How to Report NFT Profit in France: A Complete Tax Guide for 2024

Understanding NFT Taxation in France

Non-Fungible Tokens (NFTs) have exploded in popularity, but many French investors remain confused about tax obligations. In France, NFT profits are treated as capital gains under the broader category of biens meubles (movable property). Whether you’re an occasional trader or professional investor, reporting NFT gains is mandatory to avoid penalties from the French Tax Authority (Direction Générale des Finances Publiques). This guide breaks down the entire process.

How NFT Profits Are Taxed in France

France taxes NFT gains based on your activity level and profit thresholds:

• Occasional Sellers: Pay a flat 30% tax (12.8% income tax + 17.2% social charges) if annual crypto/NFT gains exceed €305.
• Professional Traders: Profits taxed as commercial income under BIC regime (up to 45% + social charges).
• Artists & Creators: Primary NFT sales may qualify for artist tax schemes like droit de suite.

Note: Losses can offset gains within the same fiscal year but cannot be carried forward.

Step-by-Step Guide to Reporting NFT Profits

1. Calculate Your Net Gain

Use this formula: Selling Price – (Acquisition Cost + Associated Fees). Track all transaction fees (gas, platform commissions) as deductible expenses.

2. Complete Tax Form 2086

Attach this supplementary form to your annual income tax return. You’ll need:

1. Dates of acquisition and sale
2. Transaction IDs and wallet addresses
3. Euro-equivalent values at transaction time (use Banque de France rates)

3. Declare on impots.gouv.fr

Navigate to Révenus > Plus-values section. Select “Vente de biens meubles” and enter your net gain.

Deadlines for Reporting NFT Gains

• Paper returns: May 22, 2024
• Online returns (Zones 1-3): June 6-11, 2024
• Late penalties: 10% fine + 0.20% interest monthly

Tip: Use crypto tax software like Koinly or Accointing for automated gain calculations.

Common Reporting Mistakes to Avoid

• Ignoring small transactions: All sales count toward the €305 threshold
• Forgetting airdrops/staking: These count as taxable income at market value
• Miscalculating acquisition cost: Use FIFO (First-In-First-Out) method consistently
• Omitting foreign platforms: French residents must declare worldwide NFT income

NFT Tax Reporting FAQ

Are NFT losses deductible?

Yes, but only against crypto/NFT gains in the same tax year. Unused losses expire annually.

Do I pay tax if I transfer NFTs between my wallets?

No – transfers between personal wallets aren’t taxable events. Only fiat conversions or trades trigger taxation.

How are NFT donations taxed?

Donations exceeding €100,000 may incur gift tax (up to 45%). Always declare transfers to family members.

What if I bought NFTs before 2023?

France introduced specific crypto reporting in 2019. You must declare all gains since your first NFT acquisition.

Can the tax authority track my NFT activity?

Yes. Since 2023, French platforms must report user transactions under DAC8 regulations. Non-compliance risks audits.

Key Takeaways

Reporting NFT profits in France requires meticulous record-keeping and understanding of the 30% flat tax rule. Always:

1. Track every transaction in EUR equivalents
2. File Form 2086 by June deadlines
3. Consult a conseiller fiscal for complex cases

With proper reporting, you avoid penalties up to 80% of owed tax. Stay compliant and invest confidently!