France to Impose Tax on Major Crypto Assets as 'Idle Wealth'
The French National Assembly approved a 1% tax on "unproductive wealth" exceeding €2 million, which includes crypto assets, as part of efforts to encourage productive investments.
Details of the Amendment
This amendment, proposed by Centrist MP Jean-Paul Matteï, classifies certain assets—such as gold, artwork, yachts, and cryptocurrencies—as "idle" if they do not contribute directly to economic growth. Only wealth surpassing the €2 million threshold will be subject to a flat 1% tax on the surplus, increasing the previous threshold from €1.3 million.
Comparison with Current Taxation
- The new tax applies to unproductive assets including crypto, gold, and art.
- The wealth tax threshold has been raised from €1.3 million to €2 million.
- It contrasts with France’s existing progressive real estate wealth tax, which ranges from 0% for holdings under €800,000 up to 1.5% for assets exceeding €10 million.
Criticism and Concerns
"Critics warn it penalizes savers seeking stability in Bitcoin, risking forced asset sales and capital flight to EU crypto-friendly zones."
Opponents argue the tax punishes investors who hold cryptocurrency as a stable asset and may lead to capital flight to countries with more favorable crypto regulations within the European Union.
Next Steps
The amendment now awaits Senate approval for implementation in 2026, signaling France's intent to integrate cryptocurrency regulation more closely within its broader economic policies.
Author's summary: France’s new tax on high-value idle crypto and luxury assets aims to stimulate productive investment but risks driving investors and capital to more crypto-friendly EU countries.