French lawmakers have approved a controversial amendment that would classify major cryptocurrency holdings as “unproductive wealth,” making them subject to a 1% annual tax on total idle assets exceeding €2 million. The measure, part of France’s evolving 2025 budget, marks one of the most aggressive fiscal proposals yet toward digital assets in the European Union.
Under the amendment, the new wealth levy would apply to unrealized gains on cryptocurrencies such as Bitcoin, as well as other assets deemed “non-productive,” including unused real estate and luxury goods. Investors would therefore owe taxes on paper gains, even if no sale or conversion to euros has occurred. This approach represents a major shift from traditional tax regimes, which generally target realized profits.
The 1% flat tax would be triggered on total assets above €2 million, though lawmakers have also proposed raising the overall wealth tax exemption threshold to €2.57 million. Officials argue that the measure could replace the country’s existing real estate wealth tax, broadening the scope to include digital and luxury assets.
Supporters of the proposal, primarily from France’s left-leaning political bloc, frame it as a way to ensure wealthier citizens contribute more amid slowing economic growth. Critics, however, warn that it could deter investment and drive crypto capital abroad, undermining France’s recent efforts to attract digital asset innovation.
While the amendment has cleared both the Senate (2024) and the National Assembly (November 2025), the legislation is not yet final and may still face revisions before becoming law. If enacted, France would become the first major European economy to impose an annual tax on unrealized crypto gains, potentially setting a global precedent in digital wealth taxation.
