional due to treaty implications.
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Conclusion
France’s decision to lower Bitcoin capital gains tax to 30% represents more than just a fiscal adjustment—it’s a strategic declaration of intent. By harmonizing crypto taxation with traditional financial assets and establishing clear rules for emerging fundraising mechanisms like ICOs, France is building a resilient, innovation-friendly digital economy.
As global regulators continue to grapple with how best to integrate blockchain technology into existing financial systems, France offers a compelling model: one rooted in balance, transparency, and long-term vision. For investors, entrepreneurs, and policymakers watching the space, the message is clear—France is open for crypto business.