Gifting Bitcoin to Children: Tax Rules in Austria
Gifting bitcoin to children: the tax rules that apply in Austria
Transferring bitcoin to your own children is generally possible in Austria without the gift alone triggering income tax on any price gain accrued up to that point. There is no general gift tax either.
Even so, a larger transfer is not automatically without tax consequences. For one thing, a gift reporting obligation can arise. For another, in the case of a genuine gift the child generally takes over the tax history of the bitcoin, including the parent's acquisition costs.
The 50,000 euro threshold applies to parents and children
Children belong to the circle of relatives covered by the Austrian gift notification rules.
Gifts between relatives are generally exempt from the reporting obligation as long as the fair market value of the transfers between the same persons within one year does not exceed 50,000 euros in total. If that threshold is exceeded, the gift generally has to be reported.
Example:
- A parent gifts bitcoin worth 30,000 euros: generally no report on the basis of this gift alone.
- Later in the same relevant period, further bitcoin worth 25,000 euros follow.
- Total value: 55,000 euros.
The reporting threshold may thus have been exceeded.
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