Crypto Tax in Austria – FAQ
Is there specific legislation for the taxation of crypto-assets – or do general principles apply?
Yes, Austria has specific legislation for the taxation of crypto-assets.
The rules were introduced in 2022 as part of the Austrian Income Tax Act.
How is the exchange of crypto-assets for fiat currency taxed?
When you exchange crypto-assets for conventional fiat currency – such as USD, EUR, or GBP – any capital gains you make are taxable.
The taxable amount is the difference between the value received and the tax acquisition cost of the crypto-asset.
This is taxed at a rate of 27.5%.
Is the taxation of crypto-asset exchanges for goods, services, or other crypto-assets treated in the same manner as the above?
Exchanges of crypto-assets for goods, services, or FIAT currency are treated the same for tax purposes—they trigger the realisation of capital gains.
However, exchanging one crypto-asset for another (for example BTC to ETH to SOL) is different.
In this case, no capital gains are realised immediately.
Instead, the crypto-asset you receive inherits the tax acquisition cost of the one you gave up, deferring taxation until a later event.
When do crypto transactions qualify as a professional activity?
The distinction between professional and casual crypto trading depends on general Austrian income tax rules.
Casual traders are those managing private assets.
However, if someone invests significant time and effort into trading crypto-assets, aiming for income beyond what casual management would yield, they may be considered a professional trader.
What are the consequences of it being classed as a professional activity?
Professional income is taxed differently from capital returns.
Indicators include the number of trades and investments in specialised equipment.
Can losses from crypto-assets be offset, and if so, how?
- Losses from crypto-assets can be offset against gains from other crypto-assets or capital gains generally (e.g., realised gains from shares or dividend income).
- However, losses cannot be offset against income from other categories.
What is the time frame for offsetting losses?
Losses from crypto-assets must be offset in the same tax year they are realised. They cannot be carried forward to future tax years.
Are NFTs treated the same as crypto-assets for tax purposes?
No, NFTs are not subject to the special tax rules for crypto-assets.
They are treated like movable assets.
Selling an NFT within one year of acquisition qualifies as “speculative trading” and is taxed at progressive income tax rates.
How is mining taxed?
Income from mining is treated as current income and taxed at 27.5%.
Mined crypto-assets are valued at EUR 0 for tax purposes.
When these assets are sold for FIAT currency, any increase in value is taxed as realised capital gains.
How is staking taxed? Are there differences between validators and delegators?
- Classical staking does not generate taxable current income. Staked crypto-assets are valued at nil euros for tax purposes, with gains only taxed when the assets are sold.
- Rewards from staking, whether as a validator or delegator, are taxed upon sale as realised capital gains.
What other activities or models involving crypto-assets might trigger tax?
- Lending and Liquidity Pools: Income from these activities is considered current income and taxed at 27.5%.
- Airdrops and Hard Forks: These do not generate current income. Taxes apply only when the obtained assets are sold.
- Professional or Self-Employment Income: Earnings from professional activities (for example, consulting or employment paid in crypto) are treated as professional income rather than capital income.
Are there specific monitoring, documentation, and reporting requirements?
Yes.
Income from crypto-assets must be declared to the tax authorities after the tax year ends, following general tax rules.
Starting 1 January 2024, Austrian crypto-asset service providers must calculate, withhold, and remit taxes on crypto income directly to the authorities.
Are there any other unique aspects of crypto-asset taxation (excluding VAT)?
Currently, there are no additional specific provisions regarding the taxation of crypto-assets in Austria.
Final thoughts
If you have any queries on this article on Crypto Tax in Austria, or crypto tax matters more generally, then please get in touch.