1. How Are Crypto Sales Taxed in Austria?
In Austria, profits from the sale of cryptocurrencies are treated as capital gains and are subject to a special tax rate of 27.5%. However, tax liability only arises when cryptocurrencies are exchanged for fiat currency (e.g., Euro) or other assets such as NFTs. The mere exchange of one cryptocurrency for another remains tax-free.
Income from realized capital gains can be offset against other income from capital assets. For example, it is possible to offset profits from cryptocurrencies with losses from stocks within a calendar year. However, losses from cryptocurrencies cannot be carried forward to future years.
Since January 1, 2023, the average cost per asset is calculated. For this reason, we have developed a new method, the ATM method. This is a dual procedure in which old holdings are treated according to the FIFO method, while newer holdings are subject to the average cost per wallet. This method complies with the tax regulations in Austria that apply from 2023.
Example for Tax Calculation - FIFO method
A buys 1 BTC for €1,000 on February 1, 2024. On June 10, 2024, A sells this 1 BTC for €2,000. The realized profit from the increase in value of €1,000 (€2,000 - €1,000) is taxable at the special tax rate of 27.5%.
Profits and losses from trading cryptocurrencies are shown in our tax report under "1.1. Taxable income from the purchase and sale of cryptocurrencies according to § 27b Abs 3 EStG”.
Example for Tax Calculation - ATM Method
A buys 1 BTC for €300 on 01.09.2022 and another BTC for €600 on 01.02.2023. The average cost basis is €450 per BTC. On 01.09.2024, 1 BTC is sold for €5,000, resulting in a profit of €4,550.
Profits and losses from trading cryptocurrencies are shown in our tax report under "1.1. Taxable income from the purchase and sale of cryptocurrencies according to § 27b Abs 3 EStG”.
Example for Tax Calculation - Old inventory
A buys 1 BTC for €100 on 05.01.2021 and another BTC for €300 on 05.02.2021. According to the inventory rules, the first BTC purchased is recorded using the FIFO method. If A sells the first BTC on 20.11.2024 for €3000 and buys two more BTC for €2500 each a month later, A now owns 3 BTC. With the transactions indicated, the new cost basis per unit is €1,766.67.
The profit from the sale of existing assets in the amount of €2,900 (€3000 - €100) is shown in our tax report under "3.1. Non-taxable income from speculative transactions with cryptocurrencies and NFTs".
2. Income from Speculative Transactions with NFTs
In Austria, profits from trading NFTs are considered income from speculative transactions. The new legislation, which came into force on March 1, 2022, did not change the taxation of NFTs. If the holding period is less than one year, the profits made are subject to income tax at the personal income tax rate according to § 31 EStG.
Example for Tax Calculation of NFT Sales
A buys a Bored Ape on OpenSea on March 20, 2024, for €2,000. On July 20, 2024, he sells the Bored Ape for €4,000. The speculation period of one year has not been met. The speculative profit of €2,000 is taxable at the personal income tax rate. If A had waited a year to sell, his speculative profit would have been tax-free.
How NFT Sales are displayed
The purchase and sale are entered in CoinTracking with the transaction type "Trade". The NFTs can be classified more precisely in the CoinTracking NFT Center.
Profits and losses from trading NFTs with a holding period of less than one year are shown in the tax report under "1.3. Taxable income from speculative transactions with NFTs according to § 31 EStG".
3. Exchange of Cryptocurrencies
The trade of crypto to crypto is not a taxable transaction in Austria. Only when the traded cryptocurrency is traded back for FIAT or NFT is this transaction taxable. The acquisition costs of the original crypto purchase are passed on until the final sale.
Example for Tax Calculation When Exchanging Cryptocurrencies
On March 1, 2024, Investor B acquires 1 BTC for €2,000. On June 1, 2024, Investor B exchanges this BTC for 10 ETH. This crypto-to-crypto exchange is not a taxable transaction under Austrian tax law. On October 1, 2024, Investor B exchanges the 10 ETH for €5,000, resulting in a taxable capital gain of €3,000 (€5,000 sale value minus €2,000 original acquisition cost). This realized capital gain is subject to a tax rate of 27.5%.
How the Exchange is displayed
The purchase and sale are entered with the transaction type "Trade". Profits and losses from trading cryptocurrencies are shown in the tax report under "1.1. Taxable income from the purchase and sale of cryptocurrencies according to § 27b Abs 3 EStG”.
4. Purchase of NFTs with crypto
Anyone who buys NFTs with crypto must pay taxes. The profit from the realized increase in value of the cryptocurrency given is taxable at the special tax rate of 27.5%. The market value of the cryptocurrencies given represents the acquisition costs of the newly purchased NFT. The NFT has a speculation period of one year. If the NFT is sold after one year, the profits from the sale are tax-free.
