How to Report Bitcoin Gains in France: 2024 Step-by-Step Tax Guide

Understanding Bitcoin Taxation in France

French residents must report cryptocurrency gains as part of their annual income tax return. Unlike some countries, France doesn’t classify Bitcoin as currency but as movable property, triggering capital gains tax upon disposal. The Direction Générale des Finances Publiques (DGFiP) requires declaration of all crypto-related profits exceeding €305 per year. Failure to report accurately can result in penalties of up to 80% of owed taxes plus interest.

Step-by-Step Guide to Reporting Bitcoin Gains

1. Calculate Your Net Gain: Subtract acquisition costs (purchase price + fees) from disposal value. Use FIFO (First-In-First-Out) method unless specific identification is documented.
2. Complete Form 2086: Attach this supplementary form to your main income tax return. Section 3CM is dedicated to cryptocurrency gains.
3. Report on Income Tax Portal: Log into impots.gouv.fr and navigate to the “Revenus Exceptionnels” section during declaration season (typically April-June).
4. Apply the 30% Flat Tax: Gains are taxed at 12.8% for capital gains + 17.2% for social contributions, totaling 30%. Losses can be carried forward 10 years.
5. Submit Before Deadline: Electronic declarations are usually due by early June. Paper filers must submit by late May.

Required Documents for Reporting

Gather these records before filing:

• Transaction histories from all exchanges (Binance, Coinbase, etc.)
• Wallet addresses with acquisition dates
• Proof of purchase costs (bank statements/receipts)
• Calculations showing FIFO method application
• Records of mining/staking rewards if applicable

Special Cases and Exemptions

Occasional Traders: Those with gains under €305/year are exempt. Professional Traders: Must declare profits as industrial/commercial income (BIC) under micro-BIC regime if turnover is below €176,200. NFTs/DeFi: Follow same reporting rules as cryptocurrencies. Gifts/Inheritances: Subject to standard gift/inheritance tax after €100,000 exemption.

Common Reporting Mistakes to Avoid

• Forgetting small transactions (DGFiP receives automatic reports from French exchanges)
• Miscalculating acquisition costs by omitting transaction fees
• Confusing occasional trading with professional activity status
• Failing to convert values to euros using historical exchange rates
• Ignoring airdrops/staking rewards as taxable income

Frequently Asked Questions (FAQ)

Do I need to report if I only bought Bitcoin?

No. Taxation applies only when you sell, trade, or spend cryptocurrency. Simple purchases aren’t taxable events.

How are crypto-to-crypto trades taxed?

Each trade is considered a disposal. You must calculate euro value at trade time and report gains accordingly.

What if I used a foreign exchange?

French residents must declare gains from all global platforms. Non-EU exchanges now comply with DAC8 regulations, sharing data with French authorities.

Can I deduct crypto losses?

Yes. Net annual losses can offset future crypto gains for up to 10 years but can’t reduce other income types.

Is there a tax-free threshold?

Only gains below €305/year are exempt. This applies to total crypto profits across all transactions.

Are hardware wallets traceable?

Yes. All blockchain transactions are public. DGFiP uses chain analysis tools to verify declarations.

Staying Compliant in 2024

With France implementing the EU’s Markets in Crypto-Assets (MiCA) regulations, reporting requirements are becoming stricter. Use crypto tax software like Koinly or Accointing to automate gain calculations. Consult a conseiller fiscal if handling complex cases like DeFi yield farming or NFT royalties. Keep detailed records for at least six years as DGFiP can audit declarations retrospectively.