France’s crypto exit-tax ideas crash the budget party — twice

The French National Assembly rejected two proposals that would have imposed exit taxes on unrealized crypto gains when taxpayers transferred their tax residence abroad. The first proposal received 27 votes in favor, 55 against and one abstention, while a separate measure was rejected with 31 votes in favor and 60 against, according to the Assembly’s official voting record.

One proposal sought to include crypto assets in France’s existing exit tax regime. The other would have taxed unrealized gains on household crypto holdings worth more than 800,000 euros ($897,000) when taxpayers moved their tax residence outside the country, provided they had been tax-resident in France for at least six of the preceding 10 years.

Other crypto-related proposals remain pending, including a requirement to report self-custodied crypto holdings worth a combined value of at least 100,000 euros ($112,000) to tax authorities, based on their year-end value. Another proposal would exempt gains on crypto payments for goods and services when their total value did not exceed 1,000 euros ($1,120) during the tax year. Lawmakers also approved a proposal on Oct. 16 to tax gains when crypto assets are converted into fiat-pegged stablecoins, but the measure has not become law.

The National Assembly is continuing its debate on the revenue section of the 2027 state budget on Tuesday rather than holding the planned vote, according to the Assembly’s end-of-session notice following Monday’s sitting. The agenda includes questions to the government and debate on 758 amendments still awaiting examination. This is the vote’s second delay, after the original Oct. 20 vote was postponed with more than 2,000 amendments pending, according to French newspaper Le Monde.

The National Assembly has until midnight on Nov. 17 to complete its first-reading examination. If the revenue section is rejected, the government’s original budget proposal will move to the Senate without amendments adopted by MPs.