France Proposes Exit Tax on Unrealized Crypto Gains

French lawmakers have introduced a bill that would tax crypto holders on unrealized profits when they leave the country, even without a sale. The exit tax would apply to portfolios worth over €800,000, or about $900,000.

France already imposes this tax on shares when wealthy residents depart. Cryptocurrencies have been exempt, and the plan might still be defeated in a debate beginning Tuesday.

Mechanics of France's Crypto Exit Tax

The measure is an amendment to France's 2027 budget bill. Left-wing deputy Nicolas Sansu submitted it with 16 co-signers, and the National Assembly's finance committee adopted it on October 8, according to a Paris law firm.

The tax targets gains that exist only on paper. A person who spent €200,000 on coins now worth €1 million holds an €800,000 paper gain, taxable upon moving even without a sale.

It would affect anyone who has lived in France for six of the past ten years. Coins on trading platforms are included, as well as coins in personal wallets, even those held abroad.

Leavers would also need to list all crypto holdings on their tax return. The authors argue that someone leaving with millions in crypto currently avoids a tax that a shareholder of equal wealth must pay.

Stablecoin Conversions Face Same Deadline

A separate Sansu proposal, adopted on October 7, targets stablecoins. These are digital tokens pegged to a currency like the dollar or euro.

BREAKING: 🇫🇷 FRANCE JUST ADVANCED A MAJOR BILL TO TAX #BITCOIN AND CRYPTO STARTING NEXT YEAR

‼️ STABLECOIN CONVERSIONS WOULD BE TAXABLE

‼️ AN EXIT TAX IF YOU LEAVE WITH OVER €800,000 IN CRYPTO

‼️ A PROPOSAL TO FORCE WALLET DECLARATIONS OVER €100,000

THEY'RE BUILDING ONE OF… pic.twitter.com/HbQIkzEDyl

— The Bitcoin Historian (@pete_rizzo_) October 9, 2026

Currently, trading Bitcoin for a dollar-pegged token is not taxed in France until the holder converts to cash. From January 2027, that swap would count as a sale, taxed at France's 31.4% flat rate.

The authors describe the current treatment as a loophole in the law. They note that the UK and Italy already tax such swaps.

Both measures now hang on a reset. On October 9, the committee voted 31 to 3 to reject the entire tax section of the budget, so debate restarts Tuesday from the government's original text.

Each measure must pass again there, then clear the Senate.

France is not alone in eyeing crypto wealth. Britain's tax agency now runs a billionaire compliance push and will receive crypto exchange data from 2027. The EU has released a $23 billion tax forecast for crypto.