Understanding NFT Taxation in France
Updated on 13 July 2026
The taxation of NFTs (non-fungible tokens) in France depends on the nature of each token: depending on whether it is classified as a digital asset, a work of art, a financial security or an intangible movable asset, the applicable tax regime varies, since French law has no tax category of its own for them.
- An NFT's tax treatment depends on its nature: digital asset, work of art, financial security or intangible movable asset, each with its own regime.
- An NFT classified as a digital asset follows the digital-asset capital-gains regime (PVAN): the flat tax (PFU) of 31.4% since 1 January 2026.
- Exchanging digital assets for one another (including buying an NFT with crypto) benefits from a tax deferral: only conversion into legal tender triggers taxation.
- An NFT certifying a physical work of art may fall under the flat-rate 6.5% tax on the sale price, unchanged since the 2026 reform.
Why are NFTs difficult to classify legally and for tax purposes?
These NFTs (non-fungible tokens) rely on blockchain technology and appear across many sectors (video games, art, music, real estate). Technically, they are crypto-assets just like bitcoin or ether, except that they are not interchangeable: each NFT is unique, hence non-fungible.
Legally, the NFT is not simple to grasp, and the multiplicity of uses (e.g., a certificate of authenticity for physical goods, elements within an online video game, an event ticket, etc.) makes it difficult, if not impossible, to settle on a single legal classification.
For tax purposes, their treatment remains an open question, mainly because of the lack of a clear legal classification. Neither the legislature, nor the tax authorities, nor the tax courts have yet ruled on their tax regime.
Faced with these legal and tax UFOs, taxpayers confront multiple uncertainties: how should gains be declared? Are losses carried forward? Could the value of NFTs held in a digital wallet affect the calculation of capital gains on digital assets? And so on.
For income tax purposes, four categories of assets can be distinguished, each falling under a different tax regime:
- digital assets (article 150 VH bis of the CGI, France's General Tax Code),
- precious metals, jewellery and objects of art, collection or antiques (article 150 VI of the CGI),
- securities and corporate rights (article 150-0 A of the CGI), and
- other movable assets (article 150 UA of the CGI). The tax regime for "other movable assets" is, in effect, the catch-all category: every movable asset falls under it unless it is treated as a work of art, a security or a digital asset.
For NFT transactions, the question is which of these categories the NFT falls into, knowing that the taxpayer necessarily takes on a tax risk by opting for one regime over another.
How do you determine which tax regime applies to an NFT?
While some argue for a stand-alone tax treatment of NFTs within one of the categories above, tax realism requires looking, for each NFT, at the nature of that asset - which means analysing in particular the underlying rights the NFT represents.
Just as a work of art is taxed under a category distinct from financial securities, there is no reason to tax under a single regime NFTs that represent opposing rights arising from different regimes.
Indeed, under the principle of technological neutrality, the tax regime must necessarily rest not on the form of its medium, but on the nature of the object. Yet in many cases, the value of NFTs is tied to objects (tangible or intangible), not merely to the asset's registration on the blockchain. As an illustration, a painting by Claude Monet would not be worth any more for the sole reason of being authenticated on the blockchain.
So, once the underlying of an NFT is linked to an existing asset category (digital asset, work of art, financial right, etc.), the regime attached to that category should logically apply.
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Is an NFT a digital asset like any other?
An NFT can be classified as a digital asset when it represents one or more rights transferable via the blockchain, excluding purely artistic NFTs that confer no rights.
When the French PACTE law was passed in 2019, the legislature had not anticipated the rise of new types of digital assets such as NFTs, and simply defined (i) virtual currencies (BTC, ETH, etc.) and (ii) utility tokens, these two categories forming the broader "digital assets" category.
While NFTs cannot be equated with virtual currencies, in particular because they lack fungibility, it is tempting to classify them as tokens (if only because they share the same term).
Tokens are defined as "any intangible asset representing, in digital form, one or more rights that can be issued, recorded, held or transferred by means of a shared electronic recording device [blockchain] making it possible to identify, directly or indirectly, the owner of that asset" (CMF, France's Monetary and Financial Code, art. L. 552-2).
Utility NFTs (utility tokens), for example NFTs granting a right to a service, should logically fall under this classification; the difficulty then lies in determining whether the collector is buying a service or a digital asset, and how to draw that distinction.
NFTs associated with no rights, as is the case with purely artistic NFTs, should simply be excluded from the digital-asset category, insofar as these tokens do not meet the condition of "representing, in digital form, one or more rights".
Where the digital-asset classification is adopted, NFT disposals follow the digital-asset capital-gains regime (PVAN) set out in article 150 VH bis of the CGI.
