France Proposes 1% Wealth Tax on Large Crypto Holdings as ’Unproductive Assets’
French lawmakers have narrowly approved an amendment to classify cryptocurrency holdings exceeding €2 million as 'unproductive wealth,' subjecting them to a proposed 1% flat tax rate. The measure passed the National Assembly 163-150 with cross-party support, though it still requires Senate approval and inclusion in the 2026 budget to become law.
The amendment replaces France's real estate-focused IFI wealth tax with a broader framework targeting multiple asset classes. Centrist legislator Jean-Paul Matteï spearheaded the change, arguing the current system creates inequities. An accompanying tobacco excise tax aims to offset potential revenue losses.
This marks France's second major wealth tax overhaul since 2018, when it abolished its general wealth levy in favor of the IFI system. The move reflects growing regulatory scrutiny of crypto assets in Europe despite their increasing institutional adoption.
