French Lawmakers Move Forward With Tax Targeting Idle Capitals
France is expanding taxes on “unproductive wealth,” which includes digital currencies and luxury items, as well as some real estate, following a vote endorsing changes to a law on wealth tax (Impôt sur la fortune).
Centrist MP Jean-Paul Matteï filed the amendment on October 22. Subsequently, the National Assembly of France voted on the matter and passed it by 163 votes to 150. The measure also won backing from several socialist and far-right lawmakers.
The Senate of France will examine the amendment further after passage by the lower house. It will then continue through the rest of the 2026 budget process.
What Counts as “Unproductive Wealth”?
The changes envisaged would bring gold, collectibles, yachts, vintage cars, art, and cryptocurrencies into the tax net — assets previously considered off-limits. Only those with more than €2 million ($2.3 million) in assets will be affected, up from the previous threshold of €1.3 million ($1.5 million).
Any asset in excess of €2 million will be taxed at a flat rate of 1%, contrasting with the existing progressive real estate wealth tax (Impôt sur la fortune immobilière) in France, which starts from zero for holdings under €800,000 ($922,660) and rises to 1.5% for assets valued over €10 million ($11.5 million).
Matteï states that the transfer will lead to productive investment by placing untaxed wealth into the fiscal system.
Crypto Holders Express Alarm
France’s crypto community is concerned about the amendment. The co-founder of Ledger, Éric Larchevêque, said that this law will unjustly punish investors holding Bitcoin or gold as a store of value.
Larchevêque explained the political interpretation: crypto is likened to an “unproductive reserve” unhelpful for the real economy. He warned this is a serious ideological mistake and marks the beginning of a monetary transition — punishing wealth not held in fiat currency.
He added that holders may be obliged to liquidate crypto or other illiquid assets to meet tax obligations. He also expressed concern that lowering the tax threshold below €2 million will extend the tax to more people.
Also Read : EU Targets Russian Crypto Platforms in 19th Sanctions Package Amid War Efforts
Legislative Outlook
Although the amendment is moving with significant momentum, the 2026 budget must pass through the legislative process. Experts suggest that with the political backing it currently enjoys, the tax might take effect on January 1, 2026, signaling France’s intent to tax both wealth and digital assets.
