Bitcoin purchased before March 2021: Are sales tax-free in Austria?

Bitcoin purchased before March 2021: Sales in Austria can still be tax-free

Anyone who purchases Bitcoin before March 2021 may enjoy a significant tax advantage in Austria. Earnings from newer Bitcoin positions are typically subject to a 27.5% tax, but transition rules apply to older currencies. The key date is February 28, 2021: Cryptocurrencies purchased as of this date are usually considered old positions. Austria's cryptocurrency tax system, which takes effect from March 2022, does not automatically apply to these currencies.

Why old bitcoins can be sold duty-free in Austria

Before the cryptocurrency tax reform, bitcoins held by individuals were usually treated under speculative trading rules. Sales are taxable only if the interval between acquisition and disposal is not more than one year. Once this period is exceeded, sales are usually tax-free.

Take an example from an investor who purchased Bitcoin in 2020 and has held it to this day. The one-year speculative period applicable at that time had long expired. Therefore, sales in 2026 are in principle tax-free, even if the price of Bitcoin has increased several times since purchase.

Example:
Buy Bitcoin in 2020: 10,000 euros
Sell in 2026: 80,000 euros
Value appreciation: 70,000 euros

If these coins are indeed still private old positions and no special rules apply, the proceeds are tax exempt in Austria in principle. If the same amount of Bitcoin is purchased after February 28, 2021, the same appreciation will usually fall within the scope of the new cryptocurrency tax system, and a special tax rate of 27.5% will usually apply.

Intermediate conversions end old state

The key is the transaction record. The question is not whether investors have "invested in cryptocurrencies" since 2020, but whether the specific currencies currently being sold can still be traced back to purchases made before March 2021.

Under the old legal framework, exchanging Bitcoin for another cryptocurrency also constituted a disposal. Suppose old Bitcoin is exchanged for Ethereum in 2023. The disposal of old bitcoins can still be tax-free because the speculative period has long expired. However, the Ethereum obtained through this exchange comes from 2023, so it is a new position.

The Austrian Ministry of Finance confirmed this in a similar token exchange case in 2025: If the speculative period of old positions has expired, their hidden reserves will not be taxed, and the cryptocurrency obtained through conversion will be regarded as new positions from then on.

Therefore, an old purchase receipt alone is not enough. Investors must be able to trace the entire chain down to the currency currently held.

Old and new positions in the same wallet

The situation becomes complicated when a single wallet holds both bitcoins purchased in 2020 and currencies purchased later. Austrian cryptocurrency regulations generally allow holders to choose which units are considered sold at the time of disposal. If no selection is made, the units purchased earlier will be sold by default first.

In practice, this can make a significant difference.

An investor who holds 0.5 bitcoins purchased in 2020 and 0.5 bitcoins purchased in 2024, and then sells 0.5 bitcoins, should record which position is being disposed of. Otherwise, exchanges and investors may reach different conclusions on tax treatment.

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Pay attention to lending and other cryptocurrency income

If Bitcoin had been used to generate continued cryptocurrency income, old positions would have become more complex.

If investors use old bitcoins for borrowing after February 2022, they will already fall within the scope of the new cryptocurrency tax system in terms of the continuing income it generates. Newly acquired cryptocurrencies in this way are considered new positions. The fact that the original Bitcoin is old does not automatically extend the old status to lending rewards.

On April 28, 2026, the Federal Fiscal Court also ruled on a case of interest-bearing investment of cryptocurrencies before the new cryptocurrency tax law came into effect. The court held that the borrowing at the time was another service and not a traditional capital transfer within the meaning of Article 27, paragraph 2, of the Austrian Income Tax Act. The verdict has been appealed officially, so legal issues have not yet been finalized.

For old bitcoins with a history of borrowing, it is not advisable to claim that old positions are tax-exempt.

Documentation becomes decisive factor

Anyone planning to sell a large old position duty-free in 2026 should be able to prove that the relevant Bitcoin was purchased on February 28, 2021 at the latest, and that no new tax purchase has been made since then.

The following records are particularly important:
purchase vouchers from the original exchange,
bank transfer records for purchasing Bitcoin at the time,
wallet address and blockchain transaction records,
CSV export files from old exchange accounts,
proof of transfers between wallets,
past exchanges between cryptocurrencies,
documents of loans or other income patterns.

When old and new positions are mixed, investors should also keep track of which bitcoins are allocated for sale.

Conclusion

Anyone who purchased Bitcoin before February 28, 2021 (inclusive) and held it as a private old position can in principle still sell these currencies in Austria duty-free in 2026. The 27.5% uniform tax on new cryptocurrency gains does not automatically apply to such old positions.

Historical records determine everything. Reforms made in the middle may result in newly acquired cryptocurrency, lending rewards are considered new positions under certain conditions, and in the case of a hybrid wallet, it must be determined which units are actually sold.

So, in the event of a significant increase in value, the question is not so much the current Bitcoin price as whether old positions can still be demonstrated uninterrupted five years or more.

(As of August 11, 2026. This article does not constitute investment advice. Price and fee structures may change; please confirm terms with your provider before purchasing.)