France Rejects Crypto Exit Tax as 2027 Budget Vote Is Delayed Again
France's National Assembly rejected two amendments that would have taxed unrealized crypto gains when residents move abroad, and has postponed the revenue vote again to November 3. Proposals on self-custody reporting and stablecoin conversions remain under consideration in the draft budget.
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Exit Tax Amendments Fail
The National Assembly rejected amendment I-3904 on October 30, which would have extended France's existing exit tax to crypto holdings. The vote was 27 in favor, 55 against and one abstention. A second amendment, I-3432, proposed taxing unrealized gains above EUR 800,000 (roughly $897,000) for investors who had been French tax residents for at least six of the previous ten years. It failed 60 to 31.
The Defiant's reporting framed the outcome as a defeat for lawmakers seeking to tax unrealized crypto gains, while Crypto.news reported the same two votes with the full voting tallies. Both agree the exit-tax proposals are no longer part of the budget text approved so far.
Revenue Vote Postponed Again
A parliamentary notice issued after Monday's session showed the revenue section will continue to be examined on November 3. As of that notice, 758 amendments were still awaiting debate. The vote was previously postponed on October 20, when more than 2,000 amendments were unresolved. Lawmakers spent the week before October 27 on social security financing before returning to the revenue provisions.
Measures Still Pending
The Defiant describes a stablecoin-swap tax as remaining in the provisional budget text. Crypto.news reports that on October 16 the Assembly approved an amendment making certain conversions into qualifying fiat-backed stablecoins taxable, which would narrow the current treatment of exchanges between cryptocurrencies. A separate amendment sought to let qualifying crypto losses offset gains over a ten-year period. Neither measure is law until the budget passes.
Committee-approved proposals also include a requirement that holders of at least EUR 100,000 (about $112,000) in self-custodied crypto report those assets to tax authorities, with penalties of up to EUR 10,000 for non-declaration. Another proposal would exempt crypto payments for goods and services from capital gains tax where total qualifying payments stay under EUR 1,000 in a tax year. Committee approval does not make these binding.
Timeline
With the revenue vote slipping twice and hundreds of amendments outstanding, the budget's final shape on crypto remains open. The sources do not specify when the full budget must pass or how the remaining amendments will be sequenced.
Why It Matters
For Traders
Rejection of the exit tax removes one near-term tax overhang for French holders, but the stablecoin conversion tax still pending could affect swap activity once the budget is finalized.
For Investors
France is moving toward treating self-custody holdings and stablecoin conversions under tax reporting rules, a structural signal for how European states may approach unrealized crypto gains.
For Builders
Proposed self-custody reporting thresholds and stablecoin conversion taxation would affect wallet design and on-ramp flows for French users if enacted.
This article is for information only and is not financial advice. Read the full disclaimer.
