Bitcoin News Update: France’s Cryptocurrency Tax Raises Concerns Over Capital Outflow as Opponents Argue Investors Are Being Punished
- France's National Assembly passed a 1% tax on "unproductive wealth" over €2M, including crypto, to boost productive investments. - The law reclassifies crypto, gold, and art as non-productive assets, raising the wealth threshold from €1.3M to €2M. - Critics warn it penalizes savers seeking stability in Bitcoin, risking forced asset sales and capital flight to EU crypto-friendly zones. - The amendment now awaits Senate approval for 2026 implementation, reflecting France's shift to integrate crypto into tr
France to Impose Tax on Major Crypto Assets as 'Idle Wealth'
The French National Assembly has
This amendment, put forward by Centrist MP Jean-Paul Matteï, reclassifies items like gold, artwork, yachts, and cryptocurrencies as "idle" if they do not have a direct impact on economic development. Only those whose idle wealth exceeds 2 million euros will be subject to the flat 1% tax on the surplus, raising the threshold from the earlier 1.3 million euros. This differs from France’s existing progressive real estate wealth tax, which starts at 0% for assets under 800,000 euros and rises to 1.5% for holdings above 10 million euros.
Opponents, such as
This legislative change is in line with ongoing European Union efforts to standardize digital asset regulations, but it has raised concerns about potential capital outflows. The French Banking Federation warns that the new tax could prompt investors to move their funds to EU countries with more favorable crypto policies. Financial experts estimate that as many as 50,000 people could be impacted, based on wealth data from 2024.
Although the amendment has passed the National Assembly, it still requires Senate approval to be included in the 2026 budget. Proponents expect the measure to take effect by January 1, 2026, if current progress continues. This policy marks a notable change in France’s approach to taxation, bringing digital assets under the umbrella of traditional wealth taxes.
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