By
June 2, 2025
Austria Introduces Revised Cryptocurrency Taxation Policies in 2025
Austria has implemented a series of updated tax regulations targeting cryptocurrency transactions, signaling a more structured and investor-friendly approach to digital asset taxation. These changes aim to align the treatment of crypto assets with traditional financial instruments while providing clarity and simplicity for individual and institutional investors.
Under the new legislation, Austria now applies a flat 27.5% capital gains tax on profits from cryptocurrency transactions. This rate mirrors the tax applied to stocks and other capital market instruments, integrating digital assets more firmly into the country’s broader financial system.
The revised tax rate applies to all cryptocurrencies acquired after February 28, 2021, regardless of the holding period. This means that both short-term and long-term gains from trading Bitcoin, Ethereum, and other digital currencies are taxed uniformly.
For investors who acquired crypto assets before February 28, 2021, Austria has introduced a grandfathering clause. These holdings are classified as “legacy assets” and may benefit from tax exemptions if certain conditions are met, particularly if they were held for more than one year prior to the sale. This provision rewards long-term investors and encourages responsible asset management.
The Austrian Ministry of Finance has also streamlined tax reporting procedures for crypto transactions. Individuals must declare profits from crypto trading as part of their annual income tax return. Major exchanges operating within Austria and the European Economic Area (EEA) are expected to comply with standardized reporting formats, further easing the burden on individual taxpayers.
Additionally, crypto-to-crypto transactions and the use of crypto for payments are also subject to taxation if a gain is realized at the point of exchange or use.
Income earned through mining, staking, or providing liquidity services is considered active income and may be taxed under income tax brackets ranging from 20% to 55%, depending on the total income of the taxpayer. This treatment ensures consistent tax handling across both passive and active income sources in the digital asset space.
These revised policies are part of Austria’s broader effort to establish itself as a secure and innovative destination for cryptocurrency investment. Alongside the implementation of the EU’s Markets in Crypto-Assets (MiCA) regulation and the approval of major exchanges like Bybit to operate within its borders, Austria is rapidly becoming a hub for responsible crypto adoption in Europe.
.png)
Simple. Stressfree. Payments
.svg)
.png)