How to Report Bitcoin Gains in France: Your Complete 2024 Tax Guide

Understanding Bitcoin Taxation in France

In France, cryptocurrency gains are treated as movable property capital gains under Article 150 VH bis of the General Tax Code. Whether you’ve sold Bitcoin on an exchange, used it for purchases, or earned it through mining/staking, you must declare profits to the French Tax Administration (DGFiP). The tax applies only to realized gains (when you sell or convert crypto to fiat currency), not unrealized holdings. France uses a flat tax system called Prélèvement Forfaitaire Unique (PFU), combining income tax and social contributions.

Step-by-Step Guide to Reporting Bitcoin Gains

1. Calculate Your Net Gain:
   Net Gain = Selling Price – (Purchase Cost + Transaction Fees)
   Use FIFO (First-In-First-Out) method for cost basis calculation. Track all transactions via exchange statements or crypto tax software.
2. Complete Form 2086:
   Attach this supplementary form to your annual tax return. Detail each transaction type:
   • Sales for fiat currency
   • Crypto-to-crypto trades
   • Goods/services purchases
3. Declare on Income Tax Return:
   Report total net gains in Section “Revenus des valeurs mobilières” of your Form 2042. Include losses to offset gains.
4. Pay the PFU Tax:
   A flat rate of 30% applies (12.8% income tax + 17.2% social contributions). Payment deadlines align with standard income tax schedules.

Special Cases and Exemptions

Occasional Traders may qualify for exemption if:

• Total annual sales ≤ €5,000
• Gains ≤ €305 per year

Professional Traders (regular/high-volume) face income tax up to 45% + social charges under BIC regime. Crypto Mining/Staking rewards are taxed as non-commercial profits (BNC) at progressive rates. Gifts/Inheritances follow standard wealth transfer rules with allowances up to €100,000 per child.

Essential Record-Keeping Practices

• Retain transaction histories for 6 years (DGFiP requirement)
• Document: Dates, amounts, wallet/exchange addresses, counterparty details
• Use tools like Koinly or Accointing for automated tracking
• Keep proof of initial acquisitions (bank statements, purchase receipts)

Penalties for Non-Compliance

Failure to declare crypto gains risks:

• 10% penalty for late declaration
• 40% fine for unreported income
• Potential criminal charges for tax evasion
• Interest on overdue taxes (0.2% monthly)

The DGFiP actively cross-checks data with crypto exchanges under international agreements like DAC8.

Frequently Asked Questions (FAQ)

Do I pay tax if I transfer crypto between my own wallets?

No. Transfers between wallets you own aren’t taxable events. Only disposals (sales, trades, spending) trigger gains calculation.

How are Bitcoin losses handled?

Net capital losses can be carried forward for 10 years to offset future crypto gains. They can’t reduce other income types.

Is DeFi taxation different in France?

Yes. Liquidity pool rewards, yield farming, and airdrops are taxed as miscellaneous income at progressive rates (up to 45%) plus 17.2% social charges.

Must I declare small crypto purchases (e.g., coffee)?

Technically yes, but sub-€305 annual gains are exempt. Track all spending regardless to prove exemption eligibility.

Can I use foreign exchanges without French KYC?

Yes, but you’re still legally required to report gains. Non-EU exchanges must provide transaction data to French authorities under CRS regulations.

Disclaimer: Tax laws evolve. Consult a conseiller fiscal or use the official impots.gouv.fr portal for personalized guidance.