French Mps Advance Measure To Tax Crypto As ‘unproductive Wealth’

Lawmakers in France’s National Assembly have passed an amendment that would consider larger crypto holdings “unproductive wealth” and subject them to taxation.

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.”

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).

Source: CoinTelegraph