Example for Tax Calculation of the NFT Purchase
On August 1, 2024, instead of selling the ETH, A exchanges it for a Bored Ape NFT. At this point, A realizes a taxable gain of €2,000, calculated as the difference between the NFT’s acquisition value of €3,000 (market value of the ETH at the exchange date) and the original acquisition cost of €1,000 for the BTC. This NFT is subsequently sold by A on September 1, 2024, for €5,000. Since the holding period of the NFT was shorter than one year, the additional profit of €2,000 (€5,000 selling price minus €3,000 acquisition cost) qualifies as income from speculative transactions and is therefore taxable at A’s personal income tax rate.
How the purchase is displayed
The purchase and sale are entered with the transaction type "Trade". Profits and losses from trading NFTs are shown in the tax report under "1.3. Taxable income from speculative transactions with NFTs according to § 31 EStG".The NFT can be classified in the NFT Center.
5. Tax on Crypto Gifts
Basically, you don't have to pay income tax on cryptocurrency gifts. But depending on how much the gift is worth, you might need to tell the tax office about it. You have to report gifts to family members if they are worth €50,000 or more. For gifts to other people, you need to report them if they are worth €15,000 or more. This rule applies to gifts received within 5 years.
Example for Tax Calculation for Crypto Gifts
A receives 1 BTC worth €10,000 from B (not a relative) on January 1, 2024, which is sent to A's wallet. On June 1, 2024, A gets another 1 BTC worth €10,000 as a gift from B. Since the reporting limit of €15,000 within a 5-year period has been exceeded, A must report the gift. It is recommended to consult a tax advisor in this situation.
How Crypto Gifts Are Shown
For incoming crypto gifts, CoinTracking uses the transaction type "Gift / Tip".
Incoming crypto gifts are shown in the tax report under "4.1. Donations and gifts".
Tax Effects of Selling Gifted Crypto
When you sell crypto that someone gave you as a gift, you make a capital gain. You have to pay tax on this profit at a special rate of 27.5%. The cost base of the crypto from the person who gave it to you becomes your cost base.
Example of How to Calculate Tax on Selling Gifted Crypto
On June 1, 2024, A sells 1 BTC that he received from B on January 1, 2024. The original purchase price for this 1 BTC was 1,000€. The value has since increased to 3,000€ per BTC. The resulting profit of 2,000€ (3,000€ - 1,000€) is taxable at the special tax rate of 27.5%.
Profits and losses from the sale of gifts are reported in the tax report under “1.1. Taxable income from the purchase and sale of cryptocurrencies according to § 27b Abs 3 EStG”.
6. Tax on Crypto Rewards
In Austria, if you earn crypto rewards by providing a service, it is treated as ongoing income. This income is valued at the market price when you receive it and taxed at a special rate of 27.5%. The market value at the time you receive the reward also becomes the acquisition cost if you decide to sell it later.
Example of Tax Calculation for Crypto Rewards
For example, A signs up on Crypto.com on January 1, 2024, and receives 500 CRO Tokens as a welcome bonus, worth €500. This €500 is considered ongoing income and is taxed at the special rate of 27.5%.
How Crypto Rewards Are Recorded
The reward is entered in CoinTracking using the transaction type “Reward / Bonus.”
Income from rewards is listed in the tax report under 2.1. Taxable ongoing income from cryptocurrencies according to § 27b par. 2 Z 1 EStG. Other transaction types that are also listed here: Dividends, Other income, Lending, Interest, Income, Liquidity Mining and Airdrops
Tax on the Sale of Rewards
When you sell rewards and make a profit, this profit is considered capital income. The profit is taxed at a special rate of 27.5%.
Example of Tax Calculation for Selling Rewards
Person A sells 500 CRO on June 1, 2022. These coins were received as a sign-up bonus on January 1, 2022. The value of the coins has increased to €1,000. The profit is €500 (€1,000 - €500), and this amount is taxed at the special rate of 27.5%.
How the Sale of Rewards is shown
The sale is recorded with the transaction type “Trade”.
Profits and losses from trading cryptocurrencies are shown in the tax report under “1.1. Taxable income from the purchase and sale of cryptocurrencies according to § 27b Abs 3 EStG”.
7. Tax on Crypto Mining as a hobby
If mining is not a business, it's considered ongoing private income. In Austria, this crypto mining income is taxed at 27.5% of its market value when received. This value is also used as the purchase price if you sell the crypto later.
