French lawmakers approved a proposal to expand the wealth tax to cover 'unproductive assets' like luxury goods, property, and digital currencies. The amendment by centrist MP Jean-Paul Matteï narrowly passed the National Assembly, 163 to 150, with support from socialist and far-right members.

The proposal will now move to the Senate for further debate as part of the 2026 national budget process.

Under the plan, individuals holding 'unproductive wealth' valued above E2 million would face a new 1% flat tax. The measure replaces the existing progressive real estate wealth tax, which currently charges up to 1.5% on assets exceeding E10 million.

Matteï argued that the change would promote 'productive investment' and address inconsistencies in the current system, which excludes assets like gold, classic cars, and cryptocurrencies.

The inclusion of digital assets has drawn criticism from the local crypto community. Éric Larchevêque, co-founder of crypto wallet maker Ledger, warned that the move sends a negative message, portraying crypto as economically 'unproductive.'

He cautioned that investors could be forced to liquidate their holdings to pay the tax, and expressed concern that the threshold might later be reduced.