The Republic of Austria is a landlocked country located in Central Europe. It operates under a parliamentary system and is a representative democracy composed of nine federal states. Austria joined the European Union in 1995 and is also one of the founding members of the OECD. Among EU countries, Austria was one of the earliest to undertake reforms of its crypto tax regime. This article provides a detailed overview of Austria’s cryptocurrency taxation policies and the latest regulatory developments.
2.1 Overview
The Federal Ministry of Finance (FMA) is the competent authority in charge of enforcing all fiscal laws and collecting taxes in Austria. This ministry allocates tax revenue to public and social services to improve residents' quality of life. Austria’s tax year follows the calendar year (January 1 to December 31) and applies a progressive tax system based on income brackets. The personal income tax rates range from 20% to 55%, placing Austria among the countries with higher tax rates in Europe.
Under Austrian tax law, both residents and non-residents may be subject to taxation. A person is considered a tax resident if they live in Austria and stay more than 180 days in the country each year, regardless of nationality. Tax residents are subject to taxation on their worldwide income, including income from employment, business, investments, and property. Non-residents are taxed only on income sourced within Austria, referred to as "limited tax liability." However, if a non-resident earns most of their income in Austria (e.g., over 90% of total income), they may be classified as having "unlimited tax liability" and taxed on their global income. Taxpayers who are not Austrian nationals but are required to pay taxes to the Austrian government may benefit from double tax treaties (DTA) based on the OECD Model Tax Convention, which prevents double taxation on the same income.
According to the 2024 Global Report on Base Erosion and Profit Shifting, Austria loses around EUR 130 million annually due to cross-border tax abuse, amounting to approximately 1% of its fiscal revenue. The country has increased the investigation period and penalties for serious tax evasion cases, with fines starting at EUR 150,000. To prevent tax avoidance and evasion, Austria participates in the Automatic Exchange of Information (AEOI) system, which facilitates information sharing between tax authorities in different countries and aids in monitoring tax violations. Domestically, an individual’s social security number (Sozialversicherungsnummer) serves as their tax identification number, typically registered by the employer. Self-employed individuals can obtain this number through the Social Insurance Institution for the Self-Employed (SVS). Taxpayers also need a personal tax number (ATIN), which is issued upon registering a new address or with the tax office. Companies must obtain a VAT identification number (UID Number) when registering for value-added tax purposes..
2.2 Personal Income Tax
Austria imposes personal income tax on global income of residents and Austrian-sourced income of non-residents. The progressive tax rates are structured into six brackets: 20%, 30%, 41%, 48%, 50%, and 55%. Income below EUR 13,308 is tax-exempt. The top marginal rate of 55% is the third highest in Europe, following Denmark (55.9%) and France (55.4%), while the EU average is approximately 42.8%.
2.3 Corporate Income Tax
Since 2023, the corporate tax rate in Austria has been set at a flat 24%, comparable to Spain and Belgium (both 25%), higher than Singapore (17%), and lower than South Africa (27%) and BRICS countries (27.2%). When companies distribute profits, a withholding tax of 23% applies to corporate shareholders, and 27.5% applies to other beneficiaries..
2.4 Value-Added Tax (VAT)
Austria’s standard VAT rate is 20%, reduced to 19% in Jungholz and Mittelberg. This is slightly below the EU average of 21.6%. Lower rates of 10% apply to items such as books and food, and a 13% rate applies to cultural activities, wine, and domestic flights. Certain exports, cross-border services, and sectors such as healthcare, education, and finance are VAT-exempt..
2.5 Other Taxes
Beyond the above taxes, Austria levies real estate and property transfer taxes on individuals. Companies must pay municipal taxes to local authorities where they maintain a permanent establishment, with payroll withholding for employees and multiple levels of social insurance contributions shared between employers and employees. In support of environmental protection, Austria imposes various green taxes, including vehicle tax, one-time registration tax (based on vehicle emissions), carbon tax, and a digital services tax.
Uniquely, Austria abolished its formal inheritance and gift tax in 2008. Gifts below reporting thresholds are exempt from declaration: EUR 50,000 for gifts from direct relatives or partners, EUR 15,000 from others, and under EUR 1,000 for occasional gifts of art or household items. In contrast, other European countries maintain significant inheritance taxes—for example, the UK levies 40% on estates over GBP 325,000, and France and Germany impose rates ranging from 20% to 45%..
2.6 Recent Reforms
In 2025, to counter inflation, the Austrian government increased income tax thresholds. Except for the 55% rate on income above EUR 1 million, all other brackets saw thresholds rise by about 4%. This means individuals earning more than EUR 13,308 annually must pay income tax. Additionally, deductions such as those for single parents and retirees were slightly raised. A key change for small businesses is the increase of the VAT registration threshold from EUR 35,000 to EUR 55,000, exempting companies with annual turnover below that level from VAT registration and payment obligations.
In January 2022, Austria amended its Income Tax Act (EStG) by updating Section 27b, which relates to capital income, thereby establishing a systematic tax framework for cryptocurrencies. Starting from March 1, 2022, Austria implemented an Eco-Social Tax Reform, influenced by the European Environment Agency (EEA), which also had an impact on the country’s crypto taxation policy.
