Taxation: France ranks last among 38 OECD countries, bad news for crypto holders

Last in class, with no recovery in sight. France occupies the 38th and last place in the 2026 Tax Competitiveness Index published by the Tax Foundation on October 19. The tax on conversions to stablecoins could further increase the burden on your cryptocurrencies. Its fate will be decided in a solemn vote on November 3.

Key Points

• Score of 45.7 out of 100, while Estonia remains at the top for the 13th consecutive year.
• The French corporate tax rate peaks at 36.1%, the highest in the OECD.
• For capital gains and dividends, Paris ranks 35th.
• Exchanging ether for USDC could become taxable in 2027.

Tax Foundation Ranking: France behind Colombia and Italy

The American think tank scrutinizes over 40 variables across five tax categories: corporate, income, consumption, wealth, and international rules. Verdict for 2026, France scores 45.7 points, down from 45.8 last year. It was already last in 2025. The six lowest countries in the 2026 Tax Foundation tax ranking -- Source: Tax Foundation

Colombia (47.3) and Italy (50.8) rank ahead. At the top of the table, Estonia (100), Latvia (92.5), and New Zealand (88.2) are in a league of their own. The Estonian model is based on one rule: corporate tax only applies to distributed profits, while reinvested profits are not taxed. Property tax only applies to the value of the land.

The Tax Foundation's report lists grievances without mercy. Corporate tax rate of 36.1% with surcharges, production taxes that account for 13% of corporate tax revenues, inheritance taxes, financial transaction taxes, and wealth tax on real estate. VAT only covers about half of final consumption. Labor is not spared either: its tax burden reaches 47%, one of the heaviest in the OECD.

Only one area saves the day. In terms of international tax rules, France ranks 13th, supported by a network of 123 tax treaties. France's scores in the five tax categories of the 2026 index -- Source: Tax Foundation

Neighbors all perform better. Switzerland is 4th, Luxembourg 6th, Germany 19th, Belgium 27th. Even Spain, at 35th, is three places ahead. France (large dot) compared to the other 37 OECD countries, tax category by tax category -- Source: Tax Foundation

This ranking has its limits. It assesses the neutrality and competitiveness of a tax system, not the public services it finances.

Crypto Taxation: France 35th out of 38 for Capital Gains

The details of the ranking directly impact your wallet. Regarding the taxation of capital gains and dividends, France ranks 35th. In terms of personal income tax overall, it stands at 33rd place.

Since January 1, 2026, a crypto capital gain is subject to a flat tax of 31.4%, following the increase in social contributions from 17.2% to 18.6% approved in the Social Security budget. Estonia applies a flat income tax rate of 22%.

And the 2027 budget adds another layer. Amendment I-3898 by Nicolas Sansu (GDR), adopted on October 16 by a vote of 38 to 37, removes the tax deferral on conversions to a stablecoin backed by an official currency. Selling ether for USDC would trigger tax starting in 2027, without a euro deposited into your bank account.

Two other texts are waiting their turn. One extends the exit tax to households holding more than 800,000 euros in crypto. The other, proposed by Charles de Courson (LIOT), would require the declaration of self-hosted wallets exceeding 100,000 euros.

These amendments, still under discussion, do not weigh in the 2026 index. Chainalysis has already warned that the tax on stablecoins would push French users towards platforms outside the Union or towards DeFi, beyond the reach of European tax declarations.

France's Neighbors More Lenient on Crypto Taxation

The Tax Foundation index does not rate cryptocurrencies. However, neighboring regimes paint a different picture.

Germany, ranked 19th, still exempts crypto capital gains after twelve months of holding. A project from the Federal Ministry of Finance plans to tax cryptocurrencies purchased from January 1, 2027, at 26.375%, but the text has not been adopted.

Portugal, ranked 33rd, exempts cryptocurrencies held for more than 365 days under certain conditions. The Czech Republic, ranked 7th, applies a three-year holding period. Italy, ranked 36th, now taxes at 33%.

A poorly ranked country can thus spare Bitcoin holders. France combines both disadvantages, holding the last place overall and no exemptions related to the holding period.

Debates on the first part of the 2027 budget will conclude on November 2, ahead of the solemn vote the following day. Last year, the Assembly rejected the revenue part by 404 votes to 1, and all crypto amendments were dropped with it.