France postpones 2027 budget vote, crypto exit-tax proposals scrapped
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France’s 2027 budget process has slipped again, with lawmakers also dropping two proposals to tax unrealized crypto gains when residents move abroad. One remaining crypto-related measure in the provisional text would tax stablecoin swaps, while a separate reporting rule for large self-custody holdings was removed from the draft.
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What it means
France has taxed unrealized capital gains on financial assets since an 'exit tax' regime aimed at stopping wealthy residents from relocating before cashing out equity stakes. The 2027 draft budget tried to extend that logic to crypto holdings for the first time. Two amendments, numbered 3904 and 3432, sought this extension inside a revenue section already strained by 758 pending amendments and a National Assembly that has now delayed the vote twice.
Crypto holders considering a move abroad no longer face a tax bill on paper gains simply for changing residency, after both amendments were voted down by margins of 27-55 and 31-60. Self-custody wallets holding over €100,000 also escape a disclosure requirement that has been stripped from the draft. Stablecoin users are not spared: a swap tax remains in the provisional text, meaning conversions between fiat-pegged tokens still carry a cost lawmakers have yet to remove.
Exit taxes exist to protect a state's revenue base against capital flight, but applying them to crypto runs into a problem equities don't pose: assets that are instantly portable and often held outside any custodian a tax authority can query. Scrapping the €100,000 self-custody reporting rule is a tacit admission of that enforcement gap, and it sits uneasily next to a stablecoin tax that assumes the opposite - that transactions can be tracked and taxed at the point of exchange. (per crypto.news)
The first-reading deadline on Nov. 17 is the next fixed point, with the revenue section's fate tied to how the Assembly works through the remaining pending amendments before then. A vote that keeps the stablecoin swap tax while leaving exit taxation and self-custody reporting out would mark a narrower, more targeted approach to crypto in French tax law than the original draft attempted.
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