Austrian Tax Rules for Gifting Bitcoin to Children

Gifting Bitcoin to children in Austria is generally possible without triggering income tax on price gains. The country's gift notification rules exempt gifts between relatives from reporting obligations as long as their total value within a year doesn't exceed 50,000 euros. This threshold was not exceeded by a parent gifting 30,000 euros' worth of Bitcoin to their child, but it would be if another 25,000 euros were gifted later in the same period.

When gifting Bitcoin, parents should document the date and time of transfer, the amount transferred, the euro price used, the price source, wallet addresses, and transaction ID. This data can help demonstrate the origin of the Bitcoin to the tax office.

A genuine gift does not reset the child's acquisition costs, which remain tied to the parent's original purchase date and cost basis. For example, if a parent bought Bitcoin for 10,000 euros and gifted it to their child when its value was 30,000 euros, the child would continue to use the 10,000 euro tax base value upon selling the coins.