Bitcoin losses are used to offset stock gains in Austria

Bitcoin losses and stock gains: How does the Austrian tax law stipulate

In Austria, if you sell Bitcoin and cause a loss and realize a gain on stocks, in principle, you can offset the two items for tax purposes. The Austrian Ministry of Finance has clearly confirmed that the gains and losses generated by cryptocurrencies held as private assets can be balanced with certain other investment income, including equity capital gains.

However, this balance between cryptocurrency and stock positions does not occur automatically. If you hold Bitcoin on a crypto platform and hold stocks on a bank, you will usually need to offset through a personal income tax return.

Bitcoin losses reduce stock gains

Simplified example:

Realized stock gains: 10,000 euros
Realized Bitcoin losses: 4,000