Bitpanda is simplifying the way you report taxes on crypto in Austria

What are the new regulations?

The new rules regarding the taxation of crypto took effect on 1 March 2022. In this revised structure, gains generated from crypto are classified as income from capital assets and subjected to taxation at a rate of 27.5%.

In accordance with this tax reform and in strict adherence to Austrian federal legislation, from 1 January 2024, Bitpanda will automatically withhold taxes for Austrian users on gains generated from crypto,and conversions between crypto and non-crypto assets (e.g. BTC to AMZN). 

TL;DR, from January, we’ll handle any taxes relating to your crypto investments on Bitpanda in Austria for you, so you can concentrate on the interesting stuff.

To ensure full transparency, you will be able to see the exact amount of tax withheld for each taxable transaction from 1 January 2024. In addition, we will provide you with a comprehensive tax report for your personal accounts by 15 February 2025 at the latest.

Who is taxable in Austria?

The new regulations only apply to anyone who permanently lives in Austria, or if their primary residence is in Austria. Your nationality doesn't really matter, and we don’t report tax data in any country where this is not a regulatory requirement. 

If you are eligible, we will start to simplify the process of reporting your crypto income in Austria once the new regulations come into force from 1 January 2024. We will not look at past earnings or share this information. 

If you still live at the Austrian address you used during the registration and verification process, you don’t need to take any action. But if your address has changed or you wish to change your residential address, please contact customer support. Please note that if you don’t live in Austria permanently, or hold a primary address there, Bitpanda will not withhold taxes on your behalf.

What is taxable? 

The requirement to pay tax on income from cryptocurrency holdings started on 1 March 2022 and covers crypto bought after 1 March 2021. The definition of "income from realised capital gains of cryptocurrency holdings" includes when you convert or sell your crypto assets into any supported currency, for example Euro (EUR) or US Dollars (USD), swapping to non-crypto asset classes, for example metals or Bitpanda stocks*, and income realised when buying goods and services with crypto, including paying with the Bitpanda Card. Crypto-to-crypto swaps are not taxable.  

Here are two simple examples:

Example 1:

1. You buy 1 BTC in January 2022 for €34,000.

2. In January 2024, you sell 1 BTC at the (example) price of €50,000 (taxable).

To define the taxable amount, we deduct the selling price of BTC from the original purchase cost of BTC and calculate the special tax rate on this sum:

3. 50,000 € (selling price) - 34,000 € (purchase price) = 16,000 € (gains) * 27,5% = 4.400 € (tax amount)

4. €4,400 will be automatically withheld when selling your BTC. 

5. You will receive €45,600 in your wallet.

6. Your taxes are now done. 🎉 

Example 2:

1. In June 2020, you buy 1 BTC for €8,000.

2. In January 2024, you sell 50% of your BTC.

This transaction is not taxable as you purchased your Bitcoin before 1 March 2021. 

For more examples, check out the FAQ.

Declaring crypto deposits 

How much you are taxed will depend on when you initially bought crypto and its price. You will be able to share purchase prices and buy dates within the app. It’s important to do this as soon as possible in order to benefit from our simplified process. For additional advice and guidelines on this new process, please check out our Helpdesk page with frequently asked questions.

Where can I learn more about investing? 

Head over to our app for iOS and Android or our web app and check out the price developments of your favourite cryptocurrencies, stocks*, ETFs* and precious metals. Learn more about investing in the Bitpanda Academy and on the Bitpanda Blog. Don't want to miss our news? Don't want to miss our news? Follow our X and Instagram.

Disclaimer

The information shared in this article does not constitute investment advice and/or tax advice. Investing carries risks. Make sure to conduct your own research before concluding a transaction.