Taxation of cryptocurrencies: Switzerland vs France, where is it more advantageous to invest?

The tax regimes of cryptocurrencies in France and Switzerland have major differences. If Switzerland is recognized for its advantageous taxation for private investors, France applies stricter taxation with a flat tax of 30 % on capital gains made. Here is a detailed comparison of tax obligations in these two countries.

Cryptocurrencies in Switzerland: mild taxation for private investors

Switzerland is considered a tax haven for cryptocurrency investors. Capital gains from crypto trading are exempt from tax for individuals, provided they are not classified as professional traders.

What taxes for crypto holders in Switzerland?

• Fortune tax: Cryptos are considered as taxable assets for wealth tax. The rate varies from 0.1 % to 1 % depending on the cantons.
• Income tax: If cryptos are obtained by mining, stinging, lending or yield farming, these income is subject to income tax, with rates up to 40 % depending on the cantons.
• Professional traders: Those who make frequent transactions, use the lever effect or generate a main income from trading are imposed on their earnings, with a rate of up to 40 %.

Tax advantages in Switzerland

• No capital gains tax for private investors.
• VAT exemption from cryptos transactions.
• Taxation that varies according to the cantonsallowing to optimize the tax burden.

The taxation of cryptos in France: strict taxation on capital gains

In France, since 2019, cryptocurrency transactions have been subject to a Specific tax regime. Any conversion of cryptos into euros is taxable, even if the investor does not remove the money from his exchange platform.

How are cryptos in France taxed?

• Flat tax of 30 %: the capital gains made by an individual are subject to a single flat-rate levy (PFU) of 30 %, including 12.8 % tax and 17.2 % of social security contributions.
• Declaration of foreign accounts: The French must declare their Crypto accounts held on foreign platforms via the 3916 form on penalty of a fine of € 750 to € 1,500 per unorganized account.
• Professional investors: Those who perform high frequency trading or use advanced tools can be reclassified under the BNC (non -commercial profits) or BIC (industrial and commercial profits), with taxation to the progressive scale of up to 45 %.

Possible exemptions in France

• The capital gains are exempt if the total sales of Cryptos does not exceed € 305 per year.
• Crypto-Crypto exchanges are not imposed, only the passage in Fiat East currency.
• Possibility to opt for taxation on the progressive scale, interesting for low incomes.

Comparative table: Cryptos taxation in Switzerland and France

Which country to choose to optimize its crypto taxation?

The choice between France and Switzerland depends on your activity in cryptocurrencies:

• If you are a private investor who buys and sells cryptos without intensive trading, Switzerland is much more advantageous, because you will not pay tax on your capital gains.
• If you generate income thanks to Staking, Mining or Yield Farming, you will be imposed in Switzerland as in France, but Switzerland offers more competitive rates according to the canton.
• If you are a professional trader, Switzerland also imposes profits, but Taxation remains more modular according to the cantons.

Regulations are quickly evolving, and the taxation of cryptocurrencies in Europe could still change. But for the moment, Switzerland remains more attractive fiscally than France for Crypto investors.