Crypto Investors Face Potential 1% Annual Tax Under New Wealth Tax Proposal in France

France’s National Assembly has approved an amendment to replace the real-estate wealth tax (IFI) with a broader levy on “unproductive wealth.” On October 31, 2025, the centrist MP Jean-Paul Mattei proposed an amendment, which was approved, receiving 163 votes in favor and 150 in opposition. 

Whilst the measure is one step closer to becoming law, it now needs to be passed through the Senate as part of the 2026 budget process. If it passes, this change can have a significant impact on cryptocurrency investors in the country.

The amendment sets a flat rate of 1% on the portion of net assets exceeding €2 million. It changes the existing progressive IFI scale and raises the threshold from €1.3 million. Official Assembly documents refer to the measure as a revision of Article 977 of the tax code.

How the proposal treats crypto and other assets

The new base broadens the tax to include assets deemed “non-productive,” including digital assets such as cryptocurrencies. The scope also lists items like gold, art, yachts, planes, and specific non-rented property, while excluding “productive” real estate that meets rental duration and environmental criteria.

Under the plan, crypto holdings would be included in the taxable base for households with assets exceeding the €2 million threshold. The 1% levy would be levied on a yearly basis on the part above that level. Assembly summaries highlight the policy's goal of channeling capital towards productive activity and away from passive stores of value.

Next Steps in Senate and Potential Impact on Investors

The measure remains at an interim stage and still requires Senate passage and reconciliation in the final 2026 budget. Government allies have questioned revenue estimates and implementation details, signaling that negotiations could change the scope or design. Recent reporting highlights uncertainty over fiscal yield and the distributional effects across wealth bands.

Industry players have expressed fears regarding the inclusion of digital assets in the base. Others caution that wealthy crypto holders may have difficulties liquidating their holdings to cover an annual wealth levy. Coverage in national media notes that the coalition behind the vote was unusual and that broader wealth-tax initiatives failed to gain consensus on the same day.

Also Read: UK Tax Authority Expands Crypto Oversight Amid Rising Investor Activity