This article will outline the cryptocurrency tax system and the latest regulatory developments in Austria.

Written by: Fintax

1. Introduction to the Republic of Austria

The Republic of Austria is located in Central Europe, operates under a parliamentary system, and is a representative democracy consisting of 9 federal states. Austria joined the European Union in 1995 and is one of the founding members of the OECD. Austria is one of the early EU countries to reform its cryptocurrency tax system, and this article will review the cryptocurrency tax system and the latest regulatory developments in Austria.

2. Overview of Austria's Basic Tax System

2.1 Overview of the Austrian Tax System

The Federal Ministry of Finance (FMA) is the authority responsible for executing all financial laws and collecting taxes in Austria. This department allocates tax revenue to public and social services to improve the living standards of residents. The tax year follows the calendar year (January 1 - December 31) and implements a progressive tax system based on income brackets, with personal income tax rates ranging from 20% to 55%, which is relatively high within Europe.

According to the tax system, both residents and non-residents in Austria may be subject to taxation. Individuals who reside in Austria and stay in the country for more than 180 days each year are considered formal tax residents, regardless of nationality. Tax residents are required to pay taxes on their global income, including income from employment, business, investments, and property. For non-residents, Austria only taxes income sourced from Austria, known as "limited tax liability." However, if a non-resident's primary source of income is from Austria (for example, more than 90% of their income comes from Austria), they may be considered "unlimited tax liability persons" and must pay taxes on their global income. Non-Austrian nationals who are subject to taxation by the Austrian government may benefit from double taxation agreements (DTA) based on the OECD Model Tax Convention to avoid being taxed twice on the same income.

According to the 2024 Global Tax Base Erosion Report, Austria loses $130 million annually (about 1% of fiscal revenue) due to multinational tax abuse and has increased the investigation and penalties for significant tax evasion cases (fines starting at €150,000). To prevent tax avoidance and evasion, Austria participates in the Automatic Exchange of Information (AEOI) system, which allows tax authorities from different countries to exchange information, helping to prevent and monitor tax violations. In the domestic tax system, an individual's social security number (Sozialversicherungsnummer) serves as the tax identification number, usually registered by the employer. Self-employed individuals can obtain this number through the Self-Employed Social Insurance Institution (SVS). Additionally, taxpayers need a personal tax number (ATIN), which is issued by the tax office upon registration at their new residence or tax authority. For businesses, a VAT identification number (UID Number) must be obtained at the time of company registration for VAT purposes.

2.2 Personal Income Tax

Austria levies income tax on the global income of resident individuals and on income sourced from Austria for non-residents, with tax rates divided into six brackets of 20%, 30%, 41%, 48%, 50%, and 55%, where income below €13,308 is tax-exempt. The highest marginal tax rate (55%) is the third highest in Europe, following Denmark at 55.9% and France at 55.4% (for reference, the EU average top tax rate is about 42.8%).

2.3 Corporate Tax

As of 2023, the corporate tax rate in Austria is fixed at 24%, which is close to Spain's 25% and Belgium's 25%, but higher than Singapore's 17% and lower than South Africa's 27% and the BRICS countries' 27.20%. When distributing profits, companies must also pay a withholding tax on dividends at the shareholder level, which is 23% (for companies) or 27.5% (for other beneficiaries).

2.4 Value Added Tax (VAT)

Austria's standard VAT rate is 20%, with a reduced rate of 19% in the Jungholz and Mittelberg regions, slightly below the EU average of 21.6%. Books, food, and other items are subject to a reduced rate of 10%, while cultural entertainment, wine, and domestic flights are subject to a preferential rate of 13%. Certain exports and cross-border services, as well as medical, educational, and financial services, are exempt from VAT.

2.5 Other Taxes

In addition to the above taxes, Austria also levies property tax and real estate transfer tax on individuals. For businesses, municipal taxes must be paid to local authorities where a permanent establishment is located, and employers must withhold income tax from employees' wages, with both employers and employees required to pay multiple tiers of social security contributions. To promote environmental protection, the Austrian government imposes vehicle taxes, a one-time registration tax (based on vehicle emissions), carbon taxes, digital services taxes, and more.

In contrast to other regions, Austria abolished formal inheritance and gift taxes in 2008, with gifts below certain thresholds exempt from reporting (gifts from direct relatives or partners above €50,000, gifts from others above €15,000, and gifts of art, household items, and occasional gifts below €1,000). In comparison, other European countries still maintain higher inheritance tax policies: the UK still levies 40% on estates above £325,000, and countries like France and Germany generally fall within the 20–45% range.

