France Moves to Tax Crypto-to-Stablecoin Swaps at 31.4% Starting in 2027

TLDR

• France’s finance committee approved a plan on October 7 to tax gains from certain crypto-to-stablecoin swaps starting January 1, 2027.
• The rule applies only to electronic money tokens under the EU’s MiCA regulation, not all stablecoins.
• Gains would face France’s 31.4% flat tax, made up of 12.8% income tax and 18.6% social contributions.
• Lawmakers are also reviewing an exit tax for crypto holders, a ten-year loss carryforward, and self-custody wallet reporting rules.
• The measure is not final and still needs to pass Parliament.

France is moving forward with a proposal that would tax gains from some crypto-to-stablecoin swaps. The change would start on January 1, 2027, if Parliament approves it.

The National Assembly’s finance committee approved the measure on October 7. It is part of France’s 2027 budget proposal, which still needs a full vote.

Today, French investors pay tax when they sell crypto for regular money, such as euros. They also pay tax when they use crypto to buy goods or services.

However, swaps between digital assets are usually not taxed right away. The tax is deferred until the investor cashes out.

What the Stablecoin Tax Proposal Would Change

The proposal is called Amendment I-CF1826. It was introduced by lawmaker Nicolas Sansu and others, and it would change Article 150 VH bis of the French tax code.

The amendment targets swaps where investors receive electronic money tokens under the European Union’s Markets in Crypto-Assets (MiCA) rules. These tokens are designed to hold a steady value against one official currency.

Not every stablecoin would be covered. The rule applies only to electronic money tokens as defined by MiCA, and other crypto assets are not affected.

The reasoning behind the change is that the current system lets investors move crypto profits into tokens that work like cash without paying tax. The proposal would treat these swaps the same way as sales for fiat money.

How the 31.4% Crypto Tax Would Work

French tax authorities apply a flat tax rate of 31.4% to private gains on digital assets. This includes 12.8% income tax and 18.6% social security contributions.

Some investors can choose to be taxed under the progressive income tax scale instead. The flat rate is the default.

The tax would apply only to gains, not to the full value of each swap. Gains would be calculated after subtracting purchase costs and eligible fees.

For crypto bought at different prices, the proposal would use an average cost method. Investors holding assets before 2027 could use their recorded purchase cost or spread the cost of their whole portfolio as of December 31, 2026.

Lawmakers are reviewing other crypto tax changes too. One committee-approved amendment would extend France’s exit tax to some crypto holders who leave the country.

That rule would cover people who lived in France for at least six of the last ten years and hold portfolios worth more than €800,000. It would also start on January 1, 2027.

Another adopted proposal would let investors use crypto losses to offset digital asset gains for up to ten years. Currently, losses can usually only offset gains made in the same tax year.

A separate amendment would require investors to report self-custody wallets holding at least €100,000 at year-end. Violations could bring penalties of up to €10,000, but this proposal is still pending and has not received committee approval.

Committee approval is not final adoption. The 2027 budget, including the stablecoin tax measure, still has to be debated in Parliament before any of these changes become law.

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