The compact guide with the most important questions and answers about crypto taxes in Austria. Plus: What the Eco-Social Tax Reform of March 1st, 2022 means for you and the taxation of your cryptocurrencies or assets.
👆 Important crypto tax facts at a glance
- Since the new tax reform (March 1st, 2022), Austria distinguishes between old and new assets.
- The exchange from crypto to crypto (e.g. Bitcoin → Ethereum) is now tax-free!
- There is now only a fixed tax rate of 27,5% for (almost) everything.
- NFTs are still treated under the old regime (holding period, exemption limits and taxation at the progressive income tax rate).
2022 was a wild year for the crypto world. With the dramatic collapse of TerraUSD and LUNA, the prices of most cryptocurrencies dropped significantly and a crypto winter was ushered in – of course also for crypto investors in Austria. Since then, the negative headlines have been piling up, many more companies have run into financial difficulties and the insolvency of FTX and FTX.US is the current highlight.
In contrast, however, there are also many interesting projects from the DeFi, NFT or Metaverse sectors that hopefully learn from these mistakes and emerge stronger from this difficult time. In September, Ethereum also successfully switched from proof-of-work to the more energy-efficient proof-of-stake.
Additionally, a new law came into effect in Austria on March 1st 2022, which regulates crypto taxes to the greatest extent possible.
Whether you are directly or indirectly affected by these events, or have realized gains or losses trading cryptocurrencies in other ways, it all needs to end up correctly in your tax return. In our crypto tax guide 2023 for Austria, we show you exactly how to collect all relevant information for the tax office and get the most out of your crypto tax return.
Are cryptocurrencies taxed in Austria?
Short answer: yes.
Long answer: whether cryptocurrencies need to be taxed in Austria depends on several factors.
Since the new tax reform came into effect on March 1st 2022, a distinction is made between old and new holdings. The classification has an impact on the amount at which tax is paid. After one year of holding, holdings from old stock no longer have to be taxed. In addition, the old regulation had certain exemption limits under which gains remained tax-free. Both of these are no longer possible under the new rules.
On the other hand, crypto-to-crypto exchanges are now no longer taxable.
As you can see, this issue is complex. Please refer to the relevant chapters for even more detailed explanations.
What does the new tax reform mean for my crypto tax return?
In Austria, a new law that regulates crypto taxes to the greatest extent possible came into effect on March 1, 2022. It was first published in full as part of the Ecosocial Tax Reform on February 14, 2022 in the Federal Law Gazette for the Republic of Austria.
For users, the tax reform impacts how cryptocurrencies must be taxed. First and foremost, the date on which you purchased your assets is important for your tax settlement.
The specific purchase date determines whether your crypto assets belong to the old stock or already to the new stock. This classification determines whether you have to pay tax on your crypto gains at the progressive income tax rate (old stock) or at the fixed tax rate of 27,5% (new stock).
Cryptocurrencies purchased on or before February 28, 2021 are part of the old stock. Price gains and crypto income may be tax-free in this case.
The requirement is that you have held your assets for at least 1 year (365 days). Regardless of this, your transactions will be taxed at the progressive income tax rate (valid for non-interest-bearing crypto assets, e.g. selling, buying and exchanging with cryptocurrencies or even mining) or at the special tax rate of 27,5% (relevant for interest-bearing crypto assets).
Cryptocurrencies purchased on or after March 1, 2021 will be part of the new stock.
As of this date, cryptocurrencies and assets can no longer be sold tax-free.
The special tax rate of 27,5% will apply if cryptocurrencies are sold after March 1, 2022. New stock cryptocurrencies (purchase date March 1, 2021 or later) sold before March 1, 2022 will be taxed at the progressive income tax rate (old stock). The purchase of cryptocurrencies, on the other hand, is and will remain tax-free.
Because there are both users who have been in crypto for years and at the same time many for whom crypto is still new territory, we will go into detail about both the old and the new legal situation (valid from March 1, 2022) in our crypto tax guide.
How are crypto taxes calculated in Austria?
Here’s how cryptos were taxed before March 1st, 2022 (old rules).
As long as your gains stay below the 440€ exemption limit, you don’t have to pay taxes on them. Also, all your crypto gains on assets as well as rewards from staking, lending, and bounties that you bought or received before February 28, 2021, and didn’t sell for at least one year are tax-free.
However, if you bought and resold crypto within one year (365 days), the disposal will count as private speculative transactions. They must then be taxed at the progressive income tax rate. Specifically, this applies to crypto-to-crypto exchanges and crypto-to-fiat currency exchanges.
Progressive means that the amount of taxation on cryptocurrencies depends on your personal income.
To give you a better overview, we have mapped the income tax rates for 2022 in a table.
| Income from € | Income to € | Tax rate |
|---|---|---|
| 0 | 11.000 | 0 % |
| 11.000 | 18.000 | 20 % |
| 18.000 | 31.000 | 32,5 % |
| 31.000 | 60.000 | 42 % |
| 60.000 | 90.000 | 48 % |
| 90.000 | 1.000.000 | 50 % |
| 1.000.000 | 55 % |
Here’s how cryptos will be taxed starting March 1st, 2022 (new rules)
The new crypto tax reform is effective from March 1, 2022 and brings a number of changes, which we take a detailed look at here.
Benefits of the new crypto tax reform.
- Crypto-to-crypto exchanges (e.g. Bitcoin → Ethereum) are tax-free.
- There is now only a fixed tax rate of 27,5%, which you need to remember.
- You can do a joint loss offset with other capital market transactions like bonds, derivatives, etc.
Where there is light, there is usually also shadow. This is probably what HODLers are thinking right now, as they hold crypto investments primarily for the long term.