2.6 New Tax Regulations in Austria

In 2025, to address inflation, the Austrian government raised the income tax threshold. In addition to imposing a 55% tax rate on income exceeding €1 million, the thresholds for other tax rates have also been raised by about 4%. This means that individuals with an annual income exceeding €13,308 will be required to pay income tax. Additionally, some deductible items, such as single-parent and retirement deductions, have also been slightly increased. A key change for small businesses is that the government has raised the VAT registration threshold from €35,000 to €55,000. This means that companies with annual revenues below €55,000 are not required to register or pay VAT.

3. Austria's Cryptocurrency Tax System

In January 2022, Austria amended the Income Tax Act (EStG) by updating Section 27b related to capital income, establishing a systematic tax framework for cryptocurrencies. Starting from March 1, 2022, Austria underwent an Eco-Social Tax Reform influenced by the European Environment Agency (EEA), which had some impact on its cryptocurrency tax policy.

As one of the founding countries of the OECD, Austria is also required to comply with the OECD Model Tax Convention, which aims to prevent double taxation between countries, provides guidance to prevent tax evasion, and offers a standardized framework for the terms and structure of international tax agreements, helping governments coordinate and simplify cross-border tax matters and promote the exchange of tax information.

3.1 Austria's Qualitative Assessment of Cryptocurrencies

The Austrian Ministry of Finance (FMA) classifies cryptocurrencies as intangible assets rather than fiat currency. However, Austria taxes cryptocurrencies as income, governed by the Austrian Income Tax Act (EStG).

According to the Austrian Income Tax Act (EStG), cryptocurrencies are viewed as a digital form of value expression, whose value is not determined or guaranteed by a central bank or other state institutions, does not necessarily correlate with any fiat currency, and does not have the legal status of currency or legal tender. However, they can be accepted by individuals or legal entities as a medium of exchange and can be transferred, stored, or traded electronically. Additionally, claims arising from the transfer of cryptocurrencies are also considered cryptocurrencies.

This definition covers publicly issued cryptocurrencies accepted as a medium of exchange, as well as stablecoins, but does not apply to non-fungible tokens (NFTs) or asset tokens (tokens backed by actual assets). The taxation of these products is based on their specific nature and follows general tax law rules.

3.2 Specific Cryptocurrency Tax System

3.2.1 Income Tax on Cryptocurrencies

According to Section 27a, Paragraph 1 of the Austrian Income Tax Act (EStG), income from holding cryptocurrencies is subject to a special tax rate of 27.5% and is not included in the progressive tax rate range of other income. Income generated from cryptocurrencies can be divided into current income and realized gains, which will be detailed below regarding their definitions and specific taxable behaviors.

3.2.1.1 Current Income

Current income generated from holding cryptocurrency assets refers to the compensation or earnings obtained through the transfer or trading of cryptocurrencies. Taxable behaviors include interest earned from lending cryptocurrencies, providing liquidity in decentralized finance processes (DeFi), participating in liquidity mining, operating master nodes, and income derived from transaction fees, regardless of whether new coins are generated, all of which are considered current income for tax purposes. Behaviors that may be confused but are not taxable include staking, which only involves transaction validation without obtaining direct compensation, transferring cryptocurrencies to others without charging transaction fees (i.e., airdrops) and the income generated from them (bounties), and cryptocurrencies generated from hard forks. Since the default cost of obtaining the above situations is zero, they are not taxed, but their full value will be taxed upon future sale.

It is worth noting that since mining income does not involve income obtained through capital (Article 11 of the OECD Model Tax Convention) and does not fall under commercial activities (Article 7 of the OECD Model Tax Convention), it is classified as "other income" under Article 21 of the OECD Model Tax Convention for non-commercial enterprises. The taxpayer's country of residence has the primary right to tax this income. However, from the perspective of Austrian law, Section 27b, Paragraph 2, Item 2 defines cryptocurrencies obtained through technical processes as current income.

3.2.1.2 Realized Gains

Taxation on realized gains from the holding value of cryptocurrencies includes taxable actions such as exchanging cryptocurrencies for euros or other fiat currencies and using cryptocurrencies to pay for goods or services. The calculation of income is based on the sale proceeds minus the purchase cost, where the sale price is assumed to be the market fair value. Transaction costs (such as transaction fees and consulting fees) can be deducted from the costs, while expenses related to financial assets (such as electricity costs or hardware purchase costs) are not included in the costs unless the taxpayer opts for the standard taxation option. The conversion between cryptocurrencies is not considered a "disposal," and therefore is not taxed; expenses incurred from such transactions (like gas fees and platform fees) are not regarded as significant expenditures and are not included in tax deductions, meaning the original purchase cost of the cryptocurrency will carry over to the new cryptocurrency.

3.2.2 Loss Compensation

According to general Austrian tax regulations, profits and losses arising from income related to cryptocurrencies can be calculated together with profits and losses from other capital income, such as dividends or gains from the disposal of stocks.

