France has recently passed an amendment to its 2019 finance bill, reducing the capital gains tax on Bitcoin sales from 36.2% to 30%. This adjustment aligns cryptocurrency taxation with other non-real estate assets, fostering a more competitive environment for crypto traders.
Key Details of the Tax Amendment
- Approval Process: The amendment received initial approval from France's lower house finance committee but requires broader parliamentary approval to become law.
- Effective Date: If fully passed, the new tax rate will take effect on January 1 of next year.
- Historical Context: France previously taxed cryptocurrency gains at 45% but reclassified digital asset profits as "movable capital gains" in April, excluding mining revenues.
France’s Pro-Business Crypto Policies
Under President Emmanuel Macron’s leadership, France is emerging as a crypto-friendly hub. Key initiatives include:
- PACTE Law: Designed to simplify business operations and establish legal frameworks for token sales (ICOs).
ICO Regulations: Enacted in September, these require:
- Licensing by the AMF (France’s Financial Markets Authority).
- Detailed disclosures to investors to mitigate risks like money laundering.
Quote from Finance Minister Bruno Le Maire:
"The new legislation ensures only ICOs with robust investor safeguards receive approval."
FAQs
Q: How does France’s new crypto tax rate compare to other EU countries?
A: At 30%, it’s more competitive than Germany’s 45% but higher than Portugal’s 0% for individual traders.
Q: Are mining profits taxed differently?
A: Yes—mining income is classified as industrial/commercial profits, not capital gains.
Q: What safeguards exist for ICO investors?
A: Issuers must provide AMF with project details and ensure transparent buyer communications.
👉 Explore crypto-friendly investment opportunities
👉 Learn more about France’s PACTE law