Disadvantages of the new crypto tax reform
- There’s no tax exemption anymore if you hold cryptocurrencies for more than a year.
- Cryptocurrencies purchased after February 28, 2021, will also fall out of the tax-free one-year holding period. (So only those who bought cryptocurrencies before February 28, 2021 and held them for at least 365 days can sit back and relax).
- The annual exemption limit of €440 is history.
Good to know: With the eco-social tax reform, cryptocurrencies are equated to capital assets under income tax law. This means that cryptocurrencies are equal to stocks, bonds, dividends, etc. in terms of taxation. With this, Austria creates a clear legal basis that makes life a bit more difficult for HODLers*, but at the same time offers traders options to invest their crypto assets in a tax-friendly way.
Calculate cryptocurrency tax (with example)
At first glance, the uniform tax rate of 27,5% is a welcome simplification for crypto users in Austria. In everyday life, however, the situation often turns out to be much more complex:
If you exchange crypto to crypto, this does not trigger a tax liability, but the acquisition costs have to be passed on. In a way, you can put off taxation.
However, should you decide at some point to exchange your cryptocurrencies for euros (or even an NFT), a tax liability will arise – and with it a not so simple calculation example.
Let’s take a quick look at the following example:
- Purchase of 1 BTC for 50.000€
- BTC increases to 70.000€
- Exchange of BTC for ETH (no taxable event).
- ETH purchased rises to 80.000€
- Sale of half of the ETH at 40.000€ (taxable event)
How much tax is now due?
40.000€ – 25.000€ (original purchase cost of the BTC, which was transferred to ETH during the exchange), from this sum then 27,5%.
15.000€ * 27,5% = 4.125€
So the tax on the sale is 4.125€
Pro-Tip: With the Blockpit tax software for cryptocurrencies, exactly such calculations are done for you fully automatically. So the days when you had to laboriously keep a record of your crypto transactions in an Excel file are over once and for all. That’s a good thing.
Why do I have to pay crypto taxes in Austria?
Even though no one likes to do it, paying taxes makes perfect sense. With tax money, the state can build hospitals, roads and schools. It can support people without jobs and in other precarious situations and distribute wealth more fairly.
In Austria, you have to take care of your crypto taxes independently, as the tax is not deducted at the source (e.g. broker). This is referred to as the obligation to cooperate.
So you can’t just wait for the government to approach you. Instead, you have to become active yourself and disclose all tax-relevant facts completely and truthfully.
The Blockpit crypto tax calculator can save you a lot of work!
Good to know: Starting in 2024, if you are liable to pay tax in Austria, crypto KESt will be automatically deducted for a domestic broker or exchange.
When do I have to pay crypto taxes in Austria?
Taxes on crypto arise when you make profits when exchanging or trading and when you earn income (current income) from crypto. Depending on the type of inflow (gains from exchange, gains from trade or income), the progressive income tax rate (0 – 55%), the special tax rate (27,5%) and the special feature: tax exemption after a one-year holding period applied in the previous tax regime.
All this has been simplified with the 2022 tax reform.
With the new tax reform in effect since March 1st, 2022, pretty much all crypto transactions are taxed at the special tax rate of 27,5% across the board (exceptions to this, of course, we’ll list for you).
In principle, the new taxation rules also apply to current income from cryptocurrencies – and regardless of whether old assets or new assets are used.
We will look at both situations, the old and the new rules.
Exchange of cryptocurrencies
Crypto can be exchanged for crypto (BTC, ETH, etc.) or for FIAT (euros, dollars, etc.).
Previously, one had to pay tax on crypto-to-crypto exchanges and crypto-to-fiat exchanges. The amount of tax depended on the total income (progressive income tax rate). In exchange, crypto could be sold tax-free after one year (hold for 365 days).
This still applies to all crypto assets received through exchange or purchase until February 28th, 2021. This is called legacy holdings.
With the new tax regime, crypto-to-crypto exchanges become tax-free. Tax is paid only for the exchange from crypto to fiat with the special tax rate of 27,5% anymore.
But beware: the acquisition cost is carried forward for a crypto to crypto exchange. See the following example:
- Purchase of 1 BTC for 50.000€
- BTC increases to 70.000€
- Exchange of BTC for ETH (not a taxable event).
- ETH purchased increases to 80.000€
- Sale of half of the ETH at 40.000€ (taxable event)
What is the amount of tax that is due?
40.000€ – 25.000€ (original purchase cost of the BTC, which was transferred to ETH during the exchange), from this sum then 27,5%.
15.000€ * 27,5 % = 4.125€
So the tax on the sale is 4.125€
The exchange from fiat to crypto is considered a purchase under both regulations. In this case, no tax is incurred.
Trading with cryptocurrencies
Futures and margin trading means trading financial instruments and exchange contracts. The subject of these contracts are not cryptocurrencies themselves, but a legal position (for example, on a delivery of cryptocurrencies or option right).
For example, in a 100.000€ trade, with a 10:1 leverage, you are only using 10.000€ of your own capital. Leverage amplifies the result.
With successful trades one achieves substantially higher profits, than only with own capital.
With unsuccessful trades correspondingly higher losses.
When exchanging cryptos for margin or futures products, realized appreciation, as well as gains from margin or futures trading, are taxed at the progressive income tax rate under both the old and the new regime.
Crypto Income
Here we give you a first overview of when you have to pay taxes. Details on the individual DeFi transactions can be found below.
Specifically, you pay taxes:
- When you get paid your salary in cryptocurrencies.
- When you exchange your cryptocurrencies for fiat money (euros, dollars, pounds, etc.)
