Bitcoin Losses and Dividends in Austria: How the Tax Offset Works
Offsetting Bitcoin gains and dividends: what investors in Austria need to know
Bitcoin and shares are treated differently for tax purposes, yet in Austria they can meet when losses are offset. The Ministry of Finance states explicitly that gains and losses from cryptocurrencies can in principle be offset against certain other types of investment income. Dividends and realised gains on shares are among them.
That can be of particular interest to investors who sold Bitcoin at a loss while dividend income came in at the same time.
A Bitcoin loss can offset dividends
An example:
- Dividend income: 5,000 euros
- Realised Bitcoin loss: 3,000 euros
- Remaining positive investment income: 2,000 euros
Where the conditions for offsetting losses are met, the Bitcoin loss reduces the taxable dividends accordingly. Both dividends and taxable crypto income are in principle subject to the special tax rate of 27.5 percent. One point matters, though: a paper loss sitting in a Bitcoin wallet is not enough. The loss has to have been realised for tax purposes, for example through a sale for euros.
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