I am a French tax resident and I receive my salary in CHF.
I use Interactive brokers to deposit the CHF, convert to EUR, and then use the EUR to purchase ETFs for example
Even when no ETFs are sold, the broker’s annual statements show small amounts under “Realized FX P/L” / “realized foreign exchange gain or loss”, classified in the Forex section of the reports.
More precisely, these amounts correspond to the difference in the EUR valuation of the CHF between the date the funds are deposited into the Interactive Brokers account and the date the CHF is converted into EUR. The amounts are small (a few tens of euros).
My question comes from the fact that these amounts are labeled as “realized” by Interactive Brokers and presented in the “Forex” section, even though they simply result from currency conversions necessary for investing, comparable to CHF-to-EUR conversions carried out for everyday use in revolut/wise.
In this context, should these amounts be declared in France, or are they considered non-taxable / non-reportable for a private individual? Is there a difference between converting CHF→EUR using revolut to go to the supermarket or sending and converting it in Interactive brokers? It seems like Interactive brokers creates a Forex spot trade and realizes the profit/loss
Thank you in advance for your feedback and experience.
I do not claim know the answer to your interesting question. However copying your query into AI generated an equally interesting answer. According to sources it cited, the foreign exchange gains are likely to be taxable in France as they are directly linked to an investment transaction. By contrast ordinary gains - eg arising from using a Revolut type card for daily expenses, that are not linked to investment transactions, are not generally taxable in France.
I cannot personally vouch for the answers, hence the brief summary. Why not copy your question yourself into your preferred AI platform and see if you get the same answer? If the amounts are material, and I suspect they are not, it would probably also be worth consulting a specialist.
I have to say that the answers AI produced seemed plausible and logical to me from a technical and common sense perspective.
If you do pursue the AI route, it would be interesting to learn if you get a different answer.
“Realized FX P/L” on a simple, one-off private conversion is generally not taxable by itself.
The Conclusions of the Rapporteur public in Conseil d’État 13/09/2021, n° 443914 explicitly state that for a private individual, an isolated / punctual FX gain is in principle non-taxable (“pas d’imposition sans texte”), and even gives an example with converting EUR→CHF→EUR. (Conseil d’État, Conclusions CRP 443914).
The idea is: without a specific taxable event (like disposal of securities) or a profit-making activity, there’s no standalone tax on a currency conversion.
FX does become taxable when it’s part of a taxable investment disposal.
The Conseil d’État decision (same case 443914) confirms that FX effects are embedded in the taxable capital gain when you sell foreign securities: acquisition price and sale price must be converted at the FX rates on those dates, so gains/losses of FX are “internalized” into the securities gain.
That’s different from a cash conversion done before buying ETFs.
Exception: if FX operations look like a lucrative trading activity, it may be taxable as BNC/BIC.
The same Conclusions mention that if currency operations amount to a lucrative activity, they can fall under BNC (CGI art. 92).
BOFiP also discusses taxable “sources de profits” / market operations in the BNC sphere.
So my current conclusion (happy to be corrected by someone with direct experience / a tax pro):
IBKR reporting a small “realized FX P/L” because it executes a spot conversion doesn’t automatically mean it’s a separately taxable gain for a normal investor. It’s likely comparable to Revolut/Wise conversions unless you are actively trading FX / doing it at scale as an activity.
The meaningful taxable FX impact should mainly appear when selling ETFs/foreign assets (because FX is included in the capital gain computation on disposal).
Note: Im assuming here that the gains/losses coming from revolut/wise currency transactions are not taxable, but Im not even sure about this.
Thanks for coming back with the results of the ‘AI route’.
I think what I would do (retired tax adviser) were I in your shoes, would be to make a brief, factual disclosure in the ‘mention.expresse’ section of your French tax return. This should at least put the Impôts on notice of your position regarding FX gains and losses, and hopefully head off any non-disclosure type penalties.