Taxation for French Residents

Swapping 8LNDS to USDC triggers no tax in France — only cashing out to EUR does. See how the €305 threshold and Form 3916-bis shape your filing.

Residents of France pay a flat tax of 31.4% (PFU — Prélèvement Forfaitaire Unique) on crypto income under Article 150 VH bis CGI. An important feature is that capital gain generally arises upon a taxable disposal, while crypto-to-crypto swaps without a cash settlement are not taxed for that year. Passive income (lending, staking, rewards) is taxed as BNC on a progressive scale + social contributions. Declaration — Form 2086 + Form 2042 C + Form 3916-bis. As of January 1, 2026, PFU has increased from 30% to 31.4%. DAC8 applies.

Basic Parameters (2026)

Parameter	Value
PFU (Flat Tax) on crypto capital gain	31.4% (12.8% income tax + 18.6% social contributions, CSG)
Alternative	Opt-out to the progressive scale (box 2OP)
Taxable event	Crypto → fiat (or purchasing goods with crypto)
Not taxable	Crypto-to-crypto swaps (e.g., 8LNDS → USDC)
Income from lending/staking	BNC — progressive scale + social contributions
Cost basis method	Average / pondéré (weighted average)
Tax period	January 1 – December 31
Filing deadline	April – June of the following year
Main forms	2086 + 2042 C + 3916-bis
Tax-free threshold	€305 total disposals per year (but still must be declared)
Legal basis	Article 150 VH bis CGI

CRITICAL 2026 CHANGE — PFU Rose to 31.4%

As of January 1, 2026, the flat tax increased from 30% to 31.4%:

The income tax portion remained 12.8%
Social contributions rose from 17.2% to 18.6% (the CSG component increased from 9.2% to 10.6%)
This was introduced in the LFSS (Loi de Financement de la Sécurité Sociale) 2026
It applies to all revenus du capital (including crypto)

This is the most significant change to French fiscal policy on crypto in recent years.

A Unique French Feature — Crypto-to-Crypto Without Tax

Unlike Germany, Spain, Portugal — France does not tax crypto-to-crypto swaps:

Exchanging 8LNDS for USDC via Uniswap = NOT a taxable event
Converting ETH into USDC, USDC into a stablecoin — not taxed
Tax arises only when crypto is converted into fiat (EUR, USD)
Or when crypto is used to purchase goods/services

This is a significant simplification for active traders: you can trade between tokens many times without tax obligations until the moment of "exit into fiat."

⚠️ This differs from other EU countries. For 8lends investors this means: selling 8LNDS for USDC on Uniswap is not taxable. Only the subsequent conversion of USDC into EUR at a bank creates a tax event.

Three Types of Income on 8lends — Tax Treatment in France

Interest income in USDC (19–25% APR)

This is a complex matter for French fiscality. There are two main interpretations:

Interpretation A (more common): interest income from lending = BNC (non-commercial profits) under Article 92 CGI. Taxed on the progressive scale + social contributions.
Interpretation B: interest income = revenu de capital, PFU 31.4% applies.

Most experts lean toward Interpretation A (BNC) for DeFi lending. The specific interpretation is up to your expert-comptable.

⚠️ Only one thing is the clearest: at the moment of receiving USDC interest — it is income that must be declared.

Example (Interpretation A, BNC):

Investor received €2,000 of USDC interest for the year
BNC declaration on the progressive scale (e.g., 30% marginal tax rate) + 18.6% social
Total: ~48.6% × €2,000 = ~€972 in tax at a high rate

Alternative — the micro-BNC regime (if total recettes are up to €77,700/year): a 34% abattement means that only 66% of income is taxed. So for €2,000 BNC:

Taxable base = €2,000 × 66% = €1,320
At TMI 30%: tax = €1,320 × (30% + 18.6%) = ~€641

Receiving 8LNDS via Proof of Loan / referrals

At the moment of receipt = BNC income at market value in EUR.

Taxed on the progressive scale + social contributions
Cost basis of new 8LNDS = their market value at the moment of receipt
Subsequent sale (if into fiat) = PFU 31.4% capital gain

Example: received 40,000 8LNDS at a price of $0.001 = $40 ≈ €37 → BNC tax (e.g., 30% × €37) = €11.10 + social.

