France: MPs reject two exit tax amendments on cryptos

MEPs rejected the extension of the exit tax to unrealized capital gains on cryptos during a fiscal departure from France. This relief, however, remains partial: the 2027 budget contains other measures likely to more directly modify the daily taxation of investors, in particular on stablecoins and self-hosted wallets.

The exit tax is rejected, but the file remains open

The first rejected proposal aimed to integrate cryptos into the general exit tax mechanism, while the tax administration could receive data from foreign platforms. Defended by MP Nicolas Sansu, it was based on the principle that a taxpayer leaving France with cryptos should be treated like one who transfers his tax domicile with significant financial holdings.

The amendment was rejected by 55 votes to 27. Nicolas Sansu presented this tax as a device “anti-abuse”intended to guarantee the taxation in France of a capital gain accumulated in the territory before a departure motivated by tax optimization.

A second version proposed a regime specific to cryptos. His main conditions were as follows:

• Hold more than 800,000 euros in cryptos at the time of departure;
• Have resided for tax purposes in France for at least six of the previous ten years;
• Calculate the latent capital gain on the entire portfolio;
• Include funds held on platforms or personal wallets;
• Apply the system to departures occurring from 1^er January 2027.

The text provided for payment suspension and relief mechanisms similar to those that exist for financial securities. He specified also that an exchange between two cryptos should not be assimilated to a taxable transfer in this context.

Its rejection means that the transfer of tax residence would not, as it stands, trigger immediate taxation of unrealized crypto gains. However, it does not constitute definitive protection: the finance bill must still continue its journey through the Senate, then possibly go through a joint committee.

The vote on the part ” recipes “ has already been postponed twice due to the number of amendments remaining to be examined. The National Assembly has until November 17 to complete the first reading. If this part of the budget is rejected, the government’s initial text will be sent to the Senate without the modifications adopted by the deputies.

Stablecoins become the real fiscal turning point

The temporary disappearance of the exit tax could distract attention from a broader measure. An adopted amendment plans to end the tax deferment enjoyed by conversions from cryptos to stablecoins backed by fiat currencies.

Currently, an individual subject to the French tax regime generally only triggers the taxation of their capital gains when they exchange their cryptos for euros, a good or a service. A conversion from bitcoin to stablecoin remains an exchange between digital assets and therefore does not, in principle, create a tax event.

There measure adopted would modify this logic from 1^er January 2027. Converting BTC, ETH or another crypto to certain stablecoins could become taxable, even if the investor does not receive any euros in their bank account.

This change would have more frequent consequences than the exit tax. It would potentially concern all individuals using stablecoins to temporarily secure their earnings, wait for a new opportunity or transfer funds between platforms.

It would also create a cash flow risk. An investor could have to pay tax in euros after converting his cryptos into stablecoins, even though he would have kept all of his capital in the digital ecosystem.

Personal crypto wallets enter the declarative viewfinder

Another proposal plans to require the declaration of self-hosted wallets when their total value reaches at least 100,000 euros as of December 31. The system would concern wallets whose keys are controlled directly by their owners, without intervention from a platform.

The amendment adopted in committee foresees a penalty of up to 10,000 euros in the event of non-declaration. Its promoters believe that self-custody makes part of the crypto heritage difficult for the tax administration to identify.

This obligation would not directly create a new tax. However, it would strengthen the visibility of the administration on assets that are today more difficult to link to a taxpayer, while the European directive DAC8 must already develop the automatic exchange of information from crypto providers.

The 2027 budget thus reveals a reorientation of the tax debate. The Assembly has ruled out, for the moment, exceptional taxation linked to departure from France. At the same time, it is moving towards more regular control of conversions into stablecoins and assets kept outside the platforms.

For investors, the real issue is therefore no longer just whether their gains will be taxed when they leave France. It now consists of determining which operations and which methods of conservation must be declared or imposed from 2027.