France approves taxation on stablecoin transactions in 2027 fiscal legislation
The Finance Committee of France has endorsed taxation measures targeting stablecoin conversions and unrealized cryptocurrency profits for affluent households exceeding 800,000 euros relocating internationally.
The Finance Committee within France's National Assembly has given its approval to a series of proposals targeting the taxation of exchanges converting cryptocurrencies into stablecoins pegged to fiat currencies, while simultaneously broadening the nation's exit taxation framework to encompass digital asset investors.
The legislative amendment identified as I-CF1826, which was put forward by Nicolas Sansu, a member of the French Parliament, and formally adopted on Wednesday, seeks to classify cryptocurrency conversions into stablecoins backed by fiat currencies as events that trigger taxation beginning Jan. 1, 2027.
According to a machine-generated translation, the accompanying explanatory documentation characterizes the existing tax framework as representing a "loophole in the legislation."
The calculation methodology for taxable profits would utilize the original acquisition cost of the disposed digital assets, applying a weighted average calculation method for token holdings that were purchased at varying price points.
The complete Assembly body has been slated to commence its examination of the Finance Bill for 2027 on Tuesday, Oct. 13. Should the legislation be passed into law, cryptocurrency investors may face capital gains taxation obligations even when they have not converted their holdings into traditional fiat currency.
Another legislative amendment, I-CCF798, introduced by MP Daniel Labaronne and similarly adopted on Wednesday, would grant investors the ability to carry forward documented cryptocurrency losses for a period spanning 10 years. A separate amendment addressing exit taxation that received approval on Thursday would encompass unrealized capital gains in situations where taxpayers possessing household cryptocurrency portfolios valued above 800,000 euros ($895,000) relocate their tax residences to foreign jurisdictions.
European crypto tax proposals take different approaches
Earlier this week on Wednesday, a draft legislative bill was made public by Greece's Ministry of National Economy and Finance, introducing a proposed 10% taxation rate on cryptocurrency capital gains earned by individual investors, while simultaneously providing an exemption threshold for yearly gains reaching up to 500 euros ($560).
In contrast to the French proposal's taxation framework for conversions, the Greek legislative proposal would maintain cryptocurrency-to-cryptocurrency transactions as non-taxable events.
France, along with additional member nations of the European Union, face obligations to implement the tax reporting regulations established under the bloc's eighth amendment to the Directive on Administrative Cooperation (DAC8).
Under DAC8 provisions, cryptocurrency service providers face mandatory requirements to gather their users' identifying information and transaction-related data, subsequently reporting this information to their respective national tax authorities, which proceed to share the compiled information with their equivalent agencies throughout EU member states. These cryptocurrency reporting obligations took effect starting Jan. 1, 2026. The initial exchanges of compiled information pertaining to transactions conducted during 2026 have a deadline of Sept. 2027.