Austria's Crypto Exchanges Now Withhold 27.5% Capital Gains Tax

The Austrian government has introduced a new tax regime for cryptocurrency gains, which requires crypto service providers to withhold 27.5% of capital gains on certain transactions.

This means that when an investor sells Bitcoin through an Austrian exchange, the provider will automatically calculate and deduct the capital gains tax, paying it directly to the tax office.

The new regime applies to cryptocurrencies acquired after February 28, 2021, which are considered 'new holdings' and subject to the special tax rate of 27.5%. For legacy holdings, acquired before this date, the earlier tax rules still apply.

For a sale to trigger automatic withholding, the provider must have complete acquisition costs and a traceable transaction history. If these details are missing, the withholding may deviate from the actual tax result.