Crypto Tax Legislation & Law in Austria

There is specific legislation for the taxation of crypto-assets in Austria. The new rules were implemented recently (2022) in the Austrian Income Tax Act.

The exchange of crypto-assets for conventional FIAT currency leads to realised capital gains. The difference between the value received and the tax acquisition cost of the crypto-asset is taxed with a tax rate of 27.5%.

The exchange of crypto-assets for FIAT currency or for goods and services is taxed the same and leads to the realisation of capital gains/hidden reserves. However, the exchange of crypto-assets for other crypto-assets does not lead to the realisation of capital gains. The crypto-asset obtained is valued with the same tax acquisition cost as the crypto-asset surrendered, so it takes its place. The taxation is deferred in this case.

The distinction between professional trading and casual trading follows the general rules of Austrian income tax law. Traders who merely manage their private assets qualify as casual traders. The activities of traders who invest substantial time and effort into crypto-trading, in order to generate income which is higher than income that would be expected by mere private asset management, could qualify as professional activities. The resulting income would be regarded as professional income, not capital income. The amount of trades, and the degree of professionalisation by investing considerable amounts of money into special equipment, can be seen as important indicators of professional trading.

Losses made on crypto-assets can be offset on gains made on crypto-assets and on capital gains in general (for example realised gains on shares or current income from dividends). However, losses from crypto-assets cannot be offset against other income categories.

Losses from crypto-assets (and capital assets in general) can only be offset in the year in which the losses are realised. They cannot be carried forward to another tax year.

No, NFTs are excluded from the special tax rules on crypto-assets. NFTs are treated like movable assets. The private sale of NFTs within 1 year after acquisition is called “speculative trading” and is subject to regular (progressive) income tax rates.

Mining is taxed as current income from crypto-assets. Current income is subject to 27.5% income tax rate. The mined crypto-assets are valued at EUR 0 (acquisition cost for tax purposes) and their sale for FIAT currency will be taxed as realised capital gains (if the asset increased in value).

Classical staking does not lead to taxable current income and the crypto-assets obtained are valued at EUR 0 for tax purposes. Their sale at a later time may lead to income from realised capital gains. Anyone contributing crypto-assets as a means to transaction processing and obtaining crypto-assets as a reward is taxed this way.

Lending and liquidity pools lead to current income from crypto-assets which is subject to 27.5% income tax rate. Airdrops and hard forks do not lead to current income from crypto-assets, only the sale of the assets obtained might trigger tax. Income from professional activities is considered professional income as opposed to capital income.

Income from crypto-assets has to be declared to the tax authorities after the end of the respective tax year (subject to general rules). Beginning on 1 January 2024, certain Austrian crypto-asset service providers will be obliged to calculate, withhold and pay withholding tax on crypto income to the tax authorities.

No, not at the moment.