France’s proposed “unproductive wealth” tax has raised eyebrows among crypto investors, but most investors will not be affected. By raising the tax threshold to 2 million euros, the measure will only target the ultra-wealthy. Every day, crypto holders will remain out of its reach.
The real impact lies not in new tax burdens but in how France redefines digital assets within its broader fiscal policy.
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Cryptocurrency added to “unproductive wealth” list
France is moving ahead with plans to include cryptocurrencies in a revamped wealth tax after lawmakers narrowly approved an amendment that would classify digital assets as “unproductive wealth.”
The bill was proposed by centrist deputy Jean-Paul Mattei and passed by parliament by a vote of 163 to 150 during deliberations on the 2026 budget. This would replace the current real estate wealth tax with a broader tax targeting assets deemed economically inactive.
The reform would expand taxation to include not only virtual currencies but also luxury goods such as yachts, private jets, jewelry, and artwork. The tax threshold will be increased from 1.3 million euros to 2 million euros, and a flat 1% tax rate will be introduced on net assets above that amount.
Supporters say the goal is to direct wealth to productive investments that foster economic growth.
For crypto investors, this immediately raises questions. Does owning Bitcoin or Ethereum make someone liable? For most people, the answer is no.
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The higher the standard value, the smaller the impact on taxes.
As BeInCrypto France reported this week, the tax is designed to only affect the wealthiest households. This move will have little impact on retail investors and most crypto traders.
The threshold is likely to rise to €2 million, meaning even fewer people will be eligible. Someone with 100,000 euros in Bitcoin is unlikely to go into debt. Only those whose wealth is concentrated in passive assets such as gold, art, and cryptocurrencies may be affected.
Still, the inclusion of digital assets has destabilized parts of France’s cryptocurrency industry. Many industry observers see the move as a sign that innovation is being misinterpreted as inactivity.
Industry fears a setback in innovation
France has established itself as a major European hub for Web3 in recent years, attracting major companies such as Binance and Ledger.
However, the new proposal has sparked criticism from the crypto community, who argue that it will undermine the industry’s contribution to innovation and growth.
Some fear it sends the wrong message and could discourage long-term investment when countries like Portugal and Dubai offer much more favorable tax environments.
However, the government estimates that the reforms could bring in revenues of between 1 billion and 3 billion euros a year, although the figure remains unclear.
For now, this measure is still under consideration. It must pass the Senate and be included in the 2026 state budget before becoming law, possibly as early as January.
