France’s Cryptocurrency Tax Sparks Debate Over Capital Outflow
The French National Assembly has approved a new amendment imposing a 1% tax on “idle wealth” exceeding €2 million, which now includes major crypto assets alongside gold, art, and yachts. This move aims to encourage productive investments by targeting assets deemed non-productive.
Details of the New Tax Regulation
- The threshold for taxable idle wealth is raised from €1.3 million to €2 million.
- The flat 1% tax applies only to the surplus wealth above the €2 million mark.
- Crypto assets are reclassified as non-productive, aligning with gold and art under this category.
- The measure contrasts with the existing progressive real estate wealth tax, which applies rates from 0% to 1.5% depending on asset size.
Opposition Viewpoints
Critics argue the tax unfairly burdens savers who value stability in Bitcoin and other cryptocurrencies, potentially forcing asset sales and driving capital to EU countries with more favorable crypto regulations.
The amendment, introduced by Centrist MP Jean-Paul Matteï, reflects a broader European Union effort to harmonize digital asset policies.
Next Steps
The proposed tax law now awaits Senate approval for implementation in 2026, marking a significant shift in France’s approach to integrating cryptocurrency within its fiscal framework.
Summary
This legislation targets high-value idle assets, including crypto, to stimulate productive economic activity but raises concerns about investor impacts and capital migration.
Author’s summary: France's tax on crypto and other idle wealth aims to encourage productive investment but risks pushing investors to relocate assets to more crypto-friendly EU countries.