The tax situation of gold in Austria compared to cryptocurrencies

Since March 2022, the tax landscape for cryptocurrencies in Austria has changed significantly, with them now being treated similarly to stocks and bonds. These adjustments mark a significant step towards clearer and fairer tax rules for digital assets.

Gold in Austria:

Unlike cryptocurrencies, gold is subject to a stable and well-established tax treatment in Austria. Gold is considered a physical precious metal and is therefore not subject to the complex regulations that affect digital assets.

Profits from the sale of gold are taxed depending on the investor's holding period. If the holding period is over one year, profits from the sale of gold are completely tax-free in Austria. This means that investors who hold gold for longer than one year do not have to pay income tax on the profits they make. For short-term profits, i.e. those realized within one year, the investor's personal income tax rate applies.

This regulation makes gold an attractive investment option for long-term investors as it is tax-advantaged while also providing physical security.

Cryptocurrencies in Austria:

The tax treatment of cryptocurrencies in Austria, on the other hand, is much more specific and is subject to fixed regulations that have been in force since March 2022. Profits from the sale of cryptocurrencies for fiat money or other assets are taxed at a special tax rate of 27.5%. Losses from cryptocurrencies can only be offset against other capital income that is also subject to this tax rate.

Since January 2023, investors can choose which cryptocurrency units they want to sell first if they have purchased multiple units of the same currency at different times. This flexibility allows for more precise tax planning and optimization.

Special rules also apply to activities such as staking, airdrops and mining. Income from these activities is only taxed when it is sold or converted into fiat money and is also subject to the special tax rate of 27.5%.

A significant step in the administration of tax collection for cryptocurrencies is the capital gains tax deduction that has been in force since 2024. This stipulates that service providers are obliged to withhold 27.5% of profits as tax and pay it to the tax office. This measure aims to promote tax honesty and ensure compliance with tax laws.

Summary:

The new tax regulations for cryptocurrencies in Austria are intended to ensure greater transparency and fairness by aligning the tax treatment of these digital assets with that of traditional financial instruments. In contrast, gold, as a physical precious metal with a holding period of over one year, remains tax-free, making it an attractive option for long-term investors seeking stability and tax advantages.