- For receiving or disposing of DeFi remuneration:
When taxing DeFi consideration, you must keep in mind a basic distinction:
1) If you leave your cryptocurrencies to other market participants (e.g. a network or specialized companies), then the special tax rate (27.5%) is already applicable at the inflow.
It does not matter whether the income is paid out in cryptocurrency or fiat money, or whether it is a centralized or decentralized protocol.
This always applies if public placement is given, which can generally be assumed in the DeFi area.
If there is no public placement, tax is paid at the progressive income tax rate instead and the loss offset is also different.
Mining, lending, staking, liquidity mining and yield farming or liquidity providing may fall into this category.
2) However, income from (delegated) staking, airdrops, bounty or affiliate rewards or hardforks is not taxable at inflow. The acquisition costs are to be recognized at zero. Only upon subsequent sale against fiat currencies, the special tax rate (27.5%) applies.
Good to know: Because cryptocurrencies no longer fall under speculative income, but under capital gains, the previously valid exemption limit of € 440 is history. As of now, it only applies to NFTs (non-fungible tokens, note). NFTs still do not count as cryptocurrencies and thus remain other economic goods. They continue to be treated as physical gold and can be sold or traded tax-free after the one-year holding period.
Note: Profits from NFT trades and sales exceeding 440€ and realized within the one-year holding period (365 days) must be taxed at the progressive income tax rate (0 – 55%).
When do I not have to pay crypto taxes?
If you bought your cryptocurrencies before February 28th, 2021 and held them for at least 1 year (365 days), you won’t have to pay taxes when exchanging them for other cryptocurrencies or fiat money (euros, dollars, etc.).
You remain tax-free in addition:
- When you buy cryptocurrencies with fiat money.
- When you transfer cryptocurrencies between your wallets
- When you HODL and don’t touch your cryptocurrencies
- When you donate or give away cryptocurrencies
Good to know: gifts are always tax-free. Gift notification is required for strangers from €15,000 and for family members from €50,000.
With the new tax reform of March 1st, 2022, the following transactions will also become tax-free:
- Inflows from staking, airdrops, bounties or hardforks will not be taxed upon inflow and thus will not result in current income
Good to know: There are countless forms of staking, which must be considered on a case-by-case basis. Note the details in the corresponding chapter.
- Exchange of cryptocurrencies (e.g.: BTC → USDT).
Good to know: The tax-free exchange is limited to cryptocurrencies. Namely, if you exchange crypto for precious metals such as gold or for fiat, stocks, ETFs or derivatives, any resulting gain must be taxed at 27,5%. It’s also important to note when exchanging crypto for crypto that the cost of acquisition is carried forward. So if you eventually “cash out” in fiat, then you must use the original acquisition cost to calculate your gain. We’ll show you how this works on a day-to-day basis a little further down in our example.
Pro-tip: Since the exchange from crypto to crypto is no longer taxable since March 1st, 2022, you can “take” your gains over the years. To do so, simply convert them into a stablecoin such as USDT or USDC. You only trigger a taxable event when you “cash out” in euros, for example. Active traders* can also use this to circumvent the volatility in the crypto market.
The most important crypto assets and how they are taxed in Austria
We have summarized the most important use cases of crypto users in Austria and explain how they are taxed under the old regulation and the new regulation from March 1st, 2022.
How are DeFi assets taxed?
Taxation of DeFi-Assets according to the new regulation
Fortunately, the BMF has provided clear guidelines on DeFi taxation with the new regulation.
The following basic distinction applies: When cryptocurrencies are transferred to third parties (as is the case, for example, with Lending), the rewards are taxed once at 27,5% upon inflow and a possible capital gain is also taxed later at 27,5% upon disposal.
If only existing cryptocurrencies are used and they are not transferred to third parties, the inflow of rewards is not taxed. The acquisition costs are to be valued at 0€ and a later sale is taxed at 27,5%.
Here you can find a detailed listing:
Taxation of mining by individuals in pools.
Irrespective of the consensus mechanism: 27,5 % on inflow and on sale of the capital gain.
Taxation of Staking
Not taxable on inflow (zero approach) and 27,5% on sale (with few exceptions)
Good to know: There are countless forms of staking, which must be considered on a case-by-case basis. See the details in the corresponding chapter.
Taxation of Lending
27,5 % on inflow and on sale of the capital gain
Taxation of borrowing
No taxes
Taxation of Bounty and Affiliate programs
Inflow 0€, sale 27,5%
Taxation of Yield Farming
27,5% on inflow and 27,5% on sale (Attention: Both depends on the individual case, please ask your tax advisor).
Taxation of Liquidity Mining
27,5% on inflow and 27,5% on sale (Attention: Both depends on the individual case, please ask your tax advisor).
Taxation of airdrops
Inflow 0,€ sale 27,5%.
Taxation of hard and soft forks
Soft forks are disregarded for tax purposes. Hard-Forks: inflow 0€, sale 27,5%.
Taxation of NFT sales
Within 1 year (365 days) at income tax rate (0-55%); after 1 year: tax-free
Taxation of NFT trading
Within 1 year (365 days) at income tax rate (0-55%); after one year: tax-free
Taxation of Play to Earn
27,5 % on inflow and on sale of the capital gain
Tax on Learn to Earn
27,5 % on inflow and on sale of the capital gain
Taxation of DeFi assets according to the old regulation
The taxation of DeFi assets under the old regime in Austria also depends on the transaction you made.
If you made profits before March 1st, 2022, or alternatively from January 1st, 2022, you must apply either the income tax rate (0 – 55%) or the special tax rate of 27,5%.
Taxation of mining
Inflow and disposal within one year (365 days) at income tax rate (0-55%); after one year: tax-free
Taxation of staking
Inflow and disposal within one year (365 days) at income tax rate (0-55%); after one year: tax-free.
