France Targets Bitcoin With New Tax In 2025 Budget Proposal

Share This Post

The French government proposes replacing the real estate wealth tax with an “unproductive wealth tax” that targets dormant assets, including cryptocurrencies, luxury goods, and other unused real estate. According to Senator Sylvie Vermeillet, Bitcoin will be classified as a non-productive asset in next year’s national budget. Vermeillet’s proposal is similar to the taxation of luxury goods and unused real estate.

The French tax laws apply a flat 30% tax on cryptocurrency gains over €305. However, in the proposed tax law for 2025, even unrealized gains on crypto are subject to tax. Under Vermeillet’s proposal, assets in custody over €800,000 shall become taxable.

Failure to report an external account faces a €1,500 per account, but cryptocurrency-to-cryptocurrency trades are tax-free. The new tax proposal has already passed the senate’s preliminary vote, but the legislation is not yet final.

French Gov’t Looking For ‘Balanced Taxation’

On December 3rd, French Senator Sylvie Vermeillet formally submitted a proposal to classify Bitcoin and cryptocurrencies as non-productive assets in next year’s budget. Like unused real estate and luxury goods, unproductive assets like Bitcoin and digital assets are subject to tax. French

Finance Minister Laurent Saint-Martin approves the proposal, saying exempting the top digital asset from taxation while taxing other economic assets is unfair.

The proposal aims to balance taxation between digital and physical assets, creating a “balanced taxation system.” Once approved, crypto holders and investors must reevaluate their holdings and future investments. However, the proposal has a few critics who say it may reduce market interest and increase price volatility.

No Tax On Crypto-To-Crypto Trades

French taxation laws impose taxes on profits gained from purchases made with BTC or other digital assets and sales of digital assets for Euro. Under the current proposal, there are no taxes on crypto-to-crypto trades, allowing investors and holders to diversify their holdings with tax obligations instantly. According to its proponents and supporters, the new tax law will benefit crypto trade and expand market participation.

The amendment filed on November 18th specifies the tax rates for next year’s national budget, with holders paying taxes for assets over €800,000. While the new rule may seem simple, the reporting process can be daunting for some. Crypto holders must track transactions like lending, staking, and liquidity pools.

Crypto Holders Must Report Or Face Fines

The submitted amendment also requires French taxpayers to report any crypto accounts outside the country. Failure to file a report is subject to a €750 penalty. And if the account holds more than €50,000 in assets, the penalty increases to €1,500.

Vermeillet’s proposal also requires holders to submit the Cerfa 3916-bis form annually for tax reporting purposes. Taxpayers must file their tax returns annually, even if no recorded transaction is involved. Authorities reserve the right to review individual tax records if the government suspects potential fraud.

Featured image from Alexander Spatari via Getty Images, chart from TradingView

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

BNB Ready To Breakout? New ATH Coming ‘In No Time’ If This Resistance Breaks

BNB is among today’s market leaders after seeing a 5% surge in the past 24 hours Amid its recent performance, the token is retesting key levels, leading some market watchers to forecast new highs

Solana Price Today: This Meme Coin Sees 130% Rally While Solana Pushes for $175

The post Solana Price Today: This Meme Coin Sees 130% Rally While Solana Pushes for $175 appeared first on Coinpedia Fintech News Solana Price is now at $128 It couldn’t beat the bearish momentum

Bank of Korea Rejects Bitcoin for Reserves, Citing High Volatility and Liquidity Concerns

South Korea’s central bank has ruled out adding bitcoin to its foreign exchange reserves, citing extreme price volatility and failure to meet liquidity and investment-grade standards This stance

Metaplanet Expands Bitcoin Holdings Amid Market Corrections and Strategic Financing

The post Metaplanet Expands Bitcoin Holdings Amid Market Corrections and Strategic Financing appeared first on Coinpedia Fintech News Metaplanet Inc (Tokyo: 3350), a fast-growing company through a

Trump’s SEC Pick Paul Atkins Faces Shocking Delay – Missing Paperwork Stalls Confirmation!

The post Trump’s SEC Pick Paul Atkins Faces Shocking Delay – Missing Paperwork Stalls Confirmation! appeared first on Coinpedia Fintech News Paul Atkins, President Donald Trump’s nominee for

Burwick Law Sues LIBRA Memecoin Creators Over Deceptive Token Launch

The post Burwick Law Sues LIBRA Memecoin Creators Over Deceptive Token Launch appeared first on Coinpedia Fintech News The Supreme Court of New York is set to review the Libra token case after a