France wants a 31.4% tax on stablecoins
In short
- French lawmakers want certain swaps into regulated stablecoins to become taxable sales from 2027.
- The proposed rate is 31.4 percent, but the measure is not law yet.
- In the Netherlands, changes in crypto values can also count when calculating actual returns under Box 3.
- The timing of taxation can determine whether investors have enough cash to pay their tax bill.
A French investor who swaps bitcoin for a regulated stablecoin could face tax on the gain from January 1, 2027. The proposed rate is 31.4 percent. But there is an important detail: as of October 14, 2026, the proposal is not law. Even so, the debate raises a fundamental question for crypto investors. Can you owe tax when you have not transferred your money to a bank account?
France wants to tax certain crypto swaps
A stablecoin is a cryptocurrency designed to track a stable value, such as the US dollar. Investors use stablecoins to move temporarily out of bitcoin or other volatile cryptocurrencies without immediately transferring euros to a bank account.
Under current French rules, a straightforward swap from one cryptocurrency to another generally does not immediately trigger capital gains tax. Tax can arise when someone sells crypto for ordinary money or uses it to pay for goods and services.
French lawmakers want to change that treatment for certain stablecoins covered by the European Union's MiCA rules. Their proposal would treat a conversion from bitcoin into a regulated stablecoin as a taxable sale from 2027.
The 31.4 percent rate consists of 12.8 percent income tax and 18.6 percent social charges. This rate applies in France from 2026 to the relevant private investment gains. The proposal would therefore change not simply the rate, but the point at which an investor may owe tax.
The proposal is not law yet
On October 7, 2026, France's National Assembly finance committee supported the proposal. On October 9, the same committee rejected the revenue section of the budget by 31 votes to 3.
That decision removed the adopted changes from the text moving forward to the full Assembly. Supporters must submit the proposals again before lawmakers can consider them further.
The committee vote was therefore not a final enactment. The full parliament still had to debate the budget, and the remaining legislative process still mattered.
This distinction is important for investors. A proposal can gain political support and still fail. Anyone claiming that every French investor will automatically pay 31.4 percent on every stablecoin swap from January 2027 is getting ahead of the legislation.
A 10,000 euro gain could mean 3,140 euros in tax
Suppose you buy bitcoin for 40,000 euros. Its value rises to 50,000 euros, and you then exchange the bitcoin for a regulated stablecoin.
You have a gain of 10,000 euros. If the proposed 31.4 percent rate applied to that gain, the tax would be 3,140 euros. You would retain 6,860 euros of the gain after tax.
This is a mathematical example. It is not a final tax assessment or confirmation that the proposal will become law in this form.
The problem is timing. After the swap, you still hold a crypto asset. You have not necessarily transferred euros to your bank account. Yet under the proposal, you could owe tax on the conversion.
If the stablecoin later loses value or you make another loss, the situation could become more difficult. The tax obligation might arise at the time of the swap, while the value of your remaining assets changes afterwards.
Tax on paper gains can force investors to sell
The main objection to taxing unrealised gains is that a taxpayer may not have the cash needed to pay the bill.
When an investor sells for euros, the proceeds can be used to pay tax. When bitcoin is converted into a stablecoin, the money remains inside the crypto system.
This could force an investor to sell part of the remaining holdings to meet a tax obligation. A rule intended to collect revenue can therefore influence trading behaviour.
Supporters may argue that converting bitcoin into a stable asset is economically similar to securing a gain. Critics point out that the investor has not necessarily withdrawn money and may intend to remain within the crypto market.
The debate is not just about the tax rate. It is also about the point at which the government treats a transaction as a taxable event.
The Netherlands taxes crypto through Box 3
In the Netherlands, crypto held by private investors generally falls under Box 3. In 2026, the Dutch Tax Administration uses a deemed return of 6 percent for investments and other assets, including crypto. The tax rate is 36 percent.
That does not mean every investor automatically pays 36 percent of their crypto profit. The calculation follows the Box 3 rules, including the relevant asset position, exemptions and the option to report actual returns.
From the 2025 tax return onwards, taxpayers can report their actual return. This includes changes in the value of crypto. If the actual return is lower than the deemed return, the more favourable calculation can be used.
The Dutch government is working towards a new system expected to start on January 1, 2028. The House of Representatives passed the bill in February 2026, but further legislative steps matter for the final rules.
The Dutch debate raises a similar question: taxation can take account of changes in asset values even when an investor has not withdrawn the gain.
Belgium has a different tax system
Belgium does not use the same Box 3 system as the Netherlands. The tax treatment of crypto gains depends in part on the nature of the transaction and the circumstances in which the investor operates.
A private investor managing personal wealth in a normal way may receive different treatment from someone who speculates or trades professionally. How the activity is classified is therefore important.
The French proposals do not mean that Belgium will automatically adopt the same rules. Nor can the French 31.4 percent rate simply be applied to a Belgian taxpayer.
Belgian investors should keep clear records of transactions, purchase prices, sale prices and the reasons for their activities. The tax treatment depends on the applicable Belgian rules and the individual circumstances.
Questions to ask
- Has France ultimately adopted the tax on stablecoin swaps?
- At what point does a taxable gain arise under the applicable rules?
- Do I have enough liquid funds to pay tax without being forced to sell investments?
- How are my crypto assets taxed in my country of residence in 2026 and 2027?
- Do I keep enough records to support my purchase prices, sales and changes in value?
This article is for educational purposes only and does not constitute financial advice.
