Austrian Investors Can Offset Bitcoin Losses Against Share Gains

Austrian investors can now offset their Bitcoin losses against gains on shares, thanks to new tax regulations.

The Austrian Finance Ministry has confirmed that gains and losses from cryptocurrencies held as private assets can be balanced against certain other investment income, including capital gains on shares.

This means that if an investor realises a gain on shares worth €10,000 but also incurs a Bitcoin loss of €4,000, they can offset the two positions against each other for tax purposes. The resulting positive investment income would be €6,000, which is subject to a special tax rate of 27.5 percent.

However, the offset between crypto and share positions does not happen automatically. Investors will need to apply for the loss offset through their income tax assessment. If withholding tax has already been deducted on the gains, it can be partly refunded as a result.