Example of Tax Calculation on Income from Mining as a hobby
A mines Bitcoin using his home PC. On January 1, 2024, he gets 1 BTC worth €1,000 as a mining reward. This mining is seen as ongoing income is taxed with 27.5%.
How Crypto Mining Is displayed
Income from mining is listed in the tax report under 2.1. Taxable ongoing income from cryptocurrencies according to § 27b par. 2 Z 1 EStG Other transaction types that are also listed here are Masternodes.
Sale of Mining Rewards (Hobby)
When you sell mining rewards as a hobby, it's not considered business income. Instead, it's treated as capital income from selling assets. You pay a special tax rate of 27.5% on the profit you make.
Example of Tax Calculation for Selling Mining Rewards (Hobby)
Let's say A sells their Mining Rewards on June 1, 2024. They got these rewards on January 1, 2024. The value of 1 Bitcoin has gone up to 1,000€. The profit is 1,000€ (1,000€ - 500€). This profit is taxed at 27.5%.
How the Sale of Mining Rewards (Hobby) is reported
The sale is added to CoinTracking as a "Trade" transaction.
CoinTracking shows profits and losses from cryptocurrency trading in the tax report under “1.1. Taxable income from the purchase and sale of cryptocurrencies according to § 27b Abs 3 EStG”.
Tax on income from running a masternode
If running a masternode is not a business, the income is treated as regular income. This income is valued at the market price when received and taxed at a special rate of 27.5%. This value is also used as the purchase price if you sell it later.
Example of how masternodes are taxed
A runs a masternode on his home computer. On March 1, 2024, he gets 0.5 ETH worth €500 as a reward. This reward is taxed at the special rate of 27.5%.
How income from running a masternode is displayed
Income from running a masternode is entered with the transaction type “Masternode”. Income from masternodes is listed in the tax report under 2.2. Taxable ongoing income from transaction processing services according § 27b par. 2 Z 2 EStG. Other transaction types that are also listed here: Mining (non-commercial)
Selling Rewards from Running a Masternode
The sale of rewards, if not considered income from a business, is treated as capital income. These profits are taxed at a special rate of 27.5%.
Example for Selling Masternode Rewards
A sells his rewards from March 1, 2024, on June 1, 2024. The market value of 0.5 ETH has gone up to €1,000. The profit of €500 (€1,000 - €500) is taxed and has a special tax rate of 27.5%.
How the sale of master rewards is displayed
The sale is recorded with the transaction type "Trade".
Profits and losses from trading cryptocurrencies are reported in CoinTracking in the tax report under “1.1. Taxable income from the purchase and sale of cryptocurrencies according to § 27b Abs 3 EStG”.
9. Tax on Income from Minting
If the minting is not a business, it's seen as personal income. This income is valued at the market price when you receive it. You pay a special tax of 27.5% on this value. If you sell later, this same value is used as the purchase price.
Example of the tax calculation for minting
A mints ETH worth €1000 on March 1, 2024. This action is taxed at a special rate of 27.5%.
How Income from Minting is Displayed
When you mint a token or NFT, you record it as a "Minting" transaction.
Minting is considered a commercial activity if it meets the definition of a business according to § 23 of the German Income Tax Act. This is especially true if the operator meets this definition due to their legal form or because of an independent, sustainable, and profit-oriented activity in general economic transactions.
If commercial profits are determined through balance sheets and profit and loss accounts, the "mined" NFTs can be recorded as assets. They can be listed under financial assets in fixed assets or under other assets in current assets. The initial valuation is based on the acquisition costs, which is the market value at the time of minting, plus any related costs.
If commercial profits are determined through a surplus calculation, the "mined" NFTs should be listed as operating income according to § 4 paragraph 3 of the Income Tax Act, minus any related costs, as minting tax.
Sale of Minted Coins or NFTs (Commercial)
If the minted coins/NFTs are sold, these must also be shown in the respective profit determination (balance sheet and profit and loss account/surplus calculation).
Crypto Tax on the Sale of Minted Coins or NFTs (Private)
Income from trading NFTs falls under income from speculative transactions. If the speculation period of one year is not met, the profits are to be taxed at the personal tax rate of the taxpayer. Income from trading cryptocurrencies falls under capital income.
Example for the tax calculation for the sale of minted coins
A sells his ETH from March 1, 2024 on June 1, 2024. The market value has risen to €2,000. The capital gain of €1,000 (€2,000 - €1,000) is subject to tax at the tax rate of 27.5%.
