France's Wealth Tax Reform
France is taking a bold step toward reshaping its wealth tax system. Lawmakers in the National Assembly have voted in favor of an amendment that would expand the country’s tax net to include “unproductive wealth,” such as luxury items, certain real estate holdings, and, most notably, cryptocurrencies.
The amendment, introduced by Centrist MP Jean-Paul Matteï on October 22, was narrowly approved late Friday with a vote of 163 to 150, backed by both socialist and far-right members. While the measure has cleared a significant hurdle, it must still pass through the Senate as part of France’s 2026 budget debate before becoming law.
Matteï argued that the current real estate wealth tax is “economically inconsistent,” as it excludes assets that do not actively contribute to the economy. “Gold, coins, classic cars, yachts, and works of art are exempt,” he noted, calling the change necessary to encourage productive investment and ensure fairness across asset types.
Crypto Included Under “Unproductive” Assets
Under the proposed changes, the definition of taxable wealth will broaden to include “non-productive” assets such as private aircraft, luxury collectibles, and digital assets like Bitcoin and other cryptocurrencies. Only individuals with holdings exceeding 2 million euros ($2.3 million) will be taxed, compared to the current threshold of 1.3 million euros.
The tax rate will also shift from a progressive structure to a flat 1% tax on all assets above the new threshold. Currently, the rate ranges from 0% for assets below 800,000 euros to 1.5% for holdings exceeding 10 million euros.
This change effectively places crypto assets in the same category as gold and art, valuable but “unproductive” forms of wealth. The move has sparked debate among financial experts and the crypto community, many of whom argue that digital assets play an increasingly important role in innovation and the broader economy.
Crypto Industry Voices Concern
The proposal has already drawn criticism from industry leaders. Éric Larchevêque, co-founder of crypto wallet maker Ledger, said the amendment “punishes all savers who wish to anchor their finances in gold or Bitcoin to protect their future.”
He warned that the measure reflects an ideological bias against decentralized assets, labeling it “a major error that punishes holding value outside the fiat system.” Larchevêque also expressed concern that crypto holders might be forced to sell their assets to pay the tax if they lack sufficient liquidity.
Although the measure still faces parliamentary review, Larchevêque cautioned that its implementation by 2026-start remains likely. This signals potential challenges ahead for France’s crypto investors.