Note: The taxation of staking in the old legal situation has to be assessed on a case-by-case basis. If the protocol is decentralized and permissionless, a taxable transaction is not to be assumed due to the lack of (counter)performance.
Taxation of Lending
27,5 % on inflow and on the increase in value in the event of subsequent sale according to the BMF’s view
Taxation of borrowing
No tax
Taxation of Bounty and Affiliate Programs
Tax exemption limit up to 220€! Above that taxation at inflow and on the realized appreciation with the progressive income tax rate (0-55%)
Taxation of Yield Farming
Sale within 1 year (365 days) at income tax rate (0-55%); after 1 year: tax free. (Attention: This view depends on the individual case, please ask your tax advisor).
Taxation of Liquidity Mining
Sale within 1 year (365 days) at income tax rate (0-55%); after one year: tax-free (Attention: This view depends on the individual case, please ask your tax advisor).
Taxation of airdrops
Inflow 0€, sale within 1 year (365 days) at income tax rate (0-55%); after one year: tax-free
Taxation of hard and soft forks
Soft forks are not taxed.
Hard forks: within 1 year (365 days) at income tax rate (0-55%); after one year: tax-free
Taxation of NFT sales
Within 1 year (365 days) at income tax rate (0-55%); after one year: tax-free
Taxation of NFT trading
Within 1 year (365 days) at the income tax rate (0-55%); after one year: tax-free
How is mining of cryptocurrencies taxed in Austria?
Valid as of March 1, 2022 (new regulation):
Mining has to be differentiated whether it is done for private or commercial purposes. If it is used for private purposes, profits are now taxed at the rate of 27,5% upon inflow. Any increase in value will also be taxed at 27,5% upon disposal.
Valid before March 1, 2022 (Old regulation):
Again, a distinction must be made between whether you are mining as a business activity or using it for private purposes.
When mining solo, your profits are counted as income from a trade or business and must be taxed regardless of the one-year time limit.
If you are mining that does not fall under a commercial activity, i.e. pool mining or cloud mining, then all your extracted cryptocurrencies, from the moment you receive them, will be taxed under the income tax rate (other income iSd § 29 Z 3 EStG.).
If you sell the cryptocurrency later, you will not be taxed on the increase in value if more than one year (365 days) elapses between the inflow and the sale.
Let’s have a look at the following example:
Pool Mining Helium
Inflow on 30.11.2020
1000 HNT
Price according to Coinmarketcap: € 1
Tax burden: 0-55% of the inflow value. The tax base is 1.000€
Taxation with the income tax rate
Sale on 5.2.2021
300 HNT
Price according to Coinmarketcap: 2€
Sales price (600€) – acquisition cost (300e) = appreciation (300€)
Accordingly, the tax base is 300€.
Taxation with the income tax rate
Sale on 30.12.2021
500 HNT
The coins were held for more than 365 days.
No taxation of the increase in value
Good to know: Real certainty as to whether someone is operating privately or already commercially can only be obtained by looking at the individual case. In principle, however, the question always arises as to whether a commercial activity is being carried out in the overall picture. A high number of transactions or high-priced transactions per se do not necessarily lead to a commercial location.
How is staking taxed in Austria?
Effective as of March 1, 2022 (New Regulation):
Staking rewards do not constitute income and the acquisition costs are to be assessed at zero. So there is nothing to pay tax on when they are received.
However, if you later sell the Staking Rewards, you have to apply the tax rate of 27,5%.
Example: You have earned 500€ in ETH through staking in May 2022. The value of this cryptocurrency doubles and you sell. So you have to tax this 1.000€ at 27,5%.
Important: Staking rewards are only not taxed on inflow if they come from classic staking, where your cryptos are used for transaction processing (“block creation or validation”). The rule of thumb for this is that on-chain transactions are performed directly on the blockchain.
If, on the other hand, “staking” offers are used by platforms or exchanges that are offline, then it is lending according to the new legal situation. Your rewards are then already taxable upon inflow.
Valid before March 1st, 2022 (Old regulation):
Since staking was not specifically regulated by law before the new government bill, we assume that it is similar to mining and that you must again make a distinction between income from a business or from private purposes.
The prevailing view is that staking rewards can lead to income from other services. However, this needs to be examined more closely in each individual case: if, for example, no counterparty can be identified, the staking rewards may not be taxable.
In detail, the decisive factor is how the protocol is structured and on the basis of which functions the staking rewards are allocated. This view depends on the individual case, please ask your tax advisor.
How is Lending taxed in Austria?
Valid as of March 1st, 2022 (new regulation):
Regarding Lending, you have to consider the time of inflow. In this case, tax is payable on the inflow and on the subsequent increase in value when the asset is sold. The amount of tax in both cases is 27,5%.
Pro Tip: Since the tax liability arises at the inflow, with the price of the coin at the time of inflow, plan during the year again and again for your tax, in which you repeatedly sell coins. That way, you’ll be prepared should the price of your Coin drop at the end of the year when your tax is due.
Effective before March 1st, 2022 (Old Rule):
Lending is classified as an interest-bearing investment and is taxed as an asset at the special 27,5% rate when it is received. Realized appreciation is also taxed later at 27,5%.
How are bounty or affiliate programs taxed in Austria?
Valid as of March 1st, 2022 (New regulation):
If you participate in a bounty or affiliate program in the crypto space, then you will mostly get free cryptocurrencies in return.
Here, the new government bill makes it very easy for you. You only have to pay attention to the fixed tax rate of 27,5%, at the time of sale. The acquisition costs have to be set at 0€, and the taxation of the gains takes place at the time of sale.
