The French Parliament blocked the tax on crypto-assets upon change of tax residency: details and consequences

The French National Assembly rejected a legislative initiative that would have included crypto-assets in the tax regime for citizens changing tax residency. Both measures under consideration as part of the 2027 budget draft failed to gain the support of parliamentarians.

The first proposal concerned extending the existing taxation mechanism to cryptocurrency assets upon a change of tax residency. The second option—an alternative amendment—envisaged a similar approach for portfolios valued at more than €800,000. Neither initiative secured the required number of votes.

Regulatory Context

France has been consistently building a regulatory framework for digital assets, but the issue of taxation upon expatriation remains one of the most sensitive. The existing regime for a change of tax residency is traditionally applied to financial assets, and attempts to extend it to cryptocurrencies meet resistance in parliament.

The rejection of the amendments means that, at the current stage, crypto investors planning a change of tax residency will retain the existing conditions without the additional tax burden that could have arisen had the measures been adopted. The €800,000 threshold in the alternative version indicates an attempt by lawmakers to focus on wealthy holders of digital assets.

Consideration of the initiatives as part of the 2027 budget underscores the strategic nature of the issue: French lawmakers are seeking a balance between the state's fiscal interests and maintaining the jurisdiction's investment appeal for the crypto sector.

Cryptalist Analysis: The rejection of both amendments demonstrates the French parliament's caution on the issue of extending taxation to crypto-assets upon a change of residency—lawmakers are clearly wary of capital flight and wealthy investors to jurisdictions with more lenient regimes. For the market, this is a signal of continuing uncertainty: the topic will likely return to the agenda in future budget cycles, and investors with large portfolios should factor in the risk of such initiatives being reintroduced.