French finance committee approves tax on stablecoin conversions and crypto exit tax for 2027

The French National Assembly Finance Committee approved tax amendments for 2027 targeting cryptocurrency holders, including taxing stablecoin swaps and applying an exit tax on crypto assets over €800,000 for departing residents. However, the committee rejected the budget revenue section 31-3 on October 9, 2026, requiring floor debate to start from the original draft on October 13. The proposals reflect tightening oversight under EU MiCA rules, alongside a 10-year loss carryforward measure.

Taxation of stablecoin conversions

• ▪The French National Assembly Finance Committee approved an amendment filed by Deputy Nicolas Sansu to treat swaps of cryptocurrency into MiCA-regulated stablecoins as taxable sales starting January 1, 2027
• ▪Under French tax rules prior to the proposed 2027 amendment, swapping cryptocurrency for stablecoins triggers no immediate tax liability until gains are sold for fiat currency or spent

Proposed crypto exit tax rules

• ▪The proposed French crypto exit tax applies to taxpayers resident in France for at least six of the previous ten years and requires declaring all self-custodial and foreign-held digital assets
• ▪The French Finance Committee approved an amendment proposed by Nicolas Sansu extending France's exit tax to cryptocurrency holdings exceeding €800,000 for tax households relocating abroad starting January 1, 2027

French flat tax rate

• ▪The proposed French stablecoin tax amendment does not specify a tax rate and defers to France's flat tax rate
• ▪France's flat tax rate on investment gains increased to 31.4% after France's 2026 social-security financing law lifted the social-charge portion from 17.2% to 18.6%

Budget vote process and timeline

• ▪The French National Assembly is scheduled to open floor debate on the 2027 budget's revenue section 31-3 on October 13, 2026, with a formal vote set for October 20, 2026
• ▪On October 9, 2026, the French Finance Committee rejected the 2027 budget revenue section by a 31-to-3 vote, requiring floor debates to start from the government's original draft without committee amendments

MiCA regulatory framework for stablecoins

• ▪In October 2024, cryptocurrency exchange Coinbase announced plans to delist non-MiCA-compliant stablecoins for European Union customers by December 30
• ▪The European Union's Markets in Crypto-Assets (MiCA) framework classifies single-currency stablecoins as electronic money tokens

Debatable claims

• ▪Allowing ten-year crypto loss carryforwards provides essential tax equity for investors
• ▪Stricter crypto tax rules risk driving French Web3 entrepreneurs abroad
• ▪Extending France's exit tax to crypto holdings establishes parity with traditional stocks
• ▪France should tax cryptocurrency conversions into stablecoins