Lawmakers in France have voted to advance an amendment to the country’s tax laws that would impose levies on “unproductive wealth,” including some types of property and crypto holdings.
Centrist MP Jean-Paul Matteï filed the amendment on Oct. 22, with members of the National Assembly, the country’s lower house, passing the amendment with a vote of 163-150 late on Friday, with the backing of socialist and far-right MPs.
The measure will still have to survive the remainder of the parliamentary process as lawmakers look to pass a budget for 2026 and will have to pass through the Senate before it becomes law.
Matteï’s summary of the amendment said that the current real estate wealth tax law was “economically inconsistent” as it “excludes unproductive goods from its plate,” such as “gold, coins, classic cars, yachts, works of art.”
He claimed that the new tax would “encourage productive investment,” as the current system did not account for assets that could “contribute to the dynamism of the French economy.”
Crypto wrapped up in “unproductive” assets
The summary notes that “unproductive goods” would no longer be exempt under the law, and taxable assets have been expanded to include “non-productive” real estate, property such as “precious objects” and planes, and as well as “digital assets.”
Only those with “unproductive wealth” exceeding 2 million euros ($2.3 million) will be taxed, rising from the threshold of 1.3 million ($1.5 million) under current laws.
The tax rate is also changed, charging a flat rate of 1% on the taxable assets over the 2 million euro threshold.
The current real estate wealth tax is progressive, ranging from no tax on assets below 800,000 euros ($922,660) and jumping to 1.5% for assets above 10 million euros ($11.5 million).
The amendment to include digital assets has seemingly disappointed local crypto enthusiasts.
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Éric Larchevêque, the co-founder of crypto wallet maker Ledger, said on Saturday that the amendment “punishes all savers who wish to financially anchor themselves to gold and Bitcoin in order to protect their future.”
Source: Éric Larchevêque“The political message is clear: ‘Crypto is equated with an unproductive reserve, not useful to the real economy,’” he added. “This is a major ideological error, but revealing of a fiscal shift: punishing the holding of value outside the fiat monetary system.”
Larchevêque stated that French crypto holders may be compelled to sell their assets to pay the tax if they have no other liquid assets, and expressed concern that the 2 million euros threshold could be subsequently lowered.
“There is certainly still a legislative process for this to be included in the 2026 PLF [budget], but the probability of it coming into effect on January 1 remains strong,” he said.
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Source: https://cointelegraph.com/news/french-mps-ok-measure-tax-crypto-holdings-unproductive-wealth?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