Valid before March 1st, 2022 (Old regulation):
According to the old regulation, a service is provided for bounties, which is why the coins received are taxable as other services at the time of receipt.
A tax-free limit of 220€ applies here. If this is exceeded, tax must be paid at the progressive income tax rate on the inflow. On disposal, likewise on the realized increase in value.
How are yield farming and liquidity mining taxed in Austria?
Valid after March 1st, 2022 (new regulation):
With regard to yield farming and liquidity mining, two processes must be distinguished:
1. Exchanging assets into a yield farming protocol or into a liquidity pool:
In our view, both operations are generally swaps, i.e., non-taxable crypto-to-crypto transactions.
2. Rewards flowing to you:
Whether the rewards are taxed when they flow to you depends on whether the cryptocurrencies used are left to other market participants. According to the crypto tax reform materials, this is the case here, making the Rewards taxable at 27,5% upon inflow. Any appreciation is also taxed at 27,5% upon disposition.
Note: This view on both processes depends on the individual case, please ask your tax advisor.
Good to know: We will revise this section regularly. If you have a detailed question, we will be happy to answer it in our Blockpit Discord channel.
Valid before March 1st, 2022 (Old regulation):
Yield Farming or Liquidity Mining is an evolved DeFi concept of revenue maximization through the use of smart contracts. It essentially seeks to combine various DeFi operations such as borrowing, lending, and rewards of governance tokens across different DeFi protocols to maximize returns.
From a tax perspective, each step must be evaluated individually to determine the tax treatment. Let’s take a brief look at these steps in detail:
Add liquidity to a pool
Happens, for example, by exchanging USDC and ETH into a liquidity pool token (LP token). This process falls under the exchange taxation. This means that the gains are taxable at the progressive income tax rate within the speculation period; after that, they are tax-free.
Receipt of a token (mostly Governance Tokens) as Staking Rewards
This transaction is already taxable upon receipt – at the progressive income tax rate.
Receipt of a token as Lending Rewards (interest-bearing investment)
This transaction is also taxable at inflow – but with the special tax rate of 27,5%.
Borrowing
Borrowing of tokens is not taxable
Exchange of the LP token for the original token pair
Taxable transaction where the progressive income tax rate comes into play. Tax liability does not apply when waiting for the one-year speculation period.
Good to know: We will revise this section periodically. If you have a detailed question, we’ll be happy to answer it in our Blockpit Discord channel.
How are airdrops taxed in Austria?
Valid as of March 1st, 2022 (new regulation):
Airdrops, also called gratuitous transfers, do not constitute income. They are mainly issued to publicize newly emerging projects in the field of blockchain technology and transferred to a wallet for free without any consideration.
Therefore, the acquisition cost is considered to be 0€.
If you sell airdrop gains, you have to apply the 27,5% tax rate at the time of sale.
Good to know: We will revise this section regularly. If you have a detailed question, we will be happy to answer it in our Blockpit Discord channel.
Valid before March 1, 2022 (Old regulation):
Airdrops are considered as inflows without consideration in Austria. When received, the acquisition costs are valued at 0€.
If you then also observe the one-year holding period (365 days), your gains are tax-free.
If you sell earlier, you have to apply the progressive income tax rate to your gains.
How are hard and soft forks taxed in Austria?
Valid as of March 1st, 2022 (new regulation):
Regarding soft forks, it’s quite simple. Since you don’t get any new cryptocurrencies here, there is also nothing you have to pay tax on.
With hard forks, the BMF differentiates, as you actually receive new cryptocurrencies here.
However, since these have a value of 0€ when issued, no taxes are charged when received. When you sell them, the tax rate of 27,5% applies to any gains.
Valid before March 1st, 2022 (Old regulation):
Soft forks remain disregarded for tax purposes under the old rule, as this is simply an update of sorts.
With hard forks, your income counts as a speculative transaction. Therefore, the progressive income tax rate is applied in case of a sale within the one-year period. The acquisition date of the original cryptocurrencies is also relevant for the newly received cryptocurrencies.
The acquisition cost of the newly received cryptocurrencies must be set at 0. Therefore, the full proceeds from the sale within the one-year limit of Section 31 EStG are taxable at the income tax rate.
If the original cryptocurrency is held for more than one year, the disposal proceeds from the new cryptocurrency (the one derived from the original cryptocurrency) are immediately tax-free.
If you’re in business, it’s similar. The only difference is that the one-year time limit does not apply. This means that a gain is taxable on the sale in any case.
How are NFTs (Non-Fungible Tokens) taxed in Austria?
NFTs are “non-fungible tokens.” They are not addressed in the new draft law and therefore do not fall under the definition of a cryptocurrency.
This means that the new tax rules will not apply to NFTs and the old rules will still apply.
So, if you hold NFTs for more than one year (365 days), your gains will be tax-free.
If you sell NFTs within a year, you pay the progressive income tax rate from 0 to 55% on gains.
The same applies to NFT trades: if you trade only after one year, gains are tax-free.
If you don’t want to wait that long, you pay the progressive income tax rate of 0 to 55% on gains.
Good to know: For NFTs, there is still an exemption limit of €440. Gains below this limit remain tax-free even if you sell within one year. Attention: As soon as your profit is one Euro above the exemption limit, you have to pay tax on your entire profit at the progressive income tax rate.
How are exchange fees taxed in Austria?
Transaction fees, i.e. gas fees and similar, can be claimed as expenses in Austria and offset against your profits.
However, Blockpit already considers transaction fees as incidental acquisition costs and therefore they are already deducted from the profit. You do not have to declare them separately in your tax return.
What happens if I do not file my crypto tax return?
In Austria, there are new legal regulations regarding the tax treatment of cryptocurrencies since March 1, 2022. They also apply to cryptocurrencies acquired after February 28, 2021.
