How France Taxes Crypto in 2026

France taxes crypto gains for occasional investors at a flat 30% rate under the Prélèvement Forfaitaire Unique (PFU), composed of 12.8% income tax and 17.2% social contributions. Since 2024, taxpayers may instead elect the progressive income tax scale (barème progressif), which can reduce the effective rate if their marginal bracket falls below 12.8%. France mandates the PMPA weighted average cost basis method — FIFO and LIFO are not permitted.

PFU: The 30% Flat Tax Explained

The PFU, also called the "flat tax," applies by default to all capital gains realized by occasional crypto investors in France. It was introduced for financial income broadly in 2018 and extended explicitly to digital assets (actifs numériques) through Article 150 VH bis of the Code Général des Impôts (CGI).

The 30% breaks down as follows:

12.8% income tax (impôt sur le revenu)
17.2% social contributions (prélèvements sociaux), comprising CSG (9.2%), CRDS (0.5%), and solidarity levy (7.5%)

The PFU is applied to the net gain from all crypto dispositions aggregated over the calendar year. If the aggregate result is a net loss, it cannot be carried forward or offset against other income categories under the PFU regime.

Opting for the Progressive Scale (Barème Progressif)

Since the 2024 tax year, French taxpayers may elect to apply the progressive income tax rates instead of the flat 12.8% income tax component. Under this option:

The 12.8% flat income tax is replaced by the taxpayer's marginal income tax bracket (0%, 11%, 30%, 41%, or 45%)
The 17.2% social contributions still apply regardless of the election
The election applies to all financial income for the year, not just crypto — it covers dividends, interest, and other capital gains as well

This option is particularly beneficial for taxpayers whose marginal rate falls at 0% or 11%, resulting in a total effective rate of 17.2% or 28.2% respectively, compared to 30% under the PFU. Taxpayers in the 30% bracket or higher gain no advantage and should remain on the PFU.

The election is made annually on the income tax return (Déclaration 2042) by checking the appropriate box. It is irrevocable for that tax year but does not bind future years.

The PMPA Method: France's Mandatory Cost Basis Calculation

France is unique among major economies in requiring a specific cost basis method by law. The Prix Moyen Pondéré d'Acquisition (PMPA) — weighted average cost — is the only permitted method for calculating crypto capital gains. Unlike the US or Germany, French taxpayers cannot use FIFO, LIFO, HIFO, or specific identification.

How PMPA Works

The PMPA calculates a single average cost per unit across your entire holdings of a given asset. The formula is:

PMPA = Total acquisition cost of all units held ÷ Total number of units held

Every time you sell (or otherwise dispose of) crypto, the gain is calculated using the PMPA at the moment of sale, not the cost of any specific lot. This means per-lot tracking is irrelevant — only the running weighted average matters.

PMPA Gain Calculation Formula

The official formula for calculating the taxable gain on a crypto disposition in France is:

Gain = Sale Price − (PMPA × Quantity Sold)

More precisely, as defined in Article 150 VH bis CGI:

Gain = Selling Price − (Total Acquisition Cost of Portfolio × Selling Price ÷ Total Portfolio Value)

This formula accounts for partial sales by prorating the acquisition cost based on the proportion of the portfolio being sold.

PMPA Example

Suppose you make the following purchases of Bitcoin:

Buy 0.5 BTC at €30,000 per BTC → €15,000 cost
Buy 0.3 BTC at €40,000 per BTC → €12,000 cost
Buy 0.2 BTC at €50,000 per BTC → €10,000 cost

Your total holdings: 1.0 BTC, total cost: €37,000. Your PMPA = €37,000 ÷ 1.0 = €37,000 per BTC.

If you sell 0.4 BTC at €55,000 per BTC (sale proceeds: €22,000):

Cost basis for the sale: 0.4 × €37,000 = €14,800
Taxable gain: €22,000 − €14,800 = €7,200
Tax at 30% PFU: €7,200 × 0.30 = €2,160

After the sale, your remaining PMPA stays at €37,000 per BTC for the 0.6 BTC still held, until your next acquisition changes the weighted average.

Taxable Events in France

Not all crypto transactions trigger taxation. Here is how French tax law categorizes common crypto activities:

Taxable Dispositions

Selling crypto for euros or any fiat currency — triggers capital gains tax under PFU
Selling crypto for stablecoins pegged to fiat (e.g., USDT, USDC, EUROC) — the French tax authority (DGFiP) treats fiat-pegged stablecoins as a conversion to fiat, making this a taxable event
Using crypto to purchase goods or services — treated as a disposition at fair market value

Non-Taxable Events

Crypto-to-crypto swaps (non-stablecoin) — exchanging BTC for ETH, for example, is generally not a taxable event in France, as no fiat conversion occurs. This treatment is based on the Article 150 VH bis framing, though complex DeFi scenarios may receive further AMF and DGFiP guidance
Transferring crypto between your own wallets — not a disposition
Receiving crypto as a gift — the recipient's cost basis is the donor's PMPA; gift tax rules apply separately

