# How to Declare Your Crypto Gains for Taxes in France
Introduction
Since the rise of cryptocurrencies, France has implemented a specific tax framework for gains realized from the sale of these digital assets. Whether you are an occasional investor or a regular trader, it is essential to understand your reporting obligations. This guide explains the key steps to correctly declare your crypto gains for taxes.
Key Steps to Declare Your Crypto Gains
1. Determine Your Tax Regime
In France, gains from the sale of cryptocurrencies are taxed under the category of capital gains on movable property (Article 150 VH of the French General Tax Code), unless you are considered a professional (habitual purchase/sale activity). The flat rate is 30% (12.8% tax + 17.2% social security contributions), applicable from the first euro of gain.
2. Identify Taxable Transactions
Any disposal (sale, exchange for fiat currency, purchase of goods or services) of cryptocurrencies is taxable. The following transactions are not taxable:
– Holding without sale.
– Transfer between your own wallets (e.g., from an exchange to a personal wallet).
– Purchasing cryptocurrencies with euros (no gain realized).
3. Calculate the Capital Gain
The capital gain is the difference between the disposal price and the acquisition price. For partial disposals, use the weighted average acquisition price (PMP) method. Example: if you bought 1 BTC at €10,000 and 1 BTC at €20,000, the PMP is €15,000. If you sell 0.5 BTC at €25,000, the capital gain is (25,000 – 15,000) × 0.5 = €5,000.
4. Declare Using Form 2086
For capital gains exceeding €305 (tax threshold), you must complete Form 2086 (available on impots.gouv.fr). This form details each disposal (date, amount, capital gain). It must be attached to your income tax return (Form 2042) in box 3AN (capital gains on movable property).
5. Declare Foreign Accounts
If you hold cryptocurrencies on an exchange platform based abroad (e.g., Binance, Coinbase), you must declare these accounts using Form 3916 (declaration of accounts opened abroad). Failure to declare may result in a fine of €1,500 per undeclared account.
6. Manage Losses
Losses realized during disposals can be offset against capital gains of the same nature realized during the same year. They cannot be carried forward to subsequent years. If you have a net loss, you will not pay tax on the corresponding gains.
7. Special Cases: Staking, Mining, Airdrops
– Staking: rewards are considered taxable income at the time of receipt (30% rate).
– Mining: gains are taxed as non-commercial profits (BNC) if the activity is regular.
– Airdrops: taxable as capital gains upon subsequent disposal.
Conclusion
Declaring your crypto gains in France requires good organization: tracking transactions, calculating the PMP, and filling out the appropriate forms. To avoid errors, use tracking tools (e.g., Koinly, CoinTracker) or consult a specialized accountant. Remember that the tax authorities can check your declarations using data from exchange platforms. Be rigorous and declare each year before the deadline (generally end of May).
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