How the Sale of Minted Coins is displayed
Profits and losses from trading cryptocurrencies are reported in the tax report under “1.1. Taxable income from the purchase and sale of cryptocurrencies according to § 27b Abs 3 EStG”.
10. Crypto Mining Tax (Commercial)
Crypto mining is commercial if it meets the definition of a commercial enterprise according to § 23 EStG. This is particularly the case if the miner meets this definition by virtue of legal form or because of an independent, sustainable and profit-oriented activity in general economic transactions. If the commercial profits are determined via balance sheet and profit and loss statement, the “mined” coins can be activated in the fixed assets under the financial assets or in the current assets under the other assets. The initial valuation is carried out with the acquisition costs, i.e. the market value at the time of mining, plus the costs associated with it. If the commercial profits are determined via a surplus calculation, the “mined” coins are to be listed as operating income within the meaning of § 4 Paragraph 3 EStG, less the costs associated with it.
How Crypto Mining (Commercial) is displayed
Mining (Commercial) income can be entered in CoinTracking with the transaction type “Mining (commercial)”.
Income from mining (commercial) is reported in CoinTracking in the tax report under “4.4. Mining (commercial)”.
Crypto Tax on the Sale of Mining Rewards (Commercial)
If the "mined" coins are sold, these must also be shown in the respective profit determination (balance sheet and profit and loss account/surplus calculation).
12. Tax on Crypto Airdrops
Airdrops are received without cost, and you don’t have to pay taxes on them at the time of receipt. They are considered to have a value of €0 when received. Taxes are only due when you sell them, at which point a special tax rate of 27.5% applies to the total proceeds from the sale.
Example for the Tax Calculation for Airdrops
A registers for whitelisting using his name and address. He also follows the project on X (Twitter), joins the Discord channel, and tags three of his X friends under an invite tweet from the project. On June 1, 2024, he receives an airdrop of 10 SOL worth €1,000 in his wallet. The SOL received is tax-free at the time of receipt, with an acquisition cost of €0. The entire amount will be subject to taxation upon sale.
How Airdrops Are Displayed
Airdrops are entered with the transaction type “Airdrop”.
Airdrops are reported in the tax report under “3.2. Non-taxable income according to § 27b Abs 2 Z 2 Sentence 2 EStG” with the market value at the time of receipt. Other transaction types that are also listed here: - Staking (non-taxable) - Income (non-taxable)
Crypto Tax on the Sale of Airdrops
The money made from selling is counted as income from trading cryptocurrencies. The profit from this is taxed at a special rate of 27.5%. For airdrops, the entire amount you get from selling is taxable.
Example of Tax Calculation for the Sale of Airdrops
A sells his SOL on July 1, 2024 for €2,000. This €2,000 is considered income from realized capital gains. It is taxed at a special rate of 27.5%.
How Airdrops are displayed
The sale is entered in CoinTracking with the transaction type "Trade".
Profits and losses from trading cryptocurrencies are reported in the tax report under “1.1. Income from realized capital gains § 27b Abs. 3 EStG”.
13. Crypto Tax on staking rewards
Staking rewards are not taxed when you receive them. Their purchase cost is set at €0. You only pay tax when you sell them. At that time, a special tax rate of 27.5% applies to the whole amount.
Example for the Tax Calculation for Staking
A deposits 10,000 ADA into a staking pool. On January 1, 2024, he receives 1,000 ADA as a reward, valued at €500. A does not have to pay taxes on it upon receipt. However, taxation will apply when the ADA is later sold.
How Income from Staking is displayed
Income from staking is entered with the transaction type "Staking".
Staking rewards are reported in the tax report under 3.2. Non-taxable ongoing income according to § 27b par. 2 Z 2 S 2 EStG with the market value at the time of receipt. Other transaction types that are also listed here: Airdrops, Income (non-taxable)
Taxation of selling Staking Rewards
When you sell staking rewards, it's treated as capital gains. You pay a special tax rate of 27.5% on the profit. For staking rewards, you pay tax on the whole amount you get from selling.
Example of selling Staking Rewards
A gets 1000 ADA coins as a staking reward on January 1, 2024. These coins are worth €500 then. On May 1, 2024, A sells the 1000 ADA coins for €1500. The whole €1500 is taxable with 27,5%.
How the sale of Staking Rewards is displayed
The sale is entered as a "Trade" transaction.
Profits and losses from trading cryptocurrencies are reported in the tax report under “1.1. Taxable income from the purchase and sale of cryptocurrencies according to § 27b Abs 3 EStG”.
14. Tax on Lending Rewards
Lending rewards are payments received for participating in a lending pool. These rewards are considered ongoing income and are valued at the market price at the time of receipt. They are subject to a special tax rate of 27.5%. The market price at the time of receipt also serves as the acquisition cost if the rewards are later sold.
