France Postpones 2027 Budget Vote and Rejects Crypto Exit-Tax Proposals

The French National Assembly decided to continue discussions regarding the revenue section of the 2027 state budget on Tuesday instead of proceeding with a scheduled vote. Officials stated that the agenda involves government questions alongside ongoing parliamentary debate concerning the budget revenue portion, with 758 amendments still awaiting review. This occurrence represents the second postponement of the vote, following an initial delay on October 20 when over 2,000 amendments remained unaddressed.

Parliamentary rules dictate that the National Assembly must finalize its first-reading examination before midnight on November 17. Should lawmakers ultimately reject the revenue section, the original governmental budget proposal will advance directly to the Senate without incorporating any amendments previously adopted by members of parliament.

France delayed its budget vote twice and defeated new crypto exit-tax measures.

During Friday sessions, the National Assembly formally voted down two separate proposals designed to implement exit taxes on unrealized cryptocurrency gains whenever taxpayers shift their official tax residence abroad. Lawmakers defeated the initial measure by a count of 27 votes in favor, 55 against, and one abstention. That specific proposal aimed to integrate digital assets directly into the existing national exit tax framework.

A secondary proposal faced similar rejection, garnering 31 favorable votes against 60 opposing votes. This rejected measure would have taxed unrealized gains associated with household digital asset holdings valued above 800,000 euros upon the relocation of tax residency outside France, provided the individuals maintained tax residency within the country for at least six years out of the preceding decade.

## Upcoming Crypto Legislative Proposals

Additional legislative proposals concerning digital assets remain pending for future parliamentary debate. One such proposal seeks to mandate the reporting of self-custodied cryptocurrency holdings carrying a combined valuation of 100,000 euros or more directly to tax authorities based on year-end valuations. A separate measure proposes exempting gains derived from digital asset payments for goods and services from taxation provided the aggregate transaction value does not exceed 1,000 euros across the entire tax year. Meanwhile, lawmakers previously approved a proposal on October 16 targeting gains generated when digital assets convert into fiat-pegged stablecoins, though that specific measure has not yet formally enacted into law.

Why it matters

The ongoing legislative delays in France influence the broader timeline of state budget approval and alter the regulatory trajectory surrounding digital assets within the European jurisdiction. The defeat of proposed exit taxes indicates that lawmakers are currently hesitant to impose specific levies on unrealized cryptocurrency gains for individuals relocating abroad, directly impacting digital asset holders and tax compliance frameworks in France.