Those who do not comply with these regulations must justify themselves in the event of a possible inspection in Austria and sometimes face severe penalties. Depending on the severity, this can involve a tax refund, high fines or even imprisonment.
In the event of a suspicious case, the tax authorities can investigate retroactively for up to 10 years. For reasons of transparency and traceability alone, it is therefore advisable to document all crypto transactions of the last few years.
This can be done better than with an Excel document with the Blockpit crypto tax calculator, which clearly prepares your portfolio and correctly calculates crypto taxes for you.
Does the Federal Ministry of Finance know that I hold or trade cryptocurrencies?
Yes. The Federal Ministry of Finance already works closely with existing crypto exchanges, which in turn release KYC (Know Your Customer, note) data to ensure compliance requirements in Austria.
Also, with the EU Commission’s upcoming DAC-8 directive, the Federal Ministry will be able to check if you own cryptocurrencies.
Do I also have to pay taxes on crypto gains that happened years ago?
Yes. You should keep a record of your cryptocurrency transactions for the last 10 years. After all, there is definitely a chance that you will be audited. And especially in the volatile crypto space, amounts can add up quickly.
The easiest way to do this is to keep continuous documentation with Blockpit’s crypto tax software, which clearly and automatically documents the transaction date, the value in euros on the transaction date, the intended use and the recipient.
If you are not sure whether you have correctly declared the transactions of your cryptocurrencies and assets, it is best to proactively contact the BMF, as there is a duty to correct incorrect declarations.
Is it possible to avoid crypto taxes in Austria?
Crypto taxes may not be evaded. Even if no one likes to do it, paying taxes makes perfect sense. With tax money, the state can build hospitals, roads and schools, it can support the poor and unemployed and distribute wealth more fairly.
Tax evasion is illegal and can result in a fine or, in serious cases, imprisonment. In addition, the evaded taxes plus interest and late payment penalties must be paid.
However, what is already possible is to optimize your crypto taxes. You can read how this works in the next section.
How to optimize taxes on crypto profits (and pay less taxes).
Even with the new government bill, there are still ways you can effectively optimize your taxes, leaving you with more money.
The easiest way is to hold legacy cryptocurrencies for longer than 1 year (365 days). In this case, you won’t have to pay taxes.
Another tip for cryptocurrencies from new holdings is not to withdraw your cryptocurrencies into a fiat currency such as EUR, but instead convert them into a stablecoin such as USDT.
This way, you bypass the high volatility in the crypto market while enjoying the benefits that come with a stablecoin. It’s a worthwhile option since with the new government bill, crypto-to-crypto exchanges are tax-free.
Note: Nevertheless, stablecoins must also be viewed with caution, as the case of Terra’s stablecoin UST has shown.
Last but not least, you can also offset accruing crypto gains or losses with gains and losses from other capital market transactions, such as stocks.
How to offset crypto losses
Crypto assets were defined as income from capital assets for the first time with the new tax reform. As a result, crypto losses can be accounted for as capital losses.
One way you can optimize your taxes is by realizing and offsetting crypto gains and losses against gains from other capital market transactions (e.g., stocks, bonds, distributions, and derivatives) in the same tax year (Jan. 1-Dec. 31).
This makes sense, for example, if gains and losses were realized by selling crypto assets in fiat currencies. The exchange between two crypto assets is tax-free with the new tax reform of March 1st, 2022, and accordingly cannot trigger taxable gains or losses.
Of course, these bills will only become relevant for you with the tax return for 2022, which you can file from Jan. 1st, 2023 at the earliest.
Pro tip: With Blockpit’s tax optimization feature, you can easily identify tax-free profits. By the way: Blockpit is available in the Basic license starting at 79€ per tax year.
For whom early opting makes sense
You may have heard that you can opt into the new regime starting Jan. 1st, 2022. But what does that mean for you and your taxes? Quite simply, with the new tax reform from 1.3.2022, the special tax rate (27,5%) replaces the previously applicable progressive income tax rate, which can be as high as 55% depending on your income.
However, crypto holders can opt into the new regime as early as 1.1.2022. This step is recommended for most people who expect an annual income of more than 18.000€. Why 18.000€ in particular?
A look at the income tax table will help:
| Income from € | Income to € | Tax rate |
|---|---|---|
| 0 | 11.000 | 0% |
| 11.000 | 18.000 | 20% |
| 18.000 | 31.000 | 32,5% |
| 31.000 | 60.000 | 42% |
| 60.000 | 90.000 | 48% |
| 90.000 | 1.000.000 | 50% |
| 1.000.000 | 55% |
As can be seen from the table above, the part of your income above 18.000€ is taxed at a higher rate.
The individual tax rate is then different for each person, since everyone has a different income. The result is a mixed tax rate. If this is higher than the special tax rate, the early opting makes sense, because then the lower special tax rate of 27,5% is already applied to the months of January and February 2022.
Note: The early opting is relevant once for the tax return 2022, which you can submit at the earliest from January 1, 2023. In all likelihood, there will be a corresponding opt-in in the tax return.
How do I do my tax return for cryptocurrencies?
You can submit your tax return both digitally via FinanzOnline and in paper form by mail. There is an overview of relevant tax forms at the Ministry of Finance.
Where do I enter cryptocurrencies in my tax return?
The most important form for you is the E1 form. The latest submission date is June 30, 2023. You can find more information on any deadline extensions in the previous question.
Pro-tip: Choosing the right form is one thing. Filling it out correctly with the exact amounts calculated in the appropriate lines is something else entirely. With Blockpit you get a legally compliant tax report. In simple terms, it’s a PDF that already shows exactly where you have to enter which contributions in your tax return. You save yourself the search for the right fields and time-consuming calculations.