3.2.3 Business Income

If income from cryptocurrencies is classified as business (enterprise) activity income in Austria, it must be categorized as business profit. In the cryptocurrency industry, the equipment required for mining and staking is often specialized and expensive, needing to be installed and utilized at specific locations, which typically meets the definition of a "permanent establishment." If the income generated from cryptocurrencies or the cryptocurrencies themselves belong to a permanent establishment, the contracting state where the permanent establishment is located has the primary taxing rights. The country of residence of the company usually exempts this income from taxation but still requires progressive tax rates.

In principle, the special tax rate for cryptocurrencies applies to business assets and traditional capital assets. However, if the income generated from cryptocurrencies is part of the core business of the enterprise, the special tax rate does not apply. This means that the cryptocurrency tax system does not apply to businesses engaged in cryptocurrency trading or commercial cryptocurrency mining. Income from such activities will be taxed at progressive income tax rates. Losses generated from the holding of cryptocurrencies, if part of business assets, will be treated as losses from business capital assets.

3.2.4 Capital Gains Tax (Realized Capital Gain)

After December 31, 2023, Austrian service providers will be required to pay capital gains tax on capital gains. Starting in 2025, any institution obligated to withhold capital gains tax must provide tax reports for all its cryptocurrency income (upon request from the taxpayer).

From 2023, capital gains tax (typically 27.5%) is only due when profits are made from the sale of cryptocurrencies; if a transaction results in a loss, it can also be used to offset profits from other cryptocurrencies, thereby reducing the overall tax burden. Compared to the old regulations, the new rules limit taxable events to profitable transactions rather than all transaction behaviors, while also introducing a favorable system where losses can be used for tax offsets. It should be clarified that the transactions here primarily refer to the appreciation of assets gained from the sale of cryptocurrencies, while income from mining, airdrops, and similar activities is considered active income and is not subject to capital gains tax.

3.2.5 Value-added Tax (VAT)

As a member of the European Union, Austria's cryptocurrency VAT system is based on case law from the Court of Justice of the European Union (CJEU) regarding cryptocurrencies and Bitcoin. The conversion between Bitcoin and fiat currency is not subject to VAT. Institutions providing Bitcoin or related services are treated the same as those providing fiat currency or related services for tax purposes, with the tax base determined by the value of the Bitcoin assets. Additionally, since there is no clear recipient of services in the CJEU case law, Bitcoin mining is not required to pay VAT (refer to CJEU case C-264/14, Hedqvist, October 22, 2015).

4. Cryptocurrency Regulatory System

4.1 Markets in Crypto-Assets Regulation (MiCAR)

The Markets in Crypto-Assets Regulation (MiCAR) aims to establish a unified European regulatory framework to regulate public offerings, trading access, and service provision related to cryptocurrencies within the EU, while promoting innovation, leveraging the potential of cryptocurrencies, and maintaining financial stability and investor protection.

MiCAR defines "cryptocurrency" in a technology-neutral manner as "a digital representation of value or rights that can be transferred and stored electronically using distributed ledger technology or similar technology." The regulation specifically governs the transparency and information disclosure obligations of cryptocurrency issuance and trading, the authorization requirements and ongoing supervision of cryptocurrency service providers (CASPs) and issuers, the business organization standards for cryptocurrency issuers and service providers, and the protection rules for investors and consumers during the issuance, trading, and custody of cryptocurrencies, while also setting regulations to combat market manipulation in cryptocurrency trading venues. This includes powers such as issuing directives, suspending services, and enforcing compliance requirements, as well as establishing an administrative penalty mechanism, reporting obligations, and procedural rules to ensure consistency with EU regulatory standards and directives.

On July 3, 2024, the Austrian Parliament passed the MiCAR Implementation Act (MiCA-VVG), which will take effect on July 20, 2024, designating the Austrian Financial Market Authority (FMA) as the supervisory authority, with the Austria National Bank as a partner, regulating cryptocurrency platforms operating in Austria to register and report according to MiCAR. MiCA reclassifies existing functional and payment tokens and establishes different prospectus publication requirements based on this classification.

4.1.1 Asset-Referenced Token (ART)

An ART is a cryptocurrency, distinct from an Electronic Money Token (EMT), whose value is maintained by referencing some other value, equity, or a combination thereof. (MiCAR Article 3, Paragraph 1, Item 6)

According to MiCAR Articles 16 and 20, entities intending to issue ART must complete the authorization process before issuance, and the issuer must be a legal entity established in the EU or an authorized entity. The authorization process must be initiated through a formal application (refer to MiCAR Article 18). Currently, these technical standards are still in draft form and may conclude the transition by December 31, 2025.

