FAQ on withholding taxes for Austrian customers engaged in Crypto Trading

N26 Crypto is powered by Bitpanda GmbH (FN423018k), licensed by the Austrian Financial Market Authority (FMA) and located at Stella-Klein-Löw-Weg 17, 1020 Vienna, Austria.

The following statements do not constitute investment advice or any other advice on financial services, financial instruments, financial products or digital assets. They are intended to provide general information. The following statements do not constitute an offer to conclude a contract for the purchase or sale of financial instruments and financial products or an invitation to submit such an offer and to buy or sell any particular digital asset.

The market for crypto assets constitutes a high risk. Crypto assets are subject to high fluctuations in value — declines in value or a complete loss of the money spent are possible at any time. Past performance is not a reliable indicator of future performance.

Navigating taxes can be complicated and take up time that could be spent building a thriving investment portfolio. That’s why we have partnered with Bitpanda, to build a streamlined process for anyone affected by the new regulations. It's designed to be compliant with new Austrian tax regulations, while also helping you maximise your potential returns and future growth.

In accordance with this tax reform and in strict adherence with Austrian federal legislation, from January 1st, 2024, Bitpanda will automatically withhold taxes for Austrian customers on gains generated from crypto.

Austria's new crypto tax regulations (new tab) have classified crypto holdings as “income from capital investments” and will be taxed at the special rate of 27.5%. These regulations apply if you regularly live in Austria or have your primary residence there, this is regardless of your nationality.

If you have a permanent residence (primary residence) or regularly live in Austria, you are considered taxable in Austria, and our partner Bitpanda will withhold taxes for you. If you reside in Austria for more than six months annually, indicating habitual residency. You are also subject to taxation in Austria if you own a secondary residence in Austria that you use for not more than 70 days per year, Bitpanda will not withhold taxes for you in this case.

From January 1st, 2024, mandatory withholding applies to all crypto assets available for trading.

Taxable events include income generated from selling crypto which was bought after March 1st 2021. Our partner Bitpanda has started withholding taxes from January 1st 2024 for all taxable events which are subjected to taxation at a rate of 27.5%. Crypto-to-crypto swaps are not taxable.

Our partner Bitpanda will calculate the amount of tax to be withheld on any applicable transaction. Bitpanda will only withhold the tax amount and remit this amount to the Austrian tax authorities. Bitpanda will not report any individual customer-related tax information.

We already have your Tax ID. Our partner Bitpanda will support and process the withholding of the tax amount automatically for you.

Yes, you can see the tax amount withheld on each transaction in your transaction history. In addition, you will be able to download your aggregated annual tax report from the app in due time.

When you trade crypto, any gains or losses you make within the year are automatically netted (or balanced) against each other. Here’s how it works:

If you face a loss first, and then make a profit later in the year, Bitpanda will subtract that loss from the profit before applying any tax.

If you make a profit first and then have a loss, you might get a tax refund, but the refund is capped at 27.5% of the loss.

Remember, this system only applies to Crypto trades. If you had gains or losses with other assets, you might need to handle them separately on your tax return.