Tax regime for capital gains on digital assets
- According to the tax authorities (impots.gouv.fr), once disposals exceed an annual amount of €305, the capital gains realised are subject to income tax at the flat tax (PFU) rate of 31.4% (comprising 12.8% income tax and 18.6% social contributions), with the option to elect for taxation under the progressive income tax scale from 1 January 2023.
Advantage of the regime
- The main advantage of applying this regime concerns how the taxable event is determined. Buying and disposing of an NFT triggers no taxation. Indeed, exchanges between digital assets are not taxable; the taxable event only arises on conversion into "fiat" (for legal tender, a good or a service);
Disadvantage of the regime
- Applying this regime to NFTs is not without difficulty and requires applying the regime's specific calculation rules. For each taxable event, the taxpayer must determine the overall value of the digital-asset portfolio, including any NFTs qualifying as digital assets (which can be particularly difficult given the non-fungible nature of NFTs).
Is an NFT a work of art?
An NFT can be classified as a work of art only if it authenticates a physical creation made by the artist's own hand; most purely digital NFTs that can be duplicated endlessly are excluded from this regime.
For income tax purposes, the notion of a work of art is not precisely defined.
On this point, the tax authorities have clarified that this notion includes in particular "paintings entirely made by the artist's own hand ", " original engravings, prints and lithographs" but also "audiovisual works of art on analogue or digital media ". The latter must come from a print run controlled by the artist or their successors in title, limited to 12 copies, be signed and numbered by the artist or, failing that, accompanied by a certificate of authenticity signed by the artist (BOI-RPPM-PVMC-20-10 no. 40).
The tax authorities have thus adopted a restrictive view of the notion of a work of art, which should exclude most NFTs from the regime specific to this type of asset, either because NFTs are not made "by the artist's hand" (but digitally) or because they are generated in large numbers of copies. The fact that digital images can be duplicated endlessly does indeed seem irreconcilable with the definition of a work of art.
However, as noted, in some cases the NFT merely certifies the authenticity of a physical work of art (or even a collector's item). In that case, nothing should prevent the sale of the NFT (in reality, of the work of art) from falling under the regime specific to sales of works of art.
Tax regime for works of art
- A collector could subject the sale of their NFT, if it exceeds €5,000, to a flat-rate tax of 6.5% of the sale price (6% income tax + 0.5% CRDS, France's social-debt repayment contribution).
Advantage:
- A flat-rate tax of 6.5% applied only to sales worth more than €5,000. Note that this rate applies to the sale price, not to the capital gain realised.
Disadvantage:
- If the NFT is bought with crypto-assets, the taxpayer will have to declare the capital gain realised on the disposal of the "cryptocurrencies" exchanged for the NFT's acquisition.
Is an NFT a financial security?
When an NFT is associated with financial rights, classifying the token as a financial security (security token) is possible.
The AMF (Autorité des marchés financiers, France's financial markets regulator) takes an expansive approach to the notion of a security token, which can apply where there are political rights (governance rights) and/or financial rights similar to those usually attached to a financial security (e.g., a share or a bond).
So, an NFT whose associated rights provide, for example, for a share of operating profits, is likely to resemble a financial security.
Tax regime for financial securities
- Capital gains realised on the disposal for consideration of NFTs representing financial rights are subject to the flat tax (PFU) at a rate of 12.8%, to which 18.6% social contributions are added, for a total levy of 31.4%.
Advantage:
- The levy rate is similar to that of the digital-asset capital-gains regime, but this regime has the advantage of allowing capital losses to be carried forward to later years against transactions of the same nature.
Disadvantage:
- The tax deferral applicable to digital-asset exchange transactions does not apply here; buying and disposing of an NFT for other crypto-assets is therefore liable to trigger taxation.
Failing that, the NFT: a standard intangible movable asset
Failing classification within an existing category, NFTs should in principle be generically classified as intangible movable assets within the meaning of civil law (the catch-all category).
This classification had already been adopted by case law (CE, 25 April 2018, no. 417809 and 418033) regarding bitcoin sales, before the legislature came to define digital assets and apply their own tax regime to them.
Tax regime for intangible movable assets
The regime for disposals of movable assets set out in article 150 UA of the CGI provides for taxation of the capital gain realised at an overall rate of 37.6% (19% income tax + 18.6% social contributions), with the benefit of a 5% allowance per year of holding (beyond the 2nd year, meaning full exemption after 22 years).
All disposals for an amount below €5,000 are exempt.
Advantage:
- An exemption for sales below €5,000. The rate nonetheless remains higher than under the other regimes.
