France wants to tax you for moving into stablecoins, and for leaving the country with crypto

France’s National Assembly Finance Committee has approved amendments that would make some crypto-to-stablecoin swaps taxable and let investors carry crypto losses forward for 10 years.

A third proposal would tax unrealized gains of wealthy holders who move abroad. The measures, backed on October 7 as part of the 2027 budget debate, still need full parliamentary approval.

Ten-year crypto loss relief could benefit investors

Alongside the proposed stablecoin tax, lawmakers have supported a separate measure that could allow eligible cryptocurrency trading losses to be carried forward for up to 10 years and offset against qualifying gains in future tax periods.

The proposal offers a potential benefit for investors whose portfolios experience losses during market downturns but later recover. Under a loss carryforward system, eligible losses from one tax period can be used to reduce taxable gains in subsequent years, subject to the legislation’s conditions.

The proposed relief is particularly relevant to crypto markets, where price fluctuations can produce substantial gains and losses within relatively short periods. Investors who frequently rebalance their portfolios may welcome a framework that better accounts for losses incurred in earlier years.

The 10-year provision should not be interpreted as an automatic refund or a guarantee that every crypto loss will be deductible. Eligibility, documentation requirements, applicable tax categories, and restrictions on offsetting gains will determine how useful the provision becomes in practice.

The stablecoin tax and loss-relief measures would affect investors in different ways. The first could bring forward the point at which some gains become taxable, while the second could provide greater flexibility in managing the tax consequences of losses across multiple years.

Together, the proposals indicate that French lawmakers are considering both tighter taxation of selected transactions and a more flexible treatment of investment losses.

Proposed crypto exit tax raises relocation concerns

A third measure under consideration could introduce an exit tax on certain unrealized cryptocurrency gains when eligible investors transfer their tax residence outside France.

Unlike the proposed stablecoin tax, which concerns specific transactions, the exit-tax proposal focuses on investors who leave the French tax system while holding digital assets that have appreciated in value.

The relevant amendment outlines conditions that include French tax residence for at least six of the preceding 10 years and a combined crypto portfolio value exceeding €800,000.

Under the proposal, qualifying unrealized gains could become subject to taxation when the investor transfers their tax residence abroad.

The official amendment describes the proposed approach as follows: “Les contribuables fiscalement domiciliés en France pendant au moins six des dix années précédant le transfert de leur domicile fiscal hors de France sont imposables” — National Assembly, Amendment I-CF1822.

The provision remains a proposal rather than a confirmed new obligation. Its eventual impact will depend on the final legislation, including the conditions governing eligible taxpayers and the treatment of unrealized gains.

What the stablecoin tax means for crypto investors

The proposed stablecoin tax could require a reassessment of common portfolio-management strategies. Stablecoins are frequently used to preserve value during market uncertainty, move between trading positions, and maintain exposure to the digital asset ecosystem without holding more volatile cryptocurrencies.

If converting eligible crypto assets into qualifying stablecoins becomes taxable, investors may need to consider potential tax liabilities before executing transactions that previously allowed them to defer taxation.

The official amendment explains its rationale in these terms: “Le présent amendement vise à supprimer le sursis d’imposition” — National Assembly, Amendment I-CF1826. The statement refers to the proposed removal of tax deferral for the specified stablecoin conversions.

Investors should distinguish between a proposal approved by a parliamentary committee and a tax rule that has completed the legislative process. Until the measures are finalized, their precise scope, effective dates, and practical requirements could change.

If the stablecoin tax takes effect as proposed, investors may need to maintain more detailed transaction records, including acquisition prices, conversion dates, disposal values, and relevant fees.

The proposed loss carryforward could also make comprehensive recordkeeping more important. Investors seeking to use losses from previous years would need evidence that the losses qualify under the eventual rules and can be applied against the relevant gains.

The proposals also have implications for France’s wider digital asset market. A clearer and more comprehensive tax framework could reduce uncertainty around the treatment of certain transactions, but additional tax obligations could influence where investors choose to trade, hold assets, or establish tax residence.

Conclusion

France’s proposed 2027 budget amendments represent a potentially important shift in cryptocurrency taxation. The proposed stablecoin tax could make certain crypto-to-stablecoin conversions taxable, while the 10-year loss carryforward proposal could help eligible investors offset future gains.

A separate exit-tax measure could affect some high-value portfolios held by people relocating abroad.

The key issue is not simply whether taxes will increase or decrease, but how the proposed rules interact with trading strategies, portfolio performance, and long-term financial planning. The amendments have received committee support, but further parliamentary approval remains necessary before investors can treat them as established law.

Investors should follow official legislative updates and seek advice from a qualified French tax professional before making decisions based on the proposals.