Special Income Categories

French tax law distinguishes between occasional investors and professional activity:

Occasional investors: PFU regime applies (as described above)
Professional/habitual traders: Gains are classified as Bénéfices Industriels et Commerciaux (BIC), subject to the trader's professional income tax rates and social charges. The DGFiP evaluates factors including trade frequency, portfolio size, use of leverage, and whether trading constitutes a primary income source
Mining income: Classified as Bénéfices Non Commerciaux (BNC) — non-commercial income. Taxed at the miner's marginal income tax rate when the crypto is received, with cost basis set at the fair market value at the time of receipt
Staking rewards: Treated as income when received, with a cost basis equal to the fair market value at the time of receipt. Subsequent disposition gains are computed using the PMPA method

Filing Requirements

French crypto taxpayers must file specific forms as part of their annual income tax declaration:

Déclaration 2086: Crypto Capital Gains

Form 2086 (Déclaration des plus-values de cession d'actifs numériques) is the dedicated form for reporting crypto dispositions. It requires:

Each individual transaction: date, type of asset, quantity sold, sale price, PMPA at time of sale, and calculated gain or loss
Aggregate net gain or loss for the year
The result carries to your main Déclaration 2042

Cerfa 3916-bis: Foreign Exchange Account Declaration

French tax residents must declare all accounts held on crypto platforms established outside of France using Form 3916-bis. This includes accounts on exchanges like Coinbase (US), Binance (Malta/various), Kraken (US), and any other non-French platform where you hold or have held digital assets during the tax year.

Failure to file Form 3916-bis carries penalties of €750 per undeclared account, rising to €1,500 for accounts held in non-cooperative jurisdictions. For accounts with a value exceeding €50,000, the penalty increases to 5% of the account balance with a minimum of €750.

Key Filing Deadlines

The annual income tax declaration, including Forms 2086 and 3916-bis, is due in May or June depending on your department of residence. The DGFiP publishes exact deadlines each year, typically with staggered dates by geographic zone.

Regulatory Environment: AMF, MiCA, and CRS 2.0

France has positioned itself as a leader in crypto regulation within the European Union, with several regulatory frameworks converging in 2026:

AMF and CASP Licensing

The Autorité des Marchés Financiers (AMF) oversees crypto service provider registration in France. Since 2019, crypto platforms operating in France have been required to register as Prestataires de Services sur Actifs Numériques (PSAN). As MiCA (Markets in Crypto-Assets Regulation) takes full effect across the EU, PSANs transition to the harmonized Crypto-Asset Service Provider (CASP) licensing regime. France is among the EU member states with the highest number of approved CASPs, reflecting the AMF's proactive approach.

MiCA Compliance

MiCA, effective from December 30, 2024, for the full scope of crypto-asset services, standardizes licensing, consumer protection, and market integrity rules across the EU. French platforms already registered as PSANs benefit from a transitional period but must obtain full CASP authorization to continue operating. MiCA does not directly change French tax rules but reinforces reporting obligations that indirectly support tax compliance.

CRS 2.0 and DAC8

France, as a G7 and OECD member, participates in CRS 2.0 and the EU's DAC8 directive. Starting with 2026 data collection, French crypto platforms will automatically report user transaction data, balances, and identity information to the DGFiP, which will exchange this data with other participating jurisdictions. This means French residents using foreign platforms — and foreign residents using French platforms — will have their crypto activity reported to their home tax authority.

How dTax Supports French Crypto Tax Compliance

Calculating PMPA across hundreds or thousands of transactions is error-prone when done manually. dTax automates the process by:

Computing the PMPA weighted average cost basis across your full transaction history
Identifying taxable events (fiat and stablecoin conversions) and excluding non-taxable crypto-to-crypto swaps
Generating reports aligned with Déclaration 2086 requirements
Importing transaction data from 23+ exchange formats, including major platforms used by French investors
Tracking mining and staking income separately under BNC rules

Frequently Asked Questions

Can I use FIFO instead of PMPA in France?

No. French tax law (Article 150 VH bis CGI) mandates the PMPA weighted average cost method for all occasional crypto investors. FIFO, LIFO, HIFO, and specific identification are not permitted. Using an incorrect method could trigger penalties during a tax audit by the DGFiP.

Is swapping Bitcoin for Ethereum taxable in France?

Generally no. Under current French tax law, exchanging one crypto asset for another (non-stablecoin) crypto asset does not constitute a taxable event, because no conversion to legal tender or fiat-equivalent occurs. However, swapping crypto for fiat-pegged stablecoins like USDT or USDC is treated as a taxable disposition. Complex DeFi scenarios involving liquidity pools and wrapped tokens may require specific analysis.

What happens if I do not declare my foreign exchange accounts?

Failure to file Form 3916-bis results in penalties starting at €750 per undeclared account (€1,500 for non-cooperative jurisdictions). If the account balance exceeds €50,000, the penalty rises to 5% of the balance. Additionally, under CRS 2.0 and DAC8, French tax authorities will receive transaction data from foreign platforms automatically starting in 2027, making undeclared accounts increasingly detectable.