Private Bitcoin Sales in Austria Face Taxation Like Exchanges

In Austria, selling Bitcoin privately between two individuals is considered a taxable event, regardless of whether a crypto exchange is involved. This means that if you sell your Bitcoin for euros or another legal currency directly to someone else, you will still be subject to taxation.

The gain is taxed, not the sale price. To calculate the tax, you need to find the difference between the sale proceeds and the acquisition cost. For example, if you bought Bitcoin for €15,000 and later sold it directly to a private buyer for €30,000, your taxable gain would be €15,000.

For Bitcoin acquired after February 28, 2021, the special tax rate of 27.5 percent generally applies. In this case, the tax on your €15,000 gain would be approximately €4,125. It's worth noting that payment in cash or another legal currency does not make the transaction tax-free.

One key difference between a private sale and selling through an Austrian exchange is that there is no automatic withholding of capital gains tax in a direct private sale. This means you will need to determine the sale proceeds, establish the acquisition cost, calculate the gain, and account for the taxable income in your assessment.