Understanding Airdrop Taxes in France: The Essentials
Cryptocurrency airdrops – free token distributions to wallet holders – feel like unexpected windfalls. But in France, the tax authorities consider them taxable events. Whether you’re a crypto enthusiast or a casual holder, failing to declare airdrop income can lead to penalties. France treats cryptocurrencies as movable property, meaning airdrops fall under specific tax rules distinct from traditional income. This guide breaks down how to legally report and pay taxes on airdrop income in France, helping you avoid costly mistakes while staying compliant with the Direction Générale des Finances Publiques (DGFiP).
How France Taxes Cryptocurrency Airdrops
French tax law categorizes airdrops based on context and recipient activity:
- Non-Professional Holders: Airdrops are taxed as revenus de capitaux mobiliers (movable capital income) at a flat 30% rate (12.8% income tax + 17.2% social charges).
- Professional Traders/Developers: Airdrops may qualify as bénéfices industriels et commerciaux (BIC) business income, taxed at progressive rates up to 45% plus social charges.
- Conditions Matter: Taxation applies only if tokens have market value upon receipt. “Forked” coins follow similar rules.
Note: The 30% flat tax (prélèvement forfaitaire unique) applies if you held the original crypto for ≥2 years. Shorter holdings may incur higher rates.
Classifying Your Airdrop: Income vs. Capital Gains
Correct classification determines your tax rate:
- Income Event: Triggered when tokens are received. Market value at receipt becomes taxable income.
- Capital Gains: Apply later when selling/exchanging tokens. Calculated as: (Sell Price – Declared Income Value) – Fees.
- Example: Receiving €500 worth of XYZ tokens in an airdrop incurs €150 tax (30%). Selling them later for €700 generates €200 capital gains, taxed at 30% (€60).
Tip: Always document token values using exchange rates from receipt and sale dates.
Step-by-Step Guide to Reporting Airdrop Income
- Track Receipt Dates & Values: Record dates and EUR values of all airdropped tokens using historical price data.
- Complete Form 2086: Report total airdrop income under “Revenus de capitaux mobiliers” in Section 2.
- File Capital Gains Separately: Use Form 2086 for gains/losses upon token disposal.
- Calculate Social Charges: Include CSG/CRDS contributions (17.2%) in your declaration.
- Submit by Deadline: Declare by May-June annually via impots.gouv.fr.
Warning: French residents must declare global crypto income, including tokens received via foreign platforms.
Common Mistakes to Avoid With Airdrop Taxes
- Ignoring Small Airdrops: All tokens with market value must be declared, regardless of amount.
- Misvaluing Tokens: Using incorrect exchange rates leads to under/overpayment.
- Mixing Personal & Professional: Developers receiving project tokens may trigger BIC taxation.
- Forgetting Social Charges: The 17.2% levy applies even if income tax is minimal.
- Late Reporting: Penalties start at 10% of owed tax + 0.2% monthly interest.
FAQs: Paying Taxes on Airdrop Income in France
Q: Are “worthless” airdropped tokens taxable?
A: No. Only tokens with verifiable market value at receipt are taxable. Save evidence of zero-value claims.
Q: Do I pay tax if I never sell the airdropped tokens?
A: Yes. Tax applies upon receipt based on market value, regardless of whether you hold or sell later.
Q: How do I prove historical token values to the DGFiP?
A: Use screenshots from CoinGecko, CoinMarketCap, or exchange data showing EUR prices at exact receipt time.
Q: Are NFT airdrops taxed differently?
A: No. The same movable property rules apply. Value at receipt is taxable income.
Q: Can losses from airdropped tokens be deducted?
A: Only if sold below declared value. Capital losses offset gains from similar assets for 10 years.
Q: What if I received tokens before 2023?
A: France’s crypto tax framework applies retroactively. Declare past unreported airdrops immediately via amended returns.
Always consult a French tax advisor for complex cases. Tax rules evolve, and penalties for non-compliance can reach 80% of owed amounts.
