Austrian Bitcoin Investors Can Offset Losses Against Taxable Income

Austrian investors can offset losses on their Bitcoin holdings against other taxable income, but there are specific conditions and limitations to consider. A realised loss occurs when an investor sells a cryptocurrency at a price below its acquisition cost, which is typically recognised for tax purposes in euros. For example, if someone bought Bitcoin for 20,000 euros and later sold it for 14,000 euros, they would have a realised loss of 6,000 euros.

This loss can be offset against other taxable income from the same calendar year, including gains on other cryptocurrencies, share gains, and dividends. However, interest on bank deposits and salary or self-employment income cannot be used to offset a Bitcoin loss. Additionally, an unused private loss cannot be carried over into the next tax year.

Automatic loss offset is permitted for cryptocurrencies held at platforms that offer this service, but it does not extend to other investments such as shares or bank deposits. If a bank has already withheld capital gains tax on share gains or dividends, a Bitcoin loss recognised later can result in a tax refund. To claim the cross-provider offset, investors must provide standardised tax reporting and supporting evidence.