France advances plan to tax unproductive wealth including crypto

France's National Assembly voted on Oct. 31 to advance an amendment that would widen the country's wealth tax to cover a range of so‑called unproductive assets, explicitly including cryptocurrencies, luxury goods and certain movable property. The measure, introduced by centrist deputy Jean‑Paul Mattei, passed narrowly by 163 votes to 150 during debates on the 2026 draft budget and must still clear the Senate and final budget negotiations before becoming law.

Under the proposed change, the existing real‑estate‑only Impôt sur la Fortune Immobilière would be replaced by a broader tax on "unproductive wealth." The taxable base would be expanded to encompass assets long excluded from the IFI such as yachts, private jets, jewelry, collectible cars, works of art, and digital assets including Bitcoin and other cryptocurrencies. The amendment raises the exemption threshold from about €1.3 million to €2 million and substitutes the current progressive schedule with a flat 1 percent levy on net assets above that threshold.

Proponents argue the reform corrects an inconsistency in the current system by subjecting nonproductive stores of value to the same treatment as real estate and thereby...