France Proposes Crypto Exit Tax for Holdings Above €800,000
France is considering new tax measures targeting cryptocurrency holders who relocate abroad with substantial digital asset holdings, alongside a proposal to tax certain cryptocurrency-to-stablecoin conversions as sales from January 1, 2027. Both measures have passed the National Assembly's finance committee but must be reintroduced during the full Assembly's budget debate, scheduled to begin on October 13.
According to Coin Bureau, the proposed exit tax would apply to French tax residents moving abroad who hold more than €800,000 in cryptocurrency. The reported scope includes digital assets held on cryptocurrency exchanges, meaning the proposal is not limited to tokens stored in self-custody wallets.
Proposed Tax Targets Crypto Holders Moving Abroad
The proposed exit tax would focus on French tax residents leaving the country with cryptocurrency holdings exceeding the €800,000 threshold. If adopted, the measure would introduce a tax consideration for individuals with substantial digital asset portfolios who change their tax residence from France to another country.
Coin Bureau reported the proposal as a measure targeting crypto holders who leave France with holdings above the specified threshold. However, the reported information does not establish the proposed tax rate, the precise method for valuing eligible assets, or how the measure would calculate any taxable gain. Those details should not be assumed from the €800,000 threshold alone.
The inclusion of cryptocurrency held on exchanges is also a significant detail in the reported proposal. It indicates that exchange-based holdings would fall within its stated scope, rather than the measure being described solely in terms of assets held in private wallets.
Stablecoin Conversions Could Become Taxable Sales
The second proposal concerns the tax treatment of cryptocurrency swaps into stablecoins. French lawmakers are seeking to classify these transactions as taxable sales beginning January 1, 2027.
Under the proposed approach, converting a cryptocurrency into a stablecoin could be treated as a taxable disposal rather than simply a change in the type of digital asset held. The proposed start date is January 1, 2027, although the measure's final scope and implementation details cannot be established from the reported information.
The proposal concerns the transaction's tax markets classification, not merely whether a holder withdraws funds from an exchange or converts digital assets into traditional currency. However, the available report does not specify which stablecoins or transaction categories would be covered, how gains would be calculated, or whether any exemptions would apply.
Both Measures Still Face the Full Assembly
Despite clearing the National Assembly's finance committee, neither proposal has been established as a final enacted measure on the basis of the reported developments. Both must be re-tabled when the full National Assembly debates the budget from October 13.
The committee's approval therefore marks a legislative step rather than confirmation that the proposals will become law in their reported form. Their eventual status depends on the subsequent budget process, and the available information does not establish the outcome of the full Assembly's deliberations.
The two proposals address separate aspects of cryptocurrency taxation: the treatment of substantial holdings when French tax residents move abroad and the classification of cryptocurrency-to-stablecoin swaps. The reported threshold for the proposed exit tax is more than €800,000, while the proposed start date for taxing stablecoin conversions as sales is January 1, 2027.
Writer: Victoria HaleTechnology & Blockchain WriterVictoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.She prioritises clarity and accuracy when explaining technical developments to a general audience.
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