Bitcoin Abroad: The Tax Duty Austrian Investors Carry Themselves
Bitcoin abroad: the tax duty Austrian users carry themselves
Anyone who is tax-resident in Austria and sells bitcoin through a foreign crypto platform does not escape Austrian taxation by doing so. The decisive difference from many domestic providers lies rather in the fact that often no Austrian capital gains tax is withheld automatically.
Taxable bitcoin gains must then, as a matter of principle, be recorded by the investor personally through the income tax assessment. For private crypto income the special tax rate of 27.5 percent continues to apply in principle.
A foreign platform does not mean tax-free
Austria taxes income from cryptocurrencies as income from capital assets. This covers both certain ongoing income and realized increases in value. A taxable sale exists in particular where bitcoin is disposed of for euros or another legal currency. Using it to purchase goods or services can also constitute a realization.
Example:
- bitcoin bought for 20,000 euros
- later sold for 50,000 euros through a foreign platform
- taxable gain: 30,000 euros
At 27.5 percent this results in principle in a tax of 8,250 euros.
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