France Proposes Exit Tax on Crypto Holdings Over €800,000 and Tax on Stablecoin Swaps

This move aligns cryptocurrency taxation with traditional financial assets, potentially impacting investment strategies for high-net-worth individuals.

• On October 8, 2026, France's National Assembly Finance Committee approved amendments to extend the exit tax to crypto holdings above €800,000.
• Starting January 1, 2027, swaps into regulated stablecoins will be treated as taxable events.
• The proposals are pending further debate and a scheduled vote on October 20, 2026, after the budget's revenue section was rejected.

• Existing exit tax rules apply to unrealized gains on traditional financial assets for residents leaving France after six of the last ten years.
• Cryptocurrency holdings were previously exempt, creating a disparity that lawmakers aimed to address amid broader digital asset taxation reforms.
• The proposed amendments include a 10-year loss carryforward option, mirroring existing provisions for traditional securities.

The French government is taking significant steps to standardize the taxation of digital assets, particularly cryptocurrencies, in a bid to close perceived loopholes that have allowed high-net-worth individuals to avoid taxes when relocating abroad. The amendments proposed by deputy Nicolas Sansu of the GDR group aim to extend the existing exit tax, which currently applies to unrealized gains on traditional financial assets, to cryptocurrency holdings exceeding €800,000. This threshold matches that of traditional securities, ensuring a level playing field in taxation.

The Finance Committee's approval of these amendments reflects a growing recognition of the need for regulatory clarity in the rapidly evolving crypto landscape. By treating swaps into regulated stablecoins as taxable events, the French government is signaling its intent to monitor and tax digital asset transactions more rigorously. This move is particularly relevant as stablecoins gain traction as a bridge between traditional finance and the crypto world, often used for trading and liquidity purposes.

The proposed measures are not without controversy. The rejection of the full revenue section of the budget on October 9, 2026, by a 31-3 vote indicates that there may be significant pushback from lawmakers regarding the broader implications of these tax changes. The amendments will need to be reintroduced during the plenary debate starting October 13, with a critical vote scheduled for October 20. If enacted, these rules will apply to any departures or transactions occurring from January 1, 2027, marking a pivotal shift in how France approaches cryptocurrency taxation.

Moreover, the proposed amendments could lead to increased compliance costs for individuals and businesses involved in crypto transactions, as they will need to track and report taxable events more meticulously. This could deter some investors from entering the market or encourage them to reconsider their strategies, particularly those with substantial crypto holdings.

• High-net-worth individuals: Those with crypto portfolios exceeding €800,000 will face new tax liabilities when relocating.
• Crypto investors: Individuals engaging in stablecoin swaps will need to account for tax implications starting January 1, 2027.
• Financial advisors and tax professionals: Increased demand for guidance on compliance and tax strategies related to crypto holdings.

• The outcome of the plenary vote on October 20: This will determine whether the proposed amendments become law and how they will be implemented.
• Potential reactions from the crypto market: Watch for shifts in investment strategies or capital flows in response to the new tax framework.
• Future regulatory developments: Keep an eye on additional measures related to self-hosted wallet disclosures and their implications for crypto holders.