How to Declare Your Crypto Capital Gains to the Tax Authorities in France

How to declare your crypto capital gains to the tax authorities in France: complete guide

For several years, the taxation of cryptocurrencies in France has evolved to regulate this new form of investment. Whether you are an occasional investor or a regular trader, it is essential to understand how to correctly declare your gains from crypto-assets to avoid any tax adjustment. This article details, step by step, the rules to follow to declare your crypto capital gains to the tax authorities in France, with concrete examples and practical advice.

Understanding the taxation of cryptocurrencies in France

In France, gains realized on the sale of cryptocurrencies are considered capital gains on digital assets. Since January 1, 2019, the flat tax (single flat-rate levy - PFU) applies by default, at a rate of 30%: 12.8% income tax and 17.2% social contributions. This taxation concerns individuals making occasional or regular sales of crypto-assets in a non-professional context.

For example, if you sell €10,000 worth of Bitcoin that you bought at €6,000, your capital gain is €4,000. You will therefore have to pay 30% of this capital gain, i.e. €1,200 in taxes.

Which transactions must be declared?

The declaration concerns all transactions resulting in a capital gain, notably:

• The sale of cryptocurrencies against euros or another fiat currency.
• The exchange of cryptocurrencies for other crypto-assets (for example, exchanging Bitcoin for Ethereum).
• The conversion of cryptocurrencies into goods or services.

However, the simple transfer of cryptocurrencies between your own wallets or holding without selling does not generate taxation.

How to calculate your taxable capital gain?

The calculation of the taxable capital gain is generally