As a founding member of the Organisation for Economic Co-operation and Development (OECD), Austria is also obligated to follow the OECD Model Tax Convention. This framework aims to prevent double taxation between countries, provide guidance on preventing tax avoidance, and offer standardized provisions for international tax treaties. It helps governments coordinate and streamline cross-border tax matters and facilitates the exchange of tax-related information.
3.1 Legal Classification
The Austrian Ministry of Finance (FMA) classifies cryptocurrency as an intangible asset rather than legal tender. However, it treats income derived from cryptocurrency as taxable under the Austrian Income Tax Act (EStG).
According to the EStG, cryptocurrency is considered a digital representation of value that is not issued or guaranteed by a central bank or public authority. It is not necessarily linked to any legal currency and does not possess legal status as money or a legal means of payment. Nonetheless, it can be accepted by individuals or legal entities as a medium of exchange and can be transferred, stored, or traded electronically. Furthermore, any claims arising from the transfer of cryptocurrency are also regarded as cryptocurrency for tax purposes.
This definition covers cryptocurrencies that are publicly issued and widely accepted as a medium of exchange, including stablecoins. However, it does not extend to non-fungible tokens (NFTs) or asset-backed tokens (asset tokens supported by real-world assets). The taxation of such instruments depends on their specific characteristics and is governed by general tax rules..
3.2 Income Tax on Crypto
3.2.1 Income Tax on Cryptocurrencies
Cryptocurrency income is taxed at a flat rate of 27.5%, separate from progressive income tax rates. It falls into two categories:
-Current Income: Earnings from activities like lending cryptocurrencies, liquidity provision in decentralized finance (DeFi), liquidity mining, running master nodes, or mining. Transaction fees also count as current income.
-Realized Gains: Profits from selling cryptocurrencies for fiat or using them to buy goods and services. Taxable gains are calculated as sale proceeds minus acquisition costs.
Crypto-to-crypto trades are not taxable, and related costs (e.g., gas fees) are not deductible. Mining income is classified as "other income" under the OECD Model Tax Convention, taxable in the resident’s country.
3.2.2 Loss Offsetting
Profits and losses from cryptocurrencies can be offset against other capital income, such as dividends or stock sales.
3.2.3 Business Income
If cryptocurrency income comes from business activities (e.g., commercial mining or trading), it is taxed as business profits at progressive rates, not the 27.5% special rate. This applies when a permanent establishment is involved.
3.2.4 Capital Gains Tax
Since 2023, capital gains tax (27.5%) applies only to profits from selling cryptocurrencies. Losses can offset gains from other cryptocurrencies, reducing the tax burden. Mining or airdrop income is treated as current income, not capital gains.
3.2.5 Value-Added Tax (VAT)
Converting cryptocurrencies to fiat is VAT-exempt, as is cryptocurrency mining, based on EU Court of Justice rulings (e.g., Hedqvist case, 2015).
4.1 Markets in Crypto-Assets Regulation (MiCAR)
MiCAR, effective in Austria since July 20, 2024, creates a unified EU framework for cryptocurrency issuance, trading, and services. It defines cryptocurrencies as digital value transferable via distributed ledger technology, ensuring transparency, consumer protection, and market integrity. The FMA and Austrian National Bank oversee compliance.
-Asset-Referenced Tokens (ARTs): Cryptocurrencies pegged to assets require authorization and a whitepaper.
-Electronic Money Tokens (EMTs): Stablecoins tied to a single fiat currency, issued by credit or e-money institutions, need notification and a whitepaper.
-Other Cryptocurrencies: Utility tokens and assets like Bitcoin require a whitepaper but no authorization.
4.2 Anti-Money Laundering (AML) Regulations
Cryptocurrency service providers, such as exchanges and wallet custodians, must register with the FMA as Virtual Asset Service Providers (VASPs) and follow AML and Know Your Customer (KYC) rules.
4.3 Scope of Cryptocurrency Tax Rules
The new tax regime applies to cryptocurrencies acquired after February 28, 2021. Earlier holdings follow previous tax rules unless used to generate new income (e.g., staking or airdrops), which are then taxed as new assets.
4.4 International Cooperation
Austria follows OECD guidelines, including the Crypto-Asset Reporting Framework (CARF), and participates in AEOI to ensure tax transparency. It also adheres to Financial Action Task Force (FATF) standards, requiring cryptocurrency platforms to report suspicious transactions to the Austrian Financial Intelligence Unit.
[1] European Environmental Agency (2012), Environmental tax reform: increasing individual incomes and boosting innovation—European Environment Agency
[2] Magdalena Laas (2025, April 16), Taxesin Austria: Income tax and more. Expatica. https://www.expatica.com/at/finance/taxes/taxes-in-austria-101475/
[3] Koinly (2024), Crypto Tax Austria: Ultimate Guide 2025. Koinly. Crypto Tax Austria: Ultimate Guide 2025 | Koinly
[4] Federal Ministry Republic of Austria (2021.01), Tax Treatment of Cryptocurrencies, Tax treatment of cryptocurrencies
[5] Federal Ministry Republic of Austria (2023), Markets in Crypto-Assets Regulation, Markets in Crypto-Assets Regulation (MiCAR) - FMA Österreich
[6] Global Legal Insights (2024, October 25), Blockchain & Cryptocurrency Laws and Regulations 2025-Austria, Blockchain & Cryptocurrency Laws 2025 | Austria
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