France Introduces Wealth Tax on Large Crypto Holdings, Labeling Them “Unproductive Assets”
France has approved a new tax targeting individuals with large cryptocurrency holdings, describing such assets as forms of “unproductive wealth.” The measure marks a major policy shift in how the country treats digital assets and signals the government’s intent to channel dormant capital toward more productive sectors of the economy.
Under the new law, reported by Coin Bureau, residents with total net assets exceeding €2 million will be required to pay a 1% annual wealth tax. Unlike the previous system, which focused primarily on real estate, the revised framework expands to include digital assets, yachts, luxury cars, and unused property. Lawmakers say the goal is to ensure that wealth not actively invested in the economy contributes its fair share to public finances.
“We’re bringing fairness to the tax system,” said one French legislator involved in the discussions. “Digital assets should be treated like any other form of wealth that sits idle while the broader economy seeks capital.”
Crypto Investors Face New Reporting Obligations
The tax applies even if crypto assets are not sold, meaning unrealized gains may now count toward taxable wealth. Residents must declare their full holdings, including digital wallets and foreign exchange accounts, to ensure transparency and compliance.
Previously, France taxed cryptocurrencies only when profits were realized through sales. The inclusion of unsold holdings represents a significant broadening of scope, compelling crypto investors to engage in more detailed financial planning and valuation tracking.
Balancing Fairness and Innovation
Supporters argue the measure enhances tax equity and closes loopholes that allowed wealthy citizens to avoid taxation by keeping their funds in crypto. The government hopes the policy will generate additional public revenue while nudging high-net-worth individuals to invest in productive activities such as business ventures or innovation.
Critics, however, warn that the move could discourage investment and innovation in France’s digital economy. They argue that labeling cryptocurrencies as “unproductive” overlooks their growing role in funding startups and developing Web3 infrastructure. Some also fear that stricter taxation could push investors to relocate their assets or even themselves to more crypto-friendly jurisdictions.
There is no doubt that the new regulation highlights how seriously governments are now treating digital assets as part of national wealth. For French investors, cryptocurrencies are no longer viewed solely as speculative instruments but as integral components of taxable wealth portfolios.
The message is clear: crypto holders in France must stay informed, remain compliant, and adapt their financial strategies to align with the evolving regulatory environment.