Capital gain upon conversion into fiat — PFU 31.4%

Applies only upon conversion into EUR or purchase of goods
Does not apply to the swap 8LNDS → USDC (this is crypto-to-crypto)
Applies to the conversion USDC → EUR at a bank

Example: a year after receiving 40,000 8LNDS at €37 — sold on Uniswap for USDC, then withdrew USDC into EUR through a bank for €111 → gain €74 → PFU 31.4% × €74 = €23.24.

Alternative to PFU — the Progressive Scale (box 2OP)

On the declaration you can tick checkbox 2OP so that instead of PFU 31.4% the progressive income tax scale + social contributions applies:

Income	Marginal income tax	+ Social (18.6%)	Total
Up to €11,294	0%	18.6%	18.6%
€11,295 – €28,797	11%	18.6%	29.6%
€28,798 – €82,341	30%	18.6%	48.6%
€82,342 – €177,106	41%	18.6%	59.6%
Above €177,107	45%	18.6%	63.6%

When the 2OP option is advantageous:

If TMI (Tranche Marginale d'Imposition) = 0% or 11% → the progressive scale is better (18.6–29.6%)
If TMI ≥ 30% → PFU 31.4% is better

⚠️ The choice of PFU vs progressive is for the whole year, for all revenus du capital, not only crypto. This is an important financial decision.

€305 Threshold

An important rule: if the total amount of disposals (sales into fiat) per year is less than €305 — the gain is not taxed:

Applies per household (foyer fiscal), not per person
It is the total of sales that counts, not the gain
Declaration is still required — this is simply an exemption from tax

⚠️ €305 is a very low threshold. Most active 8lends investors will exceed it with their very first conversion into EUR.

Form 3916-bis — a Critical Declaration for 8lends

Since 2020, residents of France are required to declare all crypto accounts held abroad via Form 3916-bis:

Each wallet on a foreign platform must be listed separately
Filing is mandatory even if there is no gain or no operations
Penalty €750 for each undeclared wallet
€1,500 if the account value exceeds €50,000
€125 for each omission/inaccuracy
Maximum €10,000 per declaration

Does Form 3916-bis apply to 8lends?

8lends is operated by Alpha Systems LLC (SVG) — a foreign company → yes, it must be declared
An account on 8lends = a crypto account abroad
A basic MetaMask wallet (non-custodial) usually does NOT require Form 3916-bis (it is your private wallet, not an "account at a platform")
But the 8lends account itself — definitely

Cost Basis in France — Weighted Average

France uses a unique weighted average portfolio method for calculating capital gain under Article 150 VH bis:

Formula: gain = sale price − (total acquisition cost × sale value / total portfolio value)

This is more complex than FIFO, but gives a fairer picture. The specific calculation is automated through Blockpit, Koinly, Divly, or specialized French expert-comptables.

Losses and Carryforward

Capital losses (from crypto-to-fiat disposal) can be offset against gains of the same year
Carryforward to future years = up to 10 years (standard for capital losses)
They are NOT offset against ordinary income (salary, BNC)
BNC losses have different carryforward rules

DAC8 from 2026

As of January 1, 2026, DAC8 applies in France:

DGFiP receives data on crypto operations automatically
Applies to platforms serving residents of France
First reports between January and September 2027
Evasion becomes practically impossible

Checklist for a Resident of France on 8lends

✅ Keep a complete history of operations (via Blockpit, Koinly, or basescan)
✅ File Form 3916-bis for each crypto account abroad (including 8lends)
✅ Declare USDC interest income as BNC in Form 2042 C PRO (or PFU, by choice with your expert-comptable)
✅ Declare receipt of 8LNDS as BNC at the moment of receipt
✅ Declare crypto-to-fiat capital gains in Form 2086 → total in Form 2042 C (line 3AN/3BN)
✅ Do NOT declare crypto-to-crypto swaps (not taxable)
✅ Decide PFU vs opt-out 2OP for the year
✅ Keep documents 3+ years (standard audit period), better 10+ years

Frequently Asked Questions

Is it true that in France crypto-to-crypto swaps are not taxed? Yes. Only conversion into fiat (EUR, USD) or purchasing goods with crypto = a taxable event. A swap of 8LNDS for USDC via Uniswap = not taxed. This is a unique feature of France.

