Guide to Crypto Taxation in 2025: What You Must Declare, Why, and How

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Navigating cryptocurrency taxation can feel overwhelming — especially in France, where regulations are precise yet complex. In 2025, crypto investors must understand not only what to declare but also why and how to do it correctly to remain compliant and avoid penalties. This comprehensive guide breaks down the French tax framework for digital assets with clarity and precision, helping you stay on the right side of the law while optimizing your reporting process.

Understanding France’s Unique Crypto Tax Regime

Since 2019, France has established a clear legal framework for cryptocurrency taxation under Article 150 VH bis of the General Tax Code. This regime is distinct from those governing traditional securities or movable property, applying specifically to digital assets.

👉 The standard rules apply to individuals trading crypto on an occasional basis.
👉 For professional traders — those whose crypto activity is habitual and constitutes their primary income — gains are classified as Bénéfices Non Commerciaux (BNC) since 2024.

This tailored approach ensures that casual investors aren’t treated like full-time traders, while still maintaining strict accountability across all user types.

What Is the Crypto Tax Rate in 2025?

In France, capital gains from crypto transactions are typically subject to the Prélèvement Forfaitaire Unique (PFU), commonly known as the flat tax. The total rate is:

However, taxpayers have a valuable option: they may choose instead to be taxed under the progressive income tax scale, which could result in a lower effective rate depending on overall income. This election is irrevocable for the entire tax year and must be made during annual tax filing.

💡 Exemption Threshold: If your total crypto disposals in a year amount to less than €305, you are exempt from tax. However, you are still required to report these transactions.

This nuance is often misunderstood — even small trades must be documented to maintain compliance.

Your Key Tax Obligations as a Crypto Holder

French tax law imposes two major responsibilities on crypto users:

1. Declaration of Foreign Bank Accounts (Form 3916-bis)

If you hold funds on a custodial exchange located outside France — such as Binance, Kraken, or OKX — you must declare this account using Cerfa Form 3916-bis, regardless of whether any transactions occurred.

👉 Applies only to accounts where you do not control the private keys.
👉 Self-custody wallets like MetaMask, Ledger, Rabby, or Phantom are not subject to this rule.

Failure to report can result in a penalty of €750 per undeclared account, doubling to €1,500 if the account value exceeds €50,000 at any point during the year.

2. Reporting Taxable Transactions (Form 2086)

Contrary to popular belief, France does not require reporting of net capital gains. Instead, each taxable disposal must be reported individually on Form 2086, including:

Each entry requires a precise calculation of capital gain based on the French prorata method — more on that below.

⚠️ Tax-Free Events:

  • Swapping one cryptocurrency for another (e.g., ETH → USDT)
  • Transferring between your own wallets
  • Earning DeFi rewards without converting to fiat

These actions do not trigger a taxable event under current rules.

How Is Capital Gain Calculated in France?

France uses a unique formula known as the prorata method, unlike FIFO or LIFO systems used elsewhere. The official formula is:

Capital Gain = Sale Price – (Total Net Acquisition Cost × Sale Price / Total Portfolio Value Before Sale)

To apply this correctly, you need:

Because this calculation must be repeated for every taxable transaction, active traders may face hundreds of manual computations annually.

👉 Discover how automated tools simplify complex tax calculations and keep you audit-ready.

Tax Treatment by Crypto Activity Type

Not all crypto activities fall under the standard capital gains regime. Here's how different use cases are treated:

🏗️ Mining

Rewards from mining are considered professional income and taxed under BNC. The market value at receipt becomes the acquisition cost for future sales.

🔁 Staking & Lending

Yields from centralized platforms are clearly taxable as BNC income upon receipt. Decentralized staking (e.g., Lido, Rocket Pool) lacks definitive guidance — but reporting gains proactively is advisable.

🎁 Airdrops

Unsolicited airdrops with no clear service exchange are generally not taxed at receipt, but any profit from selling them later is taxable.

🖼️ NFTs

Most NFTs are treated as digital assets. Selling an NFT for fiat triggers capital gains tax. Exchanging NFTs for other cryptos remains tax-neutral.

Creators who regularly sell NFTs may be classified as professionals, subjecting income to BNC or BIC rules.

🎮 Play-to-Earn (P2E)

Income from blockchain games depends on frequency:

🤝 Donations

Gifting crypto incurs no immediate tax for the donor. However:

When Should You File Your Crypto Taxes in 2025?

The online tax portal opens on April 10, 2025, for declaring 2024 income. Deadlines vary by department:

Start early — international exchanges may take days to provide full transaction histories.

👉 Access real-time portfolio tracking and instant tax-ready reports with integrated solutions.

What Happens If You Don’t Declare Your Crypto?

Assuming your crypto activity goes unnoticed is a dangerous misconception. With EU-wide data-sharing initiatives like MiCA and DAC8, exchanges increasingly share user data with tax authorities.

Consequences of non-compliance include:

While France offers a "right to error" (droit à l’erreur), allowing self-correction without penalties before audit, you must demonstrate good faith with accurate records.

Frequently Asked Questions (FAQ)

❓ Do I need to declare crypto trades below €305?

Yes. While you won’t owe tax if total gains are under €305, all transactions must still be reported.

❓ Are DeFi yields taxable?

Yes, if earned through centralized platforms. For decentralized protocols, clarity is limited — but declaring them minimizes risk.

❓ How do I prove my acquisition cost?

Maintain records of all purchases, transfers, and valuations. Tools that auto-sync with exchanges help build an audit trail.

❓ Can I use FIFO or LIFO for cost basis?

No. France mandates the prorata method only. Other methods are not permitted.

❓ What if I lose money trading crypto?

Losses can offset gains in the same year. Unused losses can be carried forward indefinitely.

❓ Is gifting crypto taxable?

Not for the giver. But the recipient may face gift tax depending on the amount and relationship.

Why Automation Is Key to Compliance

Manually managing hundreds of transactions across multiple platforms is time-consuming and error-prone. That’s why many investors turn to specialized tools that:

These tools drastically reduce workload and increase accuracy — critical when facing strict deadlines and high penalties.

👉 See how leading platforms streamline tax preparation and portfolio management in one place.

Final Thoughts

Crypto taxation in France isn’t about hiding — it’s about being prepared. With clear rules in place and increasing oversight from tax authorities, compliance is both achievable and essential. Whether you're new to crypto or an experienced trader, understanding your obligations protects your investments and peace of mind.

The real challenge lies not in grasping complex laws, but in handling vast amounts of transaction data accurately and efficiently. In 2025, smart investors don’t just follow the rules — they use technology to stay ahead.

Staying compliant doesn’t have to be stressful. With the right approach — and the right tools — you can meet your tax responsibilities confidently and securely.