French Parliament Rejects Two Exit Tax Bills on Unrealized Digital-Asset Gains

France’s parliament has rejected proposals to impose a so-called exit tax on unrealized gains for digital-asset investors who move abroad.

Cointelegraph reported on November 30 that France’s National Assembly, the lower house of parliament, rejected on October 30 both bills that would have applied an exit tax to digital assets.

The first bill would have added digital assets to the holdings already covered by the existing exit tax. It was voted down 55-27, with one abstention.

The second bill would have taxed unrealized gains if an investor who had been a French tax resident for at least six of the previous 10 years moved overseas and the household’s digital-asset holdings exceeded 800,000 euros. That measure was also rejected, by a 60-31 vote.

Debate over broader changes to France’s digital-asset tax regime is set to continue, excluding the exit tax proposals. Lawmakers are discussing mandatory reporting for assets of more than 100,000 euros held in personal wallets, as well as an exemption from capital-gains tax on digital-asset payments of 1,000 euros or less a year.