France Advances Tax Amendment Targeting Unproductive Wealth

According to Cointelegraph, French lawmakers have moved forward with an amendment to the nation's tax laws, aiming to impose levies on "unproductive wealth," which includes certain types of property and cryptocurrency holdings. The amendment, introduced by Centrist MP Jean-Paul Matteï on October 22, was passed by the National Assembly, France's lower house, with a vote of 163-150. The measure received support from both socialist and far-right MPs. However, it must still navigate the remainder of the parliamentary process, including approval by the Senate, as lawmakers work to finalize the budget for 2026. Matteï's summary of the amendment criticized the current real estate wealth tax law as "economically inconsistent" for excluding "unproductive goods" such as gold, coins, classic cars, yachts, and works of art. He argued that the new tax would promote "productive investment," as the existing system fails to consider assets that could "contribute to the dynamism of the French economy." Under the proposed changes, "unproductive goods" would no longer be exempt, and taxable assets would expand to include "non-productive" real estate, precious objects, planes, and digital assets. The tax would apply to individuals with "unproductive wealth" exceeding 2 million euros ($2.3 million), up from the current threshold of 1.3 million euros ($1.5 million). A flat tax rate of 1% would be levied on assets above the 2 million euro threshold, replacing the current progressive tax system. The inclusion of digital assets in the amendment has disappointed local cryptocurrency enthusiasts. Éric Larchevêque, co-founder of crypto wallet maker Ledger, expressed concern that the amendment "punishes all savers who wish to financially anchor themselves to gold and Bitcoin to protect their future." He criticized the political message equating crypto with an "unproductive reserve, not useful to the real economy," describing it as a significant ideological error and indicative of a fiscal shift towards penalizing value held outside the fiat monetary system. Larchevêque warned that French crypto holders might be forced to sell their assets to pay the tax if they lack other liquid assets and expressed concern that the 2 million euro threshold could be lowered in the future. Despite the legislative process still underway, he noted the strong likelihood of the amendment taking effect on January 1, 2026.