Disadvantage:
- If the NFT is bought with crypto-assets, the taxpayer will have to declare the capital gain realised on the disposal of the "cryptocurrencies" exchanged for the NFT's acquisition.
Summary
| Tax regime | Tax on gains on the crypto-assets used to acquire the NFT | Tax on the gain when the NFT is disposed of |
|---|---|---|
| Digital assets | No | 0% if the disposal is for another digital asset, 31.4% of the gain if the disposal is for anything else |
| Works of art | Yes (31.4%) | 6.5% of the sale price |
| Financial securities | Yes (31.4%) | 31.4% of the gain |
| Intangible movable assets | Yes (31.4%) | 37.6% of the gain, allowance for holding period |
Risk of the activity being reclassified
Beyond the classification of the NFT itself, it is also important to remain alert to whether NFT activity retains the character of private management.
Indeed, if buying and reselling NFTs is carried out on a habitual basis, it must be taxed in the same way as professional profits, resulting in taxation under the progressive income tax scale (between 0% and 45%) and liability for social security contributions.
In the event of reclassification, the tax authorities could also apply penalties (of up to 80% in the case of undisclosed activity) on the additional tax assessed.
Conclusion
NFT taxation is a complex, constantly evolving field, reflecting the diversity and novelty of these digital assets.
In reality, each NFT presents a unique case, directly influencing how it is, at least in theory, taxed.
Caution is advised for NFT holders, since the tax classification chosen can have significant consequences in the event of a tax audit. It is essential to stay informed and to consult tax experts to navigate this constantly evolving legal and tax landscape.
Ultimately, while NFTs open up new possibilities across many sectors, they also raise numerous questions and challenges for individual taxation.
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Investing carries risks, including the risk of capital loss. Crypto-assets are highly volatile: you may lose all or part of your investment. Past performance is not a reliable indicator of future performance. Finary is authorised as a Crypto-Asset Service Provider (CASP, "PSCA" in French) under the MiCA regime by the AMF.
Frequently asked questions
How do you know whether an NFT is a digital asset, a work of art or a financial security?
Classification depends on the NFT's underlying: an NFT associated with a transferable right falls under digital assets, an NFT authenticating a physical work falls under the works-of-art regime, and an NFT granting financial rights falls under the financial-securities regime. Failing that, it falls under the residual regime for intangible movable assets.
What is the tax rate for an NFT classified as a digital asset?
Capital gains are taxed at the flat tax (PFU) rate of 31.4% since 1 January 2026 (12.8% income tax and 18.6% social contributions), with an annual allowance of €305 on total disposals.
Does buying an NFT with cryptocurrencies trigger taxation?
No, if the NFT is itself classified as a digital asset: the exchange between digital assets benefits from a tax deferral. However, if the NFT falls under another regime (work of art, financial security, movable asset), the gain realised on the cryptocurrencies used for the purchase is taxable.
What taxation applies to an NFT that authenticates a physical work of art?
This type of NFT may fall under the flat-rate taxation for works of art, i.e. 6.5% of the sale price above €5,000, a rate left unchanged by the 2026 tax reform.
What is the risk of misclassifying an NFT for tax purposes?
If the tax authorities reclassify it, particularly if the buy-resell activity is judged to be habitual, the gains can be taxed under the progressive income tax scale (up to 45%), and penalties of up to 80% may apply in the case of undisclosed activity.
Should you consult a professional before declaring your NFTs?
Yes. NFT taxation remains a grey area of French tax law, with no settled position from the legislature or the tax authorities: personalised tax advice is recommended before any declaration, particularly for significant amounts.
Sources
impots.gouv.fr, taxation of capital gains on digital-asset disposals
service-public.gouv.fr, taxation of capital gains on securities
BOFiP, flat-rate tax on precious items (BOI-RPPM-PVBMC-20-10)
Regulatory disclaimers: Marketing communication. Investing carries a risk of partial or total capital loss. Past performance is not a reliable indicator of future performance. This article is provided for information and educational purposes only; it does not constitute personalised investment advice, a buy or sell recommendation, or tax advice. Crypto-assets are highly volatile and carry a risk of total capital loss. They benefit from no capital guarantee, and from no deposit guarantee or investor compensation scheme. Before investing, read the Key Information Document (KID) and, where relevant, consult an authorised adviser. Finary SAS, an investment firm authorised by the ACPR (no. 19283), member of AMAFI. Insurance broker registered with ORIAS (no. 21001279), member of the CNCGP (association approved by the AMF). Crypto-Asset Service Provider (CASP) authorised by the AMF under the MiCA regime, references no. A2026-026 and no. N2026-008.