You can see exactly how this looks in our example report.
Do I have to declare my entire crypto holdings or only my profits in my tax return?
No, you do not report your entire crypto holdings on your tax return. Instead, you declare your profits or losses and declare income from cryptocurrencies.
Pro-tip: Blockpit provides you with a legally compliant tax report. In simple terms, this is a PDF that already shows exactly where you have to enter which contributions in your tax return. This saves you searching for the right fields and time-consuming calculations.
You can see exactly what this looks like in our sample report.
By when do I have to file my tax return for my crypto profits?
Generally, a tax return is always filed for a year that has already passed. So if you want to do your tax return for 2021, you can do it in 2022 at the earliest. For the annual tax return in Austria, the form in which you file it is decisive.
- Earliest possible submission: mid-February of the following year
- In paper form: by April 30 of the following year
- Online: by June 30 of the following year
- Via tax advisor: deadline extension can be requested
Pro-tip: The deadlines for online filing as well as in paper form can be extended upon justified request. An application for an extension of the deadline can easily be submitted electronically in FinanzOnline (Additional Services/Extension of Deadline). There is even more time for applications via a tax advisor or company trustee.
FiFo or LiFo: Which calculation method will be used for my tax return?
According to the German interpretation, the first-in-first-out (FiFo) method is the most suitable to reliably determine the acquisition costs of cryptocurrencies and assets. This calculation method is used by Blockpit when calculating the tax report.
This means that the crypto assets acquired first (first-in) are also the first to be resold (first-out). The difference serves as the basis for taxing subsequent proceeds and profits.
Good to know: When determining the order of use of sold assets, the principle of individual consideration applies as a matter of principle. However, in the fast-moving and transaction-rich crypto world, an individual consideration is hardly feasible. In this case, the legislator is accommodating crypto users.
This means that the FiFo procedure applies to the order of use. The same applies to the determination of value, where the average method is actually to be applied. For reasons of simplification, the FiFo method also applies here: FiFo comes into play.
Common challenges with crypto tax returns
The crypto jungle certainly still has one or two challenges to offer. Be it Exchanges without complete transaction history, opaque DeFi platforms or complex margin and futures trading.
To prevent problems, make sure you have proper documentation already during your crypto activities.
Blockpit is a software solution that can connect to a variety of exchanges and wallets and automatically import transactions. All other transactions can be added manually.
Crypto tax software: How Blockpit automates your crypto tax return.
If you’ve ever filed a tax return, you know how many hours can go into research, documentation, and preparation.
With Blockpit’s legally compliant tax reports, you not only save yourself a lot of time, you also get a comprehensive overview of all your crypto transactions and ultimately exactly what you really need: a legally compliant PDF that you can easily submit to the tax office.
To give you a better idea of the whole thing, we show you the most important screenshots from a sample Blockpit tax report here. You want to have a look at every detail? Here’s the full PDF of our crypto tax sample report.
Crypto Tax Report Overview
This is what it looks like, the Blockpit tax report as a handy PDF that you can submit directly to the Austrian tax office. Right at the beginning, it gives you an overview of your income from speculative transactions and services, as well as capital gains related to cryptocurrencies.
Income tax return form
This is followed directly by the appropriate BMF form for submitting the income tax return. Practical: Blockpit not only calculates the amounts to be declared for you, but also enters them in the correct field right away.
Individual transaction list
With the exact listing of all your transactions, you always have the complete history of your crypto year in view. Great for a manual check and of course also as a documentation aid in case of any inquiries.
When does crypto tax consulting make sense?
By itself, Blockpit offers a software solution to create your crypto tax return, with which no tax consulting is necessary. However, it may still make sense to consult a tax advisor, for example in the case of more complex constructs or potential commerciality. If you trade with very large amounts, an additional check is certainly not wrong.
On the Hallo Sophia portal, you can book a consultation with various experts on the topic of tax returns for cryptocurrencies with just one click.
Something unclear? Here we have summarized important questions for you.
When do taxes apply to cryptocurrencies?
Generally, taxes on crypto are incurred in Austria if you make profits when exchanging or trading and if you generate income (current income) with crypto,. Depending on the type of inflow (gains from exchange, gains from trading or income), the progressive income tax rate (0 – 55%), the special tax rate (27,5%) and the special feature: tax exemption after a one-year holding period applied in the previous tax regime.
All this has been simplified with the 2022 tax reform.
With the new tax reform in effect since March 1, 2022, pretty much all crypto transactions are taxed at the special tax rate of 27,5% across the board (exceptions to this, of course, we’ll list for you).
In the new regime, a crypto-to-crypto exchange no longer triggers an immediate tax liability. The acquisition costs are carried forward each time.
In principle, the new taxation rules also apply to current income from cryptocurrencies – and regardless of whether old assets or new assets are used.
In which cases are cryptocurrencies tax-exempt?
In Austria, cryptocurrencies that were purchased or accrued on or before February 28, 2021, belong to the so-called old assets. Here, the holding period still applies, which means you can sell these cryptocurrencies tax-free after a holding period of at least 365 days.
In the old regulation, there was also an exemption limit of 440€, but this is now history. However, both the holding period and the exemption limit still apply to NFTs. This means that you can sell NFTs tax-free after a holding period of at least 365 days. Gains from the sale of NFTs that are less than 440€ per year are also tax-free.
In the new regime, trades from crypto to crypto no longer trigger tax liability. Note, however, that the acquisition costs are passed on. In a way, you can put taxation on the back burner.
How long is the holding period for cryptocurrencies?
The holding period in Austria now only exists for cryptocurrencies from old holdings, i.e. holdings that were acquired before February 28, 2021. If these are held for at least 365 days, they can be sold tax-free.
