Trading in cryptocurrencies in Austria requires having familiarity with the country’s tax & licensing regulations. What follows below is a brief review of the main requirements entrepreneurs wishing to register a cryptocurrency company in Austria will need to comply with.
A particular model associated with exchange of cryptocurrencies in the Republic of Austria determines whether or not platform operators or providers of cryptocurrency services will have to apply for an FMA-issued license.
Exchanging cryptocurrencies for fiat money in the Republic of Austria is deemed an act of selling; hence, corporations or individuals engaged in the exchange of cryptocurrencies in Austria get taxed at a rate of twenty five percent. Cryptocurrency assets held by companies of individuals as business assets get taxed at a rate of fifty five percent. No taxes are paid on proceeds from cryptoassets held as OTC, provided they’re obtained after twelve months. Profits obtained before twelve months are taxed at a rate of up to fifty five percent.
The above regime isn’t applicable if cryptoassets get ‘leased’ & interest for that is charged. If that’s the case, capital gains arising from exchange of cryptocurrencies are taxed at a rate of twenty seven point five percent. No VAT is imposed on the exchange of cryptoassets in the Republic of Austria.
Austria: Obtaining a Cryptocurrency Exchange License
There’s no particular requirements for engagement in cryptocurrency activities in the Republic of Austria; however, there may be certain restrictions on institutional investors. It may, therefore, be expedient to evaluate each cryptocurrency exchange & cryptoasset for compliance with regulatory policies applicable to this or that trading platform.
Austria: Regulation of Cryptoasset Brokerage
Whether or not cryptoasset brokerage in the Republic of Austria gets regulated is pivotal on a particular cryptoasset classification:
- if it’s transferable securities, dealers/brokers must obtain an investment or banking services license in Austria;
- if it’s commodities, dealers/brokers must abide by the Trade Act & obtain an Austrian trade license.
Also, establishing a link between loanees & potential loanees requires one to get a banking license in the Republic of Austria or obtain a business license in the Republic of Austria.
And that wraps up our brief overview. In it, we’ve focused on:
- obtaining a cryptocurrency exchange license in Austria;
- taxation of cryptocurrency companies in Austria;
- regulation of cryptoasset brokerage in Austria.
For more information on the topic of the article or consultation on conducting a cryptocurrency business in Austria, please consider contacting IQ Decision UK.