Do I have to declare my cryptocurrency portfolio to the FISC?

The saver must declare once a year the sales, purchases of services with cryptocurrencies or the possession of an account on a platform hosted abroad (source: investir.lesechos.fr).

How are cryptocurrencies taxed?

By declaring your assets in digital currencies to the tax authorities of your country (the Fisc for France), you will be taxed only on the profits generated after a buy-sell transaction.

Taxation only applies once you have converted your profits into the national currency (€ / $, etc.)

Example when you are not taxable :

You buy a Bitcoin for €25,000 and then its price reaches €45,000 – as long as you do not convert your Bitcoin to Euro, you are not taxable on the €20,000 of profit.

Example when you are taxable:

You buy a Bitcoin for €25,000 and then its price reaches €45,000 – you convert your Bitcoin to Euro, and you transfer this amount to your normal account. You are taxable on your  €20,000 of profit.

What is the tax rate for cryptocurrencies?

The tax rate on the profits is 30% on the profits converted into €.

Example when you are taxable:

You buy a Bitcoin for €25,000 and then its price reaches €45,000 – you convert your Bitcoin to Euro, and you transfer this amount to your normal account. You are taxable on your  €20,000 profit.

In this case, you are liable for a tax of 6 000 € on your 20 000 € of profit.

However, you are not taxable, if your capital gains do not go over 304€ per year when converted to €.

Does Union Btc give tax advice?

Yes, our tax specialists are at the disposal of our clients. Do not hesitate to contact us by email or by chat.