Investing in digital assets involves specific tax obligations, all the more so when it takes place in a cross-border context between France and Switzerland. Cantonal tax regimes, declaration of accounts, capital gains, decentralized financial operations: the applicable tax regime depends on both the type of operation and the place of tax residence. This guide sets out the current rules and practices to be followed.
Regulations and tax framework for cryptoassets
The taxation of cryptoassets is based on a legal qualification that varies from country to country. In Switzerland, FINMA considers them to be assets, which it classifies as payment, investment or utility tokens. This classification determines tax treatment. Each canton retains a margin of discretion, which leads to differences in concepts such as taxable assets and private investor status.
Although the MiCA regulation is not applicable in Switzerland, it does influence trade with the European Union. The traceability, transparency and investor protection obligations it introduces can have an impact on cross-border transactions.
Tax residency determines the rules governing tax returns. French residents must declare their foreign platform accounts and capital gains. In Switzerland, tax rules differ from canton to canton. Before embarking on any investment strategy, it is therefore essential to identify your precise residence and the applicable tax regime.
Typology of operations and associated tax regime
Crypto transactions are subject to different tax rules depending on their nature:
- Trading and capital gains: exempt in Switzerland for private investors meeting certain criteria, subject to a flat tax of 30% in France.
- Mining and staking: considered as business income in France; their treatment in Switzerland depends on volume and regularity.
- NFTs: taxation conditioned by their use (work, utilitarian asset, speculative instrument).
- Airdrops and forks: potentially taxable as benefits in kind, even without transfer.
- ICOs: income subject to taxation upon collection or resale, depending on the case.
Each situation requires rigorous tracking of flows, with proof of acquisition, receipt and recovery.
Decentralized finance operations (DeFi)
DeFi generates complex flows that call for heightened vigilance:
- Yield farming, liquidity mining: tokens received in return for the provision of liquidity are taxable according to their valuation.
- Crypto loans and borrowings: interest is treated as income from movable property.
- Governance tokens: their taxation depends on their use and valuation at the time of transfer.
Traceability is a key factor in the acceptance of these operations by the tax authorities.
Structuring and optimization strategies
Tax optimization is based on structuring assets, qualifying investors and exploiting differences between tax regimes.
- Wealth structuring: companies, trusts and foundations help to secure ownership, facilitate transfer and organize taxation.
- Private investor status: in Switzerland, this status is a prerequisite for capital gains tax exemption. It is defined by a series of criteria that must be met.
- French systems: the applicable system depends on the holding period, the nature of the assets and the use made of the platforms.
The relationship between French and Swiss taxation requires a cross-reading of bilateral agreements, particularly to avoid double taxation.
Compliance and risk management
Failure to file a tax return, or misclassification for tax purposes, may result in a tax reassessment. Authorities are stepping up their controls and demanding full documentation.
- Declaration of foreign accounts: mandatory in France, including for decentralized platforms if an identifiable link is established.
- International crypto transfers: these may be requalified as capital transfers subject to declaration.
- Archiving: transaction history, proof of purchase and sale, and traceability of conversions must be kept.
In the event of an error, a spontaneous adjustment can limit penalties, provided that complete and consistent documentation is provided.
Tax support for cryptocurrency investors
BERGEOT PAOLI Associés assists investors involved in trading, mining, staking or decentralized finance. Each situation is analyzed in the light of French and Swiss tax practices, taking into account international treaties and the taxpayer’s status. Thanks to a network of specialized partners (tax specialists, bankers, chartered accountants), the support we offer is tailored to the tax rules applicable to individuals with digital assets in several countries, with a constant focus on compliance and consistent reporting.