Bitcoin Capital Gains Tax in Austria: When Exchanges Withhold 27.5 Percent

Bitcoin Capital Gains Tax in Austria: When the Exchange Withholds 27.5 Percent Automatically

Anyone selling Bitcoin through an Austrian crypto service provider often no longer has to calculate the tax on the gain and pay it through an income tax return. Since 2024, certain crypto income has been subject to a mandatory capital gains tax of 27.5 percent, which the domestic provider withholds directly and forwards to the tax office.

For investors, the system increasingly resembles a classic Austrian securities account. However, the automatic withholding only works if the statutory conditions are met and the provider holds the necessary tax data.

When Does a Crypto Exchange Withhold Capital Gains Tax Automatically?

For investment income arising after December 31, 2023, domestic debtors and crypto service providers generally have to deduct capital gains tax. The obligation covers both certain ongoing crypto income and realised gains in value.

A typical case is the sale of Bitcoin for euros.

Example:

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