"Unproductive Wealth" Levy Approved by National Assembly
France’s National Assembly has approved an amendment that reframes its property wealth tax into an “unproductive wealth” levy and explicitly pulls digital assets into scope. The vote was narrow, 163 to 150, and forms part of the 2026 budget package that still requires Senate review.
Defining "Unproductive Wealth"
The text targets assets viewed as idle rather than productive. Alongside yachts, art, collectibles, and certain insurance contracts, the definition now lists “actifs numériques,” which means cryptocurrencies would count toward the taxable base. Lawmakers presented the measure as a nudge toward investment in productive assets rather than a culture war over wealth.
Two elements matter most for investors. First, the rate. The amendment replaces the old progressive schedule with a single 1 percent levy applied to the taxable slice of “unproductive” wealth. Second, the threshold. The original filing set the bar at 2 million euros in net unproductive wealth.
A separate sub-amendment discussed on the floor would preserve the earlier 1.3 million euro trigger. The Assembly cleared the framework, but the exact threshold is still contested and may be finalized during the Senate phase. The 1 percent rate is written in black and white; the cut-off is where the political trade remains open.
Reasons Behind the Policy Shift
France is wrestling with budget arithmetic and coalition politics. Broader proposals to tax the ultra-rich were rejected, and a more surgical approach gained enough cross-party votes to advance.
The “unproductive wealth” angle was the compromise that drew support from unexpected corners while avoiding a full restoration of a sweeping wealth tax. The package can still be tweaked in the upper house and could face constitutional review after final passage.
Implications for Crypto Holders
If enacted as drafted, large French taxpayers would need to aggregate digital assets with other unproductive items when computing liability. That does not change capital-gains rules on trading, but it adds an annual wealth component at scale.
Entrepreneurs and high-net-worth holders have already raised concerns that a flat levy on volatile assets could force sales into weak markets. High-profile voices from the crypto sector have warned that the combination of illiquidity across asset buckets and token price swings may lead to cash-flow strain at tax time.
Market Watch Indicators to Track
A new wealth levy does not directly set token prices. However, it can influence behavior at the margin. Large holders may rebalance toward assets treated as “productive,” shift residence, or increase hedging.
Traders will watch on-chain flows from France-linked venues for signs of pre-emptive selling, monitor realized volatility into calendar year-end, and track any rise in exchange inflows near the declaration window. If the Senate narrows the base or confirms the lower threshold, that will shape how many households fall in.
The Legislative Path Forward
The Assembly vote is not the finish line. The Senate can adjust the definitions, the threshold, and carve-outs for rented real estate or professional assets.
Final language will determine whether the threshold sits at 1.3 million euros or 2 million euros and how exemptions apply. Investors with meaningful token exposure in France should prepare working inventories, fair-value methodologies, and documentation standards now, not after the fact.
Conclusion
France has taken a significant procedural step toward taxing unproductive wealth, and crypto sits inside the net. The 1 percent rate is clear in the text.
The threshold is the hinge that will decide how many households feel the effect. Markets will not move on statutes alone, but portfolio choices will. The Senate’s edits will set the final contours, and informed preparation now will beat a scramble later.
Frequently Asked Questions
Does this change tax capital gains on crypto trades in France?
No. The measure adds an annual wealth component on “unproductive” assets. Capital-gains rules are separate and remain in force unless amended elsewhere in the budget.
What is the current rate and threshold being discussed?
The amendment sets a 1 percent rate. The threshold is subject to final agreement, with 2 million euros in the original filing and a competing push to keep 1.3 million euros. The Senate phase will clarify the final number.
When could this start to apply?
Timing depends on the final budget calendar. The Assembly advanced the measure within the 2026 budget, and application would follow enactment and any implementing guidance.
Glossary
Unproductive wealth
A legal category in the amendment covering assets viewed as idle, including digital assets, luxury goods, and certain financial contracts, used to determine the base for the new levy.
Digital assets
In this context, cryptocurrencies and similar tokenized instruments that fall within the taxable base for the proposed wealth tax framework.
Threshold
The net value of unproductive wealth above which the levy applies. The debate centers on 1.3 million euros versus 2 million euros.
Flat rate
A single tax rate applied to the taxable portion of the base. The amendment specifies 1 percent for unproductive wealth.
Senate review
The next legislative step in France’s budget process where the upper house can amend or confirm provisions before final adoption.