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:

• acquisition cost of the Bitcoin: 20,000 euros
• later sale: 50,000 euros
• taxable gain: 30,000 euros
• capital gains tax at 27.5 percent: 8,250 euros

If the Austrian provider knows the correct acquisition costs, it can in principle calculate the tax automatically, withhold it and pay it to the tax office.

Once the tax has been withheld, income tax on that gain in private assets is generally settled. As a rule, the investor does not have to report the relevant investment income again in the tax return.

Which Bitcoin Holdings Are Affected?

The current Austrian crypto tax regime generally applies to cryptocurrencies acquired after February 28, 2021. Gains from this so-called new holding are generally subject to the special tax rate of 27.5 percent, regardless of the holding period.

Bitcoin acquired on or before February 28, 2021, by contrast, generally counts as legacy holding. The earlier tax rules continue to apply to it. With legacy holdings, no capital gains tax is therefore withheld automatically under the new crypto tax regime. For certain exchange transactions involving legacy assets, for instance, the Austrian finance ministry states explicitly that no withholding is to be made.

The withholding in the worked example from this article

Not Every Bitcoin Transaction Triggers Capital Gains Tax

What matters is whether a taxable transaction exists at all.

Taxable transactions include in particular:

• selling Bitcoin for euros,
• exchanging it for US dollars or other legal currencies,
• paying for goods with Bitcoin,
• paying for services with Bitcoin.

A direct exchange of Bitcoin for another cryptocurrency, by contrast, is generally tax-neutral. The previous acquisition costs are carried over to the cryptocurrency received. Anyone exchanging Bitcoin directly for Ether or for a stablecoin that qualifies for tax purposes therefore generally does not yet trigger any withholding on the price gain accumulated so far.

The Exchange Needs the Acquisition Costs

One of the biggest practical challenges arises when the Bitcoin was not bought directly from the Austrian provider. Anyone who acquired Bitcoin on a foreign platform and later transferred it to an Austrian exchange brings the coins along, but not automatically their complete tax history.

For the gain to be calculated correctly, the following in particular has to be known:

• when the Bitcoin was acquired,
• how high the acquisition costs were,
• whether tax-neutral crypto-to-crypto exchanges took place in the meantime.

The taxable gain is generally the difference between the sale proceeds and the acquisition costs. If these details are missing, the automatic withholding can deviate from the actual tax result. Investors should therefore file their historical transaction data with the provider and have it checked for plausibility before a sale.

Foreign Exchanges Often Do Not Withhold Austrian Capital Gains Tax

The picture is regularly different when Bitcoin is sold through a foreign crypto exchange that does not act as an Austrian withholding agent. The Austrian tax rate of 27.5 percent can still apply, but the tax is not paid automatically on the investor's behalf.

Investment income that is subject to the special tax rate but not to Austrian withholding generally has to be declared through the income tax assessment. This applies to foreign investment income in particular. Choosing a foreign exchange therefore does not make a taxable Bitcoin gain tax-free.

What Applies to Lending Income?

Automatic withholding can affect more than sales. Ongoing income from cryptocurrencies is generally covered by the special tax rate of 27.5 percent as well. This includes, for example, fees for making cryptocurrencies available, that is, certain lending income.

Where an Austrian withholding agent is involved, capital gains tax can be withheld automatically on such income too. With foreign platforms that do not withhold Austrian tax, the investor generally has to check whether the income has to be reported in the tax return.

Tax Reporting Helps With Checking

Since the 2025 calendar year, Austrian withholding agents have had to produce standardised tax reporting for crypto income at the investor's request.

Among other things, it can set out the income earned and the capital gains tax attributable to it. The reporting can be used for a loss offset or for the income tax assessment, for instance.

Investors should check the reporting in particular if they:

• have transferred Bitcoin from external wallets,
• use several crypto exchanges,
• hold both old and new Bitcoin positions,
• have realised losses with other providers,
• have submitted historical acquisition costs themselves.

An automatic tax deduction does not necessarily mean that every personal tax circumstance has already been taken into account.

Conclusion

At Austrian crypto service providers, the tax on Bitcoin gains is now handled automatically in many cases. For taxable new holdings, the special tax rate of 27.5 percent generally applies. The provider calculates the capital gains tax, deducts it and pays it to the tax office.

Correct calculation, however, depends above all on complete acquisition costs and a traceable transaction history. Anyone selling Bitcoin through a foreign exchange should not assume that the Austrian tax has been settled along with it. Where no Austrian withholding takes place, the taxable gain generally has to be reported through the income tax return.

(As of August 12, 2026. This article is not investment advice. Prices and fee structures change; check the terms with the provider before you buy.)