Why France’s New Wealth Tax Won’t Necessarily Target Your Crypto — Yet

France's proposed 'unproductive wealth' tax has sparked conversations among crypto investors. However, most everyday crypto holders will not be affected. By raising the taxable threshold to €2 million, the measure specifically targets the ultra-wealthy. The real significance of the tax lies not in imposing additional burdens but in how France is redefining digital assets within its fiscal framework.

France has moved to include cryptocurrency in its revised wealth tax category, following the National Assembly's narrow approval on an amendment. Proposed by centrist deputy Jean-Paul Mattei, this measure passed by 163 votes to 150 during discussions of the 2026 draft budget. The reform replaces the existing real estate-focused wealth tax with a broader version targeting economically inactive assets, including large cryptocurrency holdings.

The updated law introduces a 1% tax on net assets exceeding €2 million, covering digital assets, luxury items such as yachts, private jets, jewelry, and art. The taxable threshold has been raised from €1.3 million to €2 million, aiming to encourage investments in areas that promote economic growth, according to supporters.

For crypto investors, this raises a key question: Does holding Bitcoin or Ethereum create tax liabilities? For most, the answer is no, as only significant net assets beyond the new €2 million threshold are impacted.

BeInCrypto France notes that the new tax primarily targets the wealthiest households, leaving ordinary crypto holders and traders unaffected. For instance, someone holding €100,000 in Bitcoin would not come close to facing tax liabilities. However, those with substantial portfolios concentrated in gold, art, or cryptocurrency may feel the impact. While this policy narrows its scope, parts of France's crypto sector are concerned, interpreting the inclusion of digital assets as a sign that innovation is being mischaracterized as inactivity.

France has previously positioned itself as a hub for Web3 innovation, attracting companies like Binance and Ledger. However, this new tax proposal has drawn criticism from the crypto community, which views it as an obstacle to innovation and economic contributions. Some argue that it sends an unwelcoming message to investors, especially as other countries like Portugal and Dubai offer friendlier tax environments.

Critics point out the irony in taxing 'unproductive wealth,' questioning its alignment with fostering long-term growth. Despite these concerns, the government estimates the proposal could generate €1–3 billion annually, though this figure remains uncertain.

The measure still faces several stages of approval, with the Senate needing to review and incorporate it into the 2026 national budget before implementation, potentially as early as January. Despite the uncertainty, the move reflects France's evolving fiscal policies and its attempt to expand the tax base while addressing modern financial innovations.