For NFTs, the holding period still applies in Austria. If you hold an NFT for at least 365 days, you can sell it tax-free.
What is the tax rate on crypto gains?
In Austria, cryptocurrencies purchased on or before February 28, 2021 are part of the legacy portfolio. Profits from these legacy assets are taxed at the progressive income tax rate (valid for non-interest-bearing crypto assets, e.g. sale, purchase and exchange with cryptocurrencies or also mining) or at the special tax rate of 27,5% (relevant for interest-bearing crypto assets).
Cryptocurrencies purchased on or after March 1st, 2021 will be part of the new stock.
As of this date, cryptocurrencies and assets can no longer be sold tax-free.
The special tax rate of 27,5% will apply if cryptocurrencies are sold after March 1st, 2022. New stock cryptocurrencies (purchase date March 1, 2021 or later) sold before March 1st, 2022 will be taxed at the progressive income tax rate (old stock). Cryptocurrency purchases, on the other hand, are and will remain tax-free.
What is the exemption limit for cryptocurrencies?
Because in Austria, since the new tax reform, cryptocurrencies no longer fall under speculative income but under capital gains, the previously valid exemption limit of 440€ is history.
As of now, it only applies to NFTs, as these still do not count as cryptocurrencies and thus remain other economic assets. So if the annual profits from trading NFTs remain below this limit, they do not have to be taxed.
Also, the exemption limit of 220€ for income from services (e.g. bounties) no longer exists since the new tax reform.
What happens if I don’t pay tax on my crypto gains?
Depending on the severity of the tax evasion, this can result in a tax refund, high fines or even prison sentences in Austria.
In the event of a suspicious case, the tax authorities can investigate retroactively for up to 10 years. For reasons of transparency and traceability alone, it is therefore advisable to document all crypto transactions of the last few years.
How is Bitcoin BTC taxed?
If you invest in Bitcoin BTC in Austria as a private individual, you can trigger a tax liability. The prerequisite for this is that you have your domicile or habitual residence in Austria (i.e., you are in Austria for more than 180 days per year).
Bitcoins purchased on or before February 28th, 2021, belong to the old stock. Price gains and crypto income may be tax-free in this case. This is provided that you have held your assets for at least 1 year (365 days). Regardless of this, your transactions will be taxed at the progressive income tax rate (valid for non-interest-bearing crypto assets, e.g. selling, buying and exchanging with cryptocurrencies or even mining) or at the special tax rate of 27,5% (relevant for interest-bearing crypto assets).
Bitcoins purchased on or after March 1st, 2021 will be part of the new stock.
As of this date, cryptocurrencies and assets can no longer be sold tax-free.
The special tax rate of 27,5% will apply if cryptocurrencies are sold after March 1st, 2022. New stock cryptocurrencies (purchase date March 1st, 2021 or later) sold before March 1st, 2022 will be taxed at the progressive income tax rate (old stock). Cryptocurrency purchases, on the other hand, are and will remain tax-free.
How is Ethereum ETH taxed?
If you invest in Ethereum ETH in Austria as an individual, you may trigger a tax liability. The prerequisite for this is that you have your domicile or habitual residence in Austria (i.e. you are in Austria for more than 180 days per year).
Ethereum purchased on or before February 28, 2021, belongs to the old stock. Price gains and crypto income may be tax-free in this case. The requirement is that you have held your assets for at least 1 year (365 days). Regardless of this, your transactions will be taxed at the progressive income tax rate (valid for non-interest-bearing crypto assets, e.g. selling, buying and exchanging with cryptocurrencies or even mining) or at the special tax rate of 27,5% (relevant for interest-bearing crypto assets).
Ethereum purchased on or after March 1, 2021 is part of the new stock.
As of this date, cryptocurrencies and assets can no longer be sold tax-free.
The special tax rate of 27,5% will apply if cryptocurrencies are sold after March 1, 2022. New stock cryptocurrencies (purchase date March 1, 2021 or later) sold before March 1, 2022 will be taxed at the progressive income tax rate (old stock). Cryptocurrency purchases, on the other hand, are and will remain tax-free.
Can I pay taxes in cryptocurrencies?
No, so far it is not possible to pay your taxes in cryptocurrencies in Austria.
In which countries are cryptocurrencies tax-free?
Currently, Portugal, Singapore, Malta and Switzerland, for example, can be classified as very crypto-friendly countries for private individuals.
Are there any advantages if I move to another country?
Before the new tax reform, you didn’t have to worry regarding the tax consequences of moving to another country. However, as of March 1, 2022, that has changed.
If you move to a third country like Thailand or Mexico, your crypto assets will have to be taxed before that. It’s different if you move to an EU or EEA country. In this case, you only have to pay taxes when you sell your assets.
When am I a commercial investor?
The counterpart to the private investor (income from capital assets) is the commercial investor (income from business operations). A prerequisite for a commercial activity is, for example, that investments are made for third parties.
The decision as to whether private or already commercial activity always leads to discussions, as crypto tax consultant Brameshuber explains:
“In principle, the question arises as to whether a commercial activity is being developed in the overall picture. Only a look at the individual case provides real certainty. However, both a high number of transactions and high-priced transactions do not necessarily lead to a commercial location.”
Since the majority of crypto users can be assumed to trade privately, this guide is aimed at private individuals.
Are you a commercial crypto trader if you day trade in crypto?
The Federal Ministry of Finance has not yet provided a precise statement on commercial crypto trading. There is also no case law on this topic yet. In principle, however, it can be said that all these activities per se do not lead to a commercial activity.
Good to know: We will revise this section regularly. Ask your tax advisor if you are unsure.
