France Advances Stablecoin Tax Plan And Loss Carryforward

French lawmakers have approved committee proposals to tax cryptocurrency conversions into qualifying stablecoins starting January 1, 2027, and allow eligible crypto trading losses to offset future gains for up to 10 years as part of the country’s proposed 2027 budget.

According to French National Assembly records, the Finance Committee adopted the stablecoin taxation amendment on October 7, alongside a separate measure intended to change how losses from digital asset transactions can be deducted. Lawmakers also considered a proposed exit tax for wealthy investors moving their tax residence outside France. All three amendments require further parliamentary approval before becoming law.

Stablecoin Tax Proposal

Under amendment I-CF1826, submitted by lawmaker Nicolas Sansu, conversions from cryptocurrencies into qualifying electronic money tokens would become taxable transactions beginning January 1, 2027. Current rules generally allow individuals to exchange one cryptocurrency for another without immediately recognizing a taxable capital gain under deferral provisions.

Sansu’s proposal removes this exemption for exchanges where investors receive electronic money tokens defined under the European Union’s Markets in Crypto-Assets Regulation. Documented transaction expenses could be deducted, and investors purchasing cryptocurrencies before January 1, 2027, would choose between documented purchase prices or portfolio cost allocation.

Loss Relief And Exit Tax

Alongside the stablecoin proposal, the Finance Committee approved amendment I-CF798, submitted by Daniel Labaronne, permitting qualifying capital losses from digital asset disposals to be carried forward for 10 years. Under existing rules, losses generally only offset gains arising during the same tax year.

Additionally, the committee adopted amendment I-CF1822 on October 8, targeting unrealized gains for qualifying crypto holdings exceeding 800,000 euros when eligible taxpayers relocate their tax residence abroad.

Key facts

• The Finance Committee adopted the stablecoin taxation amendment on October 7, targeting conversions beginning January 1, 2027.
• Amendment I-CF798 allows qualifying capital losses from digital asset disposals to be carried forward for 10 years.
• An exit tax proposal targets unrealized gains on qualifying crypto holdings exceeding 800,000 euros for relocating taxpayers.
• All three proposed amendments require further legislative review and parliamentary approval.