Let's dive into the world of crypto taxes in Austria! New regulations on the taxation of crypto came into force on March 1, 2022. Starting from January 1, 2024 Bitpanda will launch a streamlined process that’s designed to calculate and withhold crypto taxes for you, fully compliant with new Austrian tax regulations.
In this article, we'll give you a quick rundown of these changes, who they apply to, and how Bitpanda aims to simplify your crypto tax journey starting from January 1, 2024.
Why is Bitpanda withholding taxes for users in Austria?
Austria's new crypto tax regulations classify crypto holdings as “income from capital investments” and will be taxed at the special rate of 27.5%. These regulations apply if you regularly live in Austria or have your primary residence there, regardless of your nationality.
What does it mean to have a permanent home or regularly live in Austria?
If you have a permanent home (primary home) or regularly live in Austria, you are considered taxable in Austria, and we will withhold taxes for you. If you regularly live in Austria, which means you stay in Austria for more than six months a year, you are also taxable in Austria.
If you just have a second home in Austria that you use for not more than 70 days per year, we will not withhold taxes for you.
What if I have an Austrian address in my Bitpanda account but moved to another country?
Please take a look at our Address change article for instructions on updating your address.
What if I bought crypto before 1 March 2021 but deposited it to Bitpanda after 1 March 2021?
If you bought crypto assets before 1.3.2021, they are no longer considered taxable under the Austrian crypto withholding tax regime, meaning Bitpanda will not withhold any taxes.
When clicking on the crypto deposit, simply select “Bought before March 2021” and confirm it. You’re done!
What if I bought crypto starting 1 March 2021 and deposited it to Bitpanda?
If you have previously deposited crypto to Bitpanda, which was bought starting 1 March 2021, and wish to sell these crypto assets at a later stage, we need to know the date and price you bought the assets to calculate and withhold the correct tax amount.
What if I bought my crypto asset in batches, on different dates?
If you bought an asset on different dates and for different prices, please provide the timeframe in which you bought the crypto asset and add up the prices you paid for these assets to have an initial investment amount. We will internally cross-check this information with past prices on the provided date range and validate it.
What if I bought crypto in batches, parts of it before 1 March 2021 and parts of it starting 1 March 2021, and later deposited it to Bitpanda?
- Select the respective crypto deposit in your list of crypto deposits
- Click on “Provide date and investment amount”
- If you bought a part of the asset before 1 March 2021, please split the amount and select “Bought before March 2021”
- You will now be shown the remaining amount for which you can provide the buy date and price. If you don’t have this information, you can select “I don’t know the date or price.”
Please be aware that this cannot be changed or cancelled later and will result in Bitpanda assuming a 50% capital gain for calculating your taxes and withholding 27.5% of that assumed capital gain.
What happens if I cannot find any information about the buy date and price?
If you do not have this information, you can agree to the lump sum taxation. Bitpanda must assume 50% of sales proceeds are capital gains and therefore withhold 27.5% on that assumed capital gain.
What is a tax-free swap? Why do you ask me if I have previously swapped my crypto?
A tax-free swap is a swap from one crypto asset, which was bought after 1 March 2021, to another crypto asset which took place starting 1 March 2022, based on new regulations. If you have previously swapped crypto to crypto, please indicate this, if asked, when declaring your crypto deposits. Bitpanda must validate the data you have provided.
What happens when I spend crypto with my Bitpanda Card?
On top of the amount you pay at the store, Bitpanda will deduct an amount to cover the tax of your capital gains. If Bitpanda deducts more than needed, the difference will be reimbursed later in fiat (your preferred currency). This only applies if a crypto asset is linked to your card (as main asset or fallback).
Do I have to provide my tax ID?
Bitpanda will not collect your tax identification number. We will only withhold the tax amount for you.
Will I get a tax report at the end of the year?
Yes, you can see the tax amount withheld on each transaction in your transaction history. In addition, you will be able to download your aggregated annual tax report from the app. It will be provided by 15 February 2025 at the latest.
Are staking rewards taxable on Bitpanda?
The receipt of staking rewards is not taxable but is treated as buys at a price of nil. Only once they are sold or swapped for non-crypto assets the capital gains are realised and taxed at 27.5%.
What happens if I don’t self-certify until 1.1.2024?
If you do not live in Austria but are an Austrian citizen or a citizen of a neighbouring country of Austria and don’t confirm in the Bitpanda app that you are not permanently living in Austria or have your primary residence in Austria by 1.1.2024, we must withhold taxes relating to your crypto investments from 1.1.2024 onwards.
What about airdrops?
If you received the airdrop before 1 March 2021, please declare it as “bought before March 2021” and your airdrop won’t be considered taxable.
If you received the airdrop after 1 March 2021, please tell us the buy date (date received) and choose 0.00 as initial investment amount. If you decide to sell this airdrop after 1.1.2024, we will withhold taxes on this transaction.
What if someone gifted me crypto assets?
If you were gifted crypto assets you will need to provide the data of the person who gifted the asset to you:
- If the gifted asset was bought before 1 March 2021, please declare it as “bought before March 2021” and these crypto assets won’t be considered taxable.
- If the gifted crypto asset was bought after 1 March 2021, please tell us the buy date and the initial investment of the person who gifted it to you.
- If you decide to sell this crypto asset after 1.1.2024, we will withhold taxes on this transaction.
- If you do not have any information on the gifted crypto asset we will have to apply the lump-sum taxation at an assumed capital gain of 50% once you sell the asset.