Fintech Market Overview

This article does not constitute legal advice.

Cryptocurrencies in Austria

Fintech Software

The EU Crowdfunding Regulation has applied since 10 November 2021 and opens up new fundraising opportunities without the need for a full capital markets prospectus, including crowdfunding via a single European passport. While they are not specifically targeted at fintechs or fintech start-ups, these new opportunities will also be usable by fintechs.1

Cryptocurrencies are treated as immaterial and non-consumable assets for income tax purposes. Interest and gains resulting from cryptocurrencies and tokens are subject to capital gains tax. If held for one's private assets, gains resulting from trading cryptocurrencies are tax-free if the cryptocurrencies are held for longer than one year.1

The mining of cryptocurrencies is considered a commercial activity subject to income tax. The same applies to trading cryptocurrencies or operating a Bitcoin ATM.1

According to the Austrian Ministry of Finance, in accordance with Case C-254/14 of the European Court of Justice (Hedqvist), exchanging fiat currency (e.g., the euro) against cryptocurrencies is not subject to VAT. The same applies to cryptocurrency mining.1

If goods and services are delivered in exchange for Bitcoin or other cryptocurrencies, the goods and services are taxed the same way as payment effected in fiat currency (e.g., the euro). The amount of tax is calculated in accordance with the value of the cryptocurrency at the time of the exchange.1

Virtual currencies in Austria

Fintech in Austria

Fintech in other countries

Let's introduce you

Austrian Fintech Lawyers

Silvia Calls

Silvia Calls

We work for international SMEs, startups and Telco's

Kristina Berkes

Kristina Berkes

Participation as a lawyer at investment venture funds, leading venture M&A deals in IT, supporting iGaming and business assets

Denis Polyakov

Denis Polyakov

Comprehensive legal services for businesses on corporate, tax law, cryptocurrency legislation, investment activities

  1. https://thelawreviews.co.uk/title/the-financial-technology-law-review/austria
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