French National Assembly Rejects Exit Tax for Cryptocurrencies

The French National Assembly has once again postponed the vote on the revenue part of the budget for 2027, highlighting the fierce political disputes in Paris. The vote, which was scheduled for October 20, was delayed due to over 2,000 amendments to be considered. Yesterday, lawmakers continued the debate; however, 758 proposals remained unaddressed, preventing a final vote. The deadline is November 17. The rejection of the revenue part of the bill by the deputies will send the project to the Senate without amendments. The debate centered around controversial proposals regarding the taxation of cryptocurrency investors relocating their tax residence. On Friday, parliament rejected proposals concerning an exit tax on unrealized gains from digital assets. The first proposal failed with a vote of 27 in favor to 55 against, while the second, concerning the taxation of unrealized gains for households with cryptocurrencies valued above 800,000 euros, was rejected 31 to 60. The rejection of these provisions brought relief to investors. Debates in parliament are still ongoing regarding other initiatives, including the obligation to report cryptocurrency holdings if their value exceeds 100,000 euros, and the exemption from taxation on gains from cryptocurrency transactions up to 1,000 euros per year. Final decisions will be made during the further legislative process.