How to Report Crypto Income in France: Your 2024 Tax Guide

Understanding Crypto Taxation in France

In France, cryptocurrency transactions are classified as movable property gains (plus-values mobilières) and are subject to capital gains tax. Whether you’re trading, staking, or receiving airdrops, the French tax authority (Direction Générale des Finances Publiques) requires declaration. Non-compliance can trigger audits and penalties of up to 80% of owed taxes.

Types of Crypto Income and Tax Treatment

French tax law categorizes crypto activities into two main groups with distinct tax rules:

• Occasional Trading: Taxed under capital gains rules. Applies if trading isn’t your primary income source.
• Professional Activity: If trading is habitual and substantial, profits are taxed as industrial/commercial profits (BIC) with higher social charges.

Specific transaction types include:

• Selling/Trading: Capital gains calculated as (sale price – acquisition cost)
• Staking/Rewards: Treated as miscellaneous income at fair market value when received
• Airdrops/Hard Forks: Taxable as non-commercial profits upon disposal
• Mining: Taxed as non-commercial profits (BNC) if occasional, or BIC if professional

Step-by-Step Reporting Process

1. Calculate Gains/Losses: Use FIFO (First-In-First-Out) method. Deduct acquisition costs and transaction fees. Formula: Gain = Sale Price – (Purchase Price + Fees)
2. Complete Tax Forms:
   • Form 2042: Box 3AN for capital gains
   • Schedule 2086: Detailed crypto transaction report
3. Apply Allowances: Occasional traders benefit from:
   • €305 annual deduction
   • Reduced tax rate after 5-year holding period
4. Submit by Deadline: Electronically via impots.gouv.fr by May-June 2025 for 2024 income

Deadlines and Penalties

Tax returns for crypto income are due in May-June following the tax year. Late submissions incur:

• 10% penalty for missed deadline + 5% monthly interest
• 40% fine for unreported income discovered in audits
• Criminal charges for deliberate fraud

Record-Keeping Requirements

Maintain these records for 6 years:

• Transaction dates and values in EUR
• Counterparty wallet addresses
• Exchange statements
• Proof of acquisition costs
• Calculations for staking/mining rewards

Frequently Asked Questions (FAQ)

1. Do I report crypto if I only have losses?

Yes. Declare losses on Schedule 2086 to carry them forward for 10 years against future gains.

2. Is there a tax-free threshold?

Only occasional traders qualify: Gains under €305 are tax-free. Professional traders pay full tax from the first euro.

3. How are DeFi yields taxed?

Liquidity mining and lending rewards are taxed as miscellaneous income at receipt value. Subsequent disposal triggers capital gains tax.

4. What if I use foreign exchanges?

You must still declare all global transactions. Failure to report foreign-held crypto incurs penalties up to €1,500 per undeclared account.

Disclaimer: Tax laws evolve. Consult a French tax advisor for personalized guidance. This article reflects regulations as of 2024.