What changed in 2026? PFU rose from 30% to 31.4% following the increase in social contributions from 17.2% to 18.6%, including an increase in the CSG component from 9.2% to 10.6%. This automatically applies to all crypto capital gains via PFU. The opt-out to the progressive scale + 18.6% social remains available.

Do I need to file Form 3916-bis for 8lends? Yes, mandatory. 8lends is operated by Alpha Systems LLC (Saint Vincent) — a foreign company. An account on 8lends = a crypto account abroad. Penalty: €750 for non-filing (€1,500 in certain cases where the account value exceeds €50,000).

And for a MetaMask wallet? Usually no — MetaMask is your personal non-custodial wallet, not an "account at a platform." But if you have doubts — better to check with an expert-comptable. When in doubt, better to declare.

How much tax will I pay on €1,000 of interest income from 8lends? It depends on the interpretation. BNC + progressive scale (the most common interpretation):

Low TMI (11%): 11% + 18.6% = 29.6% × €1,000 = €296
Mid TMI (30%): 30% + 18.6% = 48.6% × €1,000 = €486
High TMI (45%): 45% + 18.6% = 63.6% × €1,000 = €636 With micro-BNC abattement 34% (if recettes are up to €77,700): TMI 30% × 66% of income × (30% + 18.6%) ≈ €321. The specific amount is up to your expert-comptable. When is the opt-out to the progressive scale (2OP) more advantageous? When your TMI ≤ 11% → the progressive scale (18.6–29.6%) is more advantageous than PFU 31.4%. When TMI ≥ 30% → PFU 31.4% is more advantageous than the progressive scale (48.6%+). When is the opt-out to the progressive scale (2OP) more advantageous? When your TMI ≤ 11% → the progressive scale (18.6–29.6%) is more advantageous than PFU 31.4%. When TMI ≥ 30% → PFU 31.4% is more advantageous than the progressive scale (48.6%+).

What is micro-BNC and who is it suitable for? If total BNC recettes for the year do not exceed €77,700, you can apply the micro-BNC regime with a 34% abattement — only 66% of income is taxed. This substantially lowers the effective rate. For private 8lends investors this is often the most advantageous option for BNC income.

Does the €305 threshold apply to my 8lends operations? Only to crypto-to-fiat disposals. If during the year you converted less than €305 of crypto assets into EUR — the gain is not taxed, but it still must be declared. Active 8lends investors usually exceed this threshold quickly.

What if I don't want to withdraw into EUR — I keep everything in crypto? Then capital gain does not arise, because there is no "exit into fiat." But passive income (USDC interest, PoL 8LNDS) is still taxed at the moment of receipt as BNC. Declaration is required.

What about wealth tax (IFI)? IFI (Impôt sur la Fortune Immobilière) applies only to real estate, not to crypto. Crypto has not been part of the IFI base in France since 2018.

What if I lost access to my wallet? If funds are lost (e.g., you lost the seed phrase) — this is not considered a tax-deductible loss in France, because there is no disposal event in the sense of Article 150 VH bis.

Declaration filing deadline? It depends on the region and the filing format (online vs paper). Usually — between April and June of the following year. Online via impots.gouv.fr. Exact dates are on the DGFiP website each year.

Can I use Blockpit to prepare French forms? Yes, France is among the 10 fully supported countries of Blockpit. The service generates a pre-filled Form 2086 (with support for more than 20 transactions) and helps with other forms. This significantly simplifies the declaration.

And what if I am in Monaco or another French offshore? Monaco is not part of France for tax purposes — it has its own rules. If you are a tax resident of Monaco — France's tax rules do not apply. If you are a resident of France (mainland) — even income from foreign platforms is taxed under French rules.

⚠️ This article is a general guide to approaches, not individual tax advice. French crypto taxation is complex, especially for DeFi and lending income with multiple possible interpretations. For decisions about your situation, consult a qualified French expert-comptable specializing in crypto.