Example of Tax Calculation from Lending Income
Person A deposits 10,000 USDT into a lending pool. After one month, A receives 1,000 USDT as a reward, valued at €1,000. This amount is classified as ongoing income and is subject to a special tax rate of 27.5%.
How Crypto Lending is displayed
Income from lending is entered with the transaction type "Lending"
Income from lending is listed in the tax report under "2.1. Taxable ongoing income from cryptocurrencies according to § 27b par. 2 Z 1 EStG". Other transaction types that are also listed here: Dividends, Other income, Interest, Income, Liquidity Mining
Crypto Tax on Selling Lending Rewards
When you sell rewards from crypto lending, any profits are taxed as income from value appreciation. A special tax rate of 27.5% applies to this income, after deducting the acquisition cost.
Example of Tax Calculation for Selling Lending Rewards
On January 1, 2024, A gets 1,000 ADA worth €500 as lending rewards. These rewards were already taxed as other income. On June 1, 2024, A sells the 1,000 ADA for €1,500. The profit of €1,000 is taxed at the special rate of 27.5%.
The sale is entered in CoinTracking with the transaction type "Trade".
Profits and losses from trading cryptocurrencies are reported in CoinTracking in the tax report under “1.1. Taxable income from the purchase and sale of cryptocurrencies according to § 27b Abs 3 EStG”.
15. Income from Trading with Margin, Derivatives and Futures
Profits from margin trading, derivatives, and futures are earnings generated through financial instruments. These instruments, known as uncertificated derivatives, typically do not qualify for the special tax rate of 27.5%. Instead, they are taxed at the individual's personal income tax rate. In the tax report, profits and losses are recorded separately. Losses from capital gains can only be used to offset profits from capital gains.
Example of Income from Trading with Margin, Derivatives and Futures
On January 1, 2024, A receives 2 ETH worth €1,500 and deposits them as collateral. On March 2, 2024, A realizes a profit of 1 ETH worth €2,000. Since this profit comes from additional margin, it is not eligible for the special tax rate of 27.5% but is instead taxed at A's personal income tax rate.
On March 4, 2024, A purchases 1,000 USDT for €1,000 and uses it for Perpetual Futures trading. As the contract's value declines, A decides to close the trade with a loss of 300 USDT on March 31, 2024.
How Income from Trading with Margin, Derivatives and Futures is displayed
Profits and losses from trading derivatives and futures are recorded as 'Derivatives/Futures Profit' or 'Derivatives/Futures Loss.' However, profits and losses from margin trading are reported as 'Margin Profit' or 'Margin Loss'.
Profits and losses from trading margin, derivatives and futures are reported in CoinTracking in the tax report under “1.2. Taxable income from trading margin, derivatives and futures according to § 27 Z 4 EStG".
16. Payment with cryptocurrencies for goods and services
When you pay for goods or services using cryptocurrencies, tax law treats this the same as selling or exchanging the cryptocurrency. When you buy something with cryptocurrency, this creates a taxable event. The profit you made on the cryptocurrency (the increase in value since you acquired it) is considered as disposal. This capital gain is taxed at a special rate of 27.5%.
Example Tax Calculation for Crypto Payments
A buys a car worth €50,000 on May 1, 2024 and pays with 1 BTC. A bought the 1 BTC given for the purchase for €40,000 on January 1, 2024. The resulting capital gain of €10,000 of the 1 BTC is taxable with the special tax rate of 27.5%.
Payment of Goods and Services with Cryptocurrency
A sale of cryptocurrencies for goods or services that are not trackable in CoinTracking are entered with the transaction type "Other Expense".
Profits and losses that arise from the transaction type "Other Expense" are reported in CoinTracking in the tax report under "1.1. Taxable income from the purchase and sale of cryptocurrencies according to § 27b Abs 3 EStG".
17. Taxation of Crypto Gifts
Giving cryptocurrency as a gift doesn't create any tax for the person giving it away. Only the person receiving the gift needs to report it (see gifts in the form of crypto). You can't deduct the cost of the gifted crypto from profits you make on other crypto sales. Gifts you give away are shown in the tax report under "4.2. Outgoing Donations and Gifts".
18. Taxes When Cryptocurrencies are Lost or Stolen
In general, you can't use lost or stolen coins to reduce the profits from other coins for tax purposes. However, we suggest talking to a tax advisor about this. If you've lost cryptocurrencies, we report them in the tax report under section "4.3. Lost and stolen Cryptocurrency and NFT".
