France Delays 2027 Budget Vote, Rejects Crypto Exit Taxes

France’s National Assembly will continue debating the 2027 state budget’s revenue section on Tuesday instead of holding the planned vote. The agenda includes questions to the government and debate on 758 amendments that remain under review.

The vote was first scheduled for Oct. 20 but was postponed after more than 2,000 amendments remained to be debated. The Assembly has until midnight on Nov. 17 to complete its first-reading review of the revenue section.

If lawmakers reject the section, the government’s original budget proposal will go to the Senate without amendments adopted by the Assembly.

On Friday, lawmakers rejected two proposals that would have taxed unrealized crypto gains when taxpayers moved their tax residence abroad. The first proposal, which received 27 votes in favor, 55 against and one abstention, would have added crypto assets to France’s existing exit-tax rules.

The second proposal was rejected by 31 votes to 60. It would have taxed unrealized gains on household crypto holdings worth more than 800,000 euros ($897,000) when owners moved their tax residence outside France. The rule would have applied to people who had been tax residents in France for at least six of the previous 10 years.

Other crypto-related proposals remain under debate. One would require taxpayers to report self-custodied crypto holdings worth at least 100,000 euros ($112,000) in total at year-end to tax authorities.

Another would exempt gains from crypto payments for goods and services when the total value of those payments does not exceed 1,000 euros ($1,120) during the tax year.

On Oct. 16, lawmakers approved France’s stablecoin tax proposal, which would tax gains when crypto assets are converted into fiat-pegged stablecoins. The measure has not become law.