Additionally, the application must include a legal opinion confirming that the cryptocurrency indeed exists and falls within the definition of MiCAR, while not being classified as an Electronic Money Token (EMT). Finally, the intended issuer must submit a cryptocurrency white paper, which can only be published after approval.

4.1.2 Electronic Money Token (EMT)

The value of an Electronic Money Token is intended to be stable by anchoring to the value of a specific official currency, and can be viewed as a stablecoin pegged to a single official currency (such as the euro or dollar), specifically defined and regulated under MiCAR.

According to MiCAR Article 81, Paragraph 1, only credit institutions or electronic money institutions can issue Electronic Money Tokens (EMT). Additionally, since EMT is legally classified as electronic money, Chapters 2 and 3 of the Electronic Money Directive (EMD) must also be complied with. Compared to ART, MiCAR does not stipulate an authorization process for EMT issuers, who only need to notify the Financial Market Authority (FMA) and publish a white paper.

4.1.3 Other Cryptocurrencies

Utility tokens and Bitcoin, which are neither Asset-Referenced Tokens (ART) nor Electronic Money Tokens (EMT), and do not fall within the excluded categories of MiCAR, do not require issuance licenses but must publish a white paper and comply with obligations such as fair marketing, anti-fraud, and information disclosure.

4.2 Anti-Money Laundering Act (AML)

One of the core objectives of Austria's financial sector is to prevent the financial market and financial system from being used to conceal or transfer assets of illegal origin and to fund terrorist activities. Therefore, the Austrian government requires financial market participants to take preventive measures (know your customer, KYC, and transparent cash flow) to ensure this goal is achieved.

Certain business activities related to cryptocurrencies may be subject to money transmission laws. If cryptocurrencies are used as a means of payment and are designed for payments between third parties, and the network has a broad geographical coverage, variety of goods/services, or number of recipients, it may trigger licensing requirements. Additionally, if operations are conducted in accounts related to currency, payment instruments, or means of payment, the entities holding these accounts may need to obtain a payment service provider (PSP) license.

Engaging in the following activities: custodial services for clients holding, storing, and transferring cryptocurrency private keys (custodial wallet services), exchange services between cryptocurrencies and fiat currencies, exchange services between cryptocurrencies, transfer services for cryptocurrencies, and providing financial services for the issuance and sale of cryptocurrencies; all require registration with the FMA as virtual asset service providers (VASPs) in Austria and compliance with anti-money laundering (AML), KYC, and customer due diligence obligations.

4.3 Cryptocurrency Taxation Regulatory Scope

In line with the Eco-Social Tax Reform, the requirement for taxation on income from cryptocurrency holdings took effect on March 1, 2022, applicable to cryptocurrencies acquired after February 28, 2021 (referred to as "new assets"). Cryptocurrencies acquired before this date are considered existing holdings and are not subject to the new tax arrangements. These assets will continue to be taxed as economic property according to the regulations prior to the environmental tax reform.

However, if cryptocurrencies acquired before March 1, 2021 (old assets) are used to generate current income from cryptocurrencies, or if cryptocurrencies are obtained as part of staking, airdrops, bounties, or hard forks, the new tax regulations under Section 27b of the EStG will apply to such acquisitions, and any cryptocurrencies obtained from such activities will be considered new assets.

4.4 International Regulation and Cooperation on Cryptocurrencies

At the international cooperation level, the OECD provides Austria with a framework for international tax coordination, guiding how cryptocurrencies are allocated for taxation through the Model Tax Convention. For example, mining income is taxed as "other income" by the taxpayer's country of residence, while for business income, the country of residence of the company has the primary right to tax these business profits unless the activities are conducted through a permanent establishment (as defined in Article 5 of the OECD Model Tax Convention) in another contracting state.

Currently, the OECD is also promoting the implementation of tax transparency standards for cryptocurrencies (Crypto-Asset Reporting Framework, CARF), aiming to establish a globally unified automatic information exchange mechanism, with Austria required to comply with the Automatic Exchange of Information (AEOI) standards.

Additionally, to prevent double taxation, Austria has signed double tax conventions (DTC) based on OECD guidelines with multiple countries to coordinate international taxation, preventing repeated taxation due to residents having tax obligations in multiple countries and clarifying tax rights between countries. This also relies on close international information sharing and cooperation, which can also serve anti-money laundering purposes.

As a member of the Financial Action Task Force (FATF), Austria's anti-money laundering standards are heavily influenced by the FATF's "Guidance on Virtual Assets and VASPs," which imposes compliance requirements on crypto assets and crypto service providers (exchanges, wallets, etc.), requiring crypto platforms to implement KYC and customer reviews, and report suspicious transactions to the Austrian Financial Intelligence Unit (Austrian FIU).

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。