Austrian Taxman Snaps Up Bitcoin Lending Rewards

Bitcoin lending in Austria is subject to taxation as soon as the investor can dispose of the rewards, which includes receiving payments through platforms, exchanges, or DeFi protocols. These payments are considered ongoing income from cryptocurrencies and are taxed at a special rate of 27.5 percent.

The tax is calculated on the euro value at the moment of receipt, regardless of whether the coins are later sold for less than their initial value. This can create a liquidity problem for investors who see the value of their rewards drop after receiving them.

Investors should be aware that lending income may not be fully available for reinvestment due to taxes, and part of the value may need to be used to fund the tax bill.