Austrian Tax Law Treats Stablecoin Swaps as Crypto-to-Crypto Transactions

Austrian tax law treats swapping Bitcoin for stablecoins as a crypto-to-crypto transaction if the received stablecoin qualifies as a cryptocurrency. This means that the direct swap is usually tax-neutral, and the historical acquisition costs of the Bitcoin carry over to the stablecoins.

However, selling the stablecoins for euros or US dollars later on triggers taxation, with gains from taxable crypto assets held privately subject to a 27.5% special tax rate. This rule applies particularly to new assets acquired after February 28, 2021, which are considered so-called new assets.

According to the Austrian finance ministry, stablecoins can fall under the cryptocurrency definition in Section 27b of the Income Tax Act if they meet certain criteria, such as being accepted as a means of exchange and capable of electronic transfer, storage, and trading. For instance, Tether is explicitly mentioned as an example of a stablecoin that meets these conditions.

Not every stablecoin automatically enjoys this tax treatment, however. The assessment depends on the specific structure of the token, and certain asset tokens and NFTs fall outside the cryptocurrency definition. Tokens like those on money market funds or bonds, gold-backed or commodity-backed tokens, synthetic tokens with a derivative structure, platform balances that cannot be transferred freely, and stablecoins with an unusual legal construction may require closer review.