The new tax in France would target holders of digital assets exceeding €2 million, equating cryptocurrencies with unproductive goods.
French lawmakers have taken another step toward introducing a new form of taxation that will also affect the digital asset sector. On October 31, the National Assembly, the lower house of the French Parliament, approved an amendment redefining the concept of “unproductive wealth” and expanding its taxability.
Centrist MP Jean-Paul Matteï introduced the amendment on October 22, securing approval with 163 votes in favor and 150 against. Support came from a coalition including both socialists and far-right parliamentarians.
The legislative proposal still needs to pass the full parliamentary process, including the Senate, before becoming law. However, its first reading approval signals the fiscal direction France intends to take for the 2026 budget.
In the explanatory report, Matteï criticized the current property wealth tax law as “economically inconsistent” because it excludes many assets considered unproductive. These include gold, collectible coins, classic cars, yachts, and artworks. The MP argues that the reform would encourage productive investments, as the current system does not adequately account for assets that “contribute to the dynamism of the French economy.”
The definition of “unproductive goods” has been significantly expanded to now include:
- non-productive real estate;
- valuable items such as jewelry and private aircraft;
- digital assets, including cryptocurrencies.
The threshold for application is set at €2 million of unproductive wealth, up from the current €1.3 million limit under the property wealth tax.
The new tax system imposes a flat 1% rate on the value of unproductive assets exceeding the €2 million threshold. This simplifies the current progressive system, which ranges from 0% for estates under €800,000 up to 1.5% for those over €10 million.
The amendment has drawn strong criticism from the digital asset sector. Éric Larchevêque, co-founder of Ledger, expressed his strong opposition:
“This law punishes all savers who want to financially anchor themselves in gold and Bitcoin to protect their future.”
Larchevêque highlighted that many French crypto holders could be forced to liquidate part of their digital assets to pay the tax if they lack other liquid resources.
“This is a major ideological error,” added the Ledger founder, “but it reveals a fiscal shift: punishing the holding of value outside the fiat monetary system.”
Another concern is the possibility that the €2 million threshold could be lowered in the future, extending taxation to a broader range of investors.
“There is certainly still a legislative process for this to be included in the 2026 PLF [budget],” concluded Larchevêque, “but the probability of it coming into effect on January 1 remains strong.”
