In this article, we provide you with an overview of the Austrian tax regime for crypto assets, who is subject to this regime, and how the rules are applied on our platform.

 

The tax implications of investing in crypto assets depend on your personal tax situation. The information provided in this article is not to be considered and should not be relied upon as tax, legal, or investment advice. It does not replace advice provided by a qualified tax advisor.

 

 

 

Why does Bybit EU deduct withholding taxes for customers in Austria?

Austria has adopted a withholding tax regime for income from certain investments in crypto assets. According to Austrian tax legislation, Bybit EU is obliged to calculate and withhold taxes on income derived from crypto assets if the user is subject to unlimited tax liability in Austria (Austrian tax residents). Information on the withholding tax regime can be found here.

 

 

 

Who is subject to withholding tax in Austria?

Individuals who have a residence or habitual abode in Austria are subject to unlimited income tax in Austria and, as Austrian tax residents, subject to Austrian withholding tax on crypto assets.

• Domicile: A permanent home available for your own use under circumstances indicating that you will retain and use it, not merely on a temporary basis.

• Habitual abode: Regular and prolonged physical presence in Austria, typically for at least 6 months within a calendar year.

 

However, if your center of vital interests is outside Austria and you only maintain a secondary residence in the country — meaning the home is used for no more than 70 days per year — it may not be treated as a residence for tax purposes. If this applies to you and you confirmed it during the onboarding process on our platform, Austrian withholding tax will not be deducted.

 

 

 

How is it determined whether you are considered subject to withholding tax in Austria?

We collect information relevant to determining whether you are considered an Austrian tax resident, in line with Austrian administrative practice. The assessment is based on your nationality, Proof of Identity (POI), or Residence Country (RC) provided during the identity verification process:

• If your nationality, POI, or RC is from Austria, you will be treated as an Austrian resident and subject to withholding tax.

• If your nationality, POI, or RC is from a neighboring country (i.e., Switzerland, Liechtenstein, Germany, Czech Republic, Slovakia, Hungary, Slovenia, or Italy), you will be treated as a potential Austrian resident. In this case, you will be required to declare your tax status before using the taxable services.

• If your nationality, POI, or RC is not from any of the above-mentioned countries, you will be treated as a non-Austrian resident.

 

If your circumstances change, you can change your tax residence in your Account Info Settings.

 

 

 

Why can I not use certain services (e.g. crypto-to-fiat transactions)?

To comply with the Austrian tax framework, we are currently testing and finalizing our Tax Engine to accurately calculate and remit withholding tax for Austrian tax residents.

 

As a result, taxable services are temporarily restricted for Austrian tax residents until the Tax engine is launched. These taxable services include all products and services involving Crypto-to-Fiat conversions and Earnings. We expect the Tax Engine to go live in the coming weeks.

 

The exit tax feature of our Tax Engine is scheduled to be launched later this year. Due to its complexity, this functionality requires additional time to implement. If an exit tax event occurs before the exit tax feature is live, the relevant services mentioned above will be temporarily restricted.

 

 

 

What services are included in the taxable services?

Taxable services include all products and services that involve Crypto-to-Fiat conversions and Earnings. These include:

• One click sell (to fiat balance) 

• Convert (Crypto to Fiat)

• Spot Trading (when selling crypto for fiat in fiat trading pairs)

• Bybit Card

• Rewards Services

 

The abovementioned products will be temporarily restricted from Austrian tax residents until the Tax Engine is launched.

 

Note: In addition to the above, Spot Margin, Launchpool, and Token Splash will remain restricted for Austrian tax residents even after the Tax Engine goes live.

 

 

 

My circumstances have changed. How can I change my tax residence?

If your circumstances change, you have to update your tax residence in your Account Info Settings. Your tax residency change will be effective immediately after confirmation.

 

Changing your tax residence from another country to Austria or from Austria to another country may have withholding tax consequences (e.g. exit taxation). We therefore encourage you to seek advice from a qualified tax advisor on your personal tax situation.

 

 

 

How are crypto assets taxed in Austria?

Austria has implemented a special tax regime that applies to certain income from crypto assets. In general, capital gains and current income from crypto assets are taxed at a tax rate of 27.5%. Crypto-crypto exchanges are generally considered tax-neutral. Bybit EU is obliged to perform a calculation, withholding, and remitting of Austrian taxes to the tax authorities on your behalf. More detailed information will be shared once the tax engine is finalized and launched on Bybit EU.

 

 

 

As an Austrian tax resident, do I have tax reporting duties in Austria?

The tax consequences of your investments on our platform depend on your tax situation. We strongly recommend consulting a qualified tax advisor to ensure full compliance with your tax obligations.

 

As a general rule, for Austrian individuals, withholding tax deducted in Austria has a final effect. This means you typically do not need to report income that is already subject to Austrian withholding tax in your personal income tax return.

 

However, in some situations outlined by law, the withholding tax deducted by Bybit EU may not have a final effect—for example:

• If the acquisition cost of a sold crypto asset is unknown or incorrect

• If you relocate to or from Austria

• Or in other specific cases

 

In these situations, you may be required to declare the relevant income in your personal tax return. Please note that not all benefits or rewards earned on our platform fall within the scope of the Austrian withholding tax regime. Some of these may still be subject to income tax or other obligations, and you are solely responsible for:

• Declaring such income to the relevant authorities

• Paying any applicable taxes

 

We encourage you to seek advice from a qualified tax advisor to ensure full compliance with all filing and payment requirements.

 

 

 

Will I receive a tax report at the end of the year?

The amount of withholding tax deducted for each transaction is shown in your transaction history. Additionally, an aggregated tax reporting will be available to you on an annual basis. The annual tax reporting will be compiled after the end of each calendar year and will be available to you on the Account Overview → Tax Center after the feature is launched.

 

 

 

I moved away from Austria. Why is tax still being withheld on certain transactions?

Upon changing your tax residence from Austria to another country, we are obliged to apply the Austrian exit tax mechanism for withholding tax purposes. As such, your tax-relevant crypto holdings are considered to be realized at the fair market value upon the exit tax event. The withholding for the exit tax is not deducted immediately, but rather upon realization of the capital gain (e.g., upon conversion of crypto to Fiat). Hence, for certain positions, we must perform a deduction of withholding tax even after you have notified us about your change in your tax residency.