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The French National Assembly has decided to remove the proposed "unproductive wealth" tax on unrealized cryptocurrency gains from the 2025 budget. This decision, announced in the finalized budget text on January 31, means that holders will not be taxed on value increases unless they sell their assets.
The proposed tax aimed to impose an annual levy on unrealized cryptocurrency gains, taxing holders even if they had not sold their assets. Previously, France applied a 30% flat rate tax on crypto gains only upon sale or conversion to fiat currency, excluding trades between cryptocurrencies. Crypto investors also faced strict reporting requirements, including multiple tax forms and mandatory foreign account declarations, with penalties for non-compliance.
France's debt-to-GDP ratio is projected to reach nearly 115% in 2025. Borrowing costs have surged as the yield spread between French and German 10-year government bonds reached 90 basis points—the highest level in 12 years. According to Reuters, this rise reflects growing investor concerns over France's fiscal policies as the country struggles to manage public spending and deficits.
