Crypto taxation is often postponed by beginner traders. That's a mistake. Understanding basic rules from the start avoids nasty surprises at tax time, and lets you maintain a journal adapted to legal obligations.
This article covers fundamentals for individuals who are French tax residents. It doesn't replace an accountant.
The 30% Flat Tax (PFU)
Since 2019, capital gains on crypto asset sales for individuals are subject to a Flat Tax (PFU) of 30%, broken down as:
- 12.8% income tax
- 17.2% social levies
This rate applies automatically. However, there's an option: if your marginal tax rate is below 12.8% (0% or 11% brackets), you can opt for the progressive scale at tax time. This option applies to all your capital gains for the year — it can't be chosen selectively for crypto.
The 305€ Threshold
If your total sales for the year are below 305€, you have no reporting obligation. This threshold is calculated on the sum total of sales (sale prices), not on gains.
Above 305€ in total sales per year, all your gains are taxable. It's not an exemption — it's a triggering threshold.
305€ represents total sales (prices sold at), not profit. If you sell €500 of crypto with a €20 gain, you exceed the threshold and must report.
What's Taxable and What Isn't
Taxable events (conversion to fiat):
- Selling crypto for euros on an exchange
- Buying goods or services with crypto (paying in BTC, for example)
- Withdrawing staking returns converted to euros
Non-taxable in France:
- Crypto-to-crypto exchange (BTC → ETH, ETH → USDC): no tax in France for individuals. This is one of France's advantageous tax points.
- Transfers between your own wallets
- Simple holding
Gray zones:
- NFTs: tax administration positions are evolving. An NFT bought in ETH and resold in ETH could be treated as crypto exchange (non-taxable) or asset sale (taxable). Monitor this.
- DeFi income: see dedicated section.
France's key advantage: you can rebalance your portfolio between different assets without triggering taxation. Taxation only occurs on exit to euros.
Calculating Gains: The Global Method
The French calculation method is global — it accounts for your entire crypto portfolio, not each token separately.
Formula:
Gain = Sale Price − (Total Acquisition Cost × Fraction Sold)
Fraction sold = Sold Value / Total Portfolio Value at sale time.
Simplified example:
- Total portfolio: €10,000 (cumulative acquisition cost)
- Current portfolio value: €30,000
- You sell for €3,000 (10% of portfolio)
- Fraction sold: 3,000 / 30,000 = 10%
- Cost basis of fraction: 10,000 × 10% = €1,000
- Taxable gain: 3,000 − 1,000 = €2,000
- Tax (30%): €600
This method requires maintaining a complete history of all purchases across all exchanges to calculate your global acquisition cost.
DeFi and Staking
Staking and yield farming: passive income from staking, lending, or yield farming is generally treated as Non-Commercial Income (BNC) for individuals, or as Commercial Income (BIC) if the activity is more structured. This income is taxed at the time of receipt, valued in euros at that moment.
Important nuance: DeFi taxation in France is still being clarified by tax authorities. Positions evolve regularly. Consult a professional for complex situations (liquidity pools, variable-reward staking, etc.).
Individual vs Professional Trader: Avoid Reclassification Risk
An individual whose crypto trading becomes "habitual and principal" can be reclassified as a professional (BIC) by tax authorities. Consequences: taxation at progressive BIC rates, higher social contributions, accounting obligations.
Reclassification criteria aren't precisely defined, but warning signs include:
- Daily high-frequency trading
- Very large volumes (several million per year)
- Trading income exceeding other income
- Use of sophisticated strategies, bots, high leverage
Most swing trader individuals aren't affected. If you're in a gray zone, consult a crypto-specialized accountant.
Reporting Tools
Maintaining precise trading journal is essential for calculating gains. Without complete history, calculation is impossible.
Dedicated software:
- Waltio: French solution, integrates major French exchanges, automatically generates form 2086
- Koinly: International solution, compatible with hundreds of exchanges and DeFi wallets
- CoinTracking: more technical, very complete for complex portfolios
These tools import your history via API or CSV, automatically calculate gains by French method, and generate reporting forms.
Required form: Form 2086 must be attached to your income return. It lists each sale of the year with corresponding gain calculation.
What DYOR Can Do for You
DYOR isn't a tax tool. However, DYOR Observations can serve as your trading journal: you record entries, exits, levels, and reasoning there. This data, exported or transcribed into a tax software, forms the basis of your filing.
A rigorous trading journal is the best way to simplify your return — and to demonstrate good faith if audited.
Crypto taxation evolves regularly in France. This article reflects rules as of publication date. Check updates on the official tax site (impots.gouv.fr) or consult an accountant for your specific situation.