The post France Targets Bitcoin and Crypto with New “Unproductive Wealth” Tax appeared com. French lawmakers have approved a controversial plan to tax cryptocurrency holdings as “unproductive wealth,” grouping digital assets alongside luxury items like yachts and expensive art. The measure passed by a narrow margin and could force wealthy crypto holders to pay annual taxes on their investments-even if they haven’t sold anything. The Vote That Shocked the Crypto Community On October 31, 2025, France’s National Assembly voted 163-150 to advance an amendment that would reshape how the country taxes cryptocurrency. Centrist Member of Parliament Jean-Paul Matteï filed the proposal on October 22, gaining unexpected support from socialists and far-right politicians. The amendment isn’t law yet. It still needs approval from France’s Senate as part of the 2026 budget negotiations. But industry experts say chances are strong that it will pass, potentially taking effect on January 1, 2026. How the Tax Would Work Under the proposed system, French residents with more than €2 million ($2. 3 million) in “unproductive assets” would pay a flat 1% tax annually. The government considers cryptocurrency unproductive because, unlike businesses or productive investments, it doesn’t directly create jobs or contribute to economic activity. The tax applies to the total value of these assets, including any unrealized gains-profits that exist on paper but haven’t been cashed out yet. This means someone holding Bitcoin worth €3 million would owe €10, 000 in taxes each year (1% of €1 million over the threshold), regardless of whether they sold any crypto. Besides digital currencies, the tax targets luxury goods like classic cars, gold, artwork, private planes, and vacation properties. The French government argues these items don’t help grow the economy the way productive investments do. Currently, France’s real estate wealth tax uses a progressive system, starting at €800, 000 with rates climbing to 1. 5% for assets over €10 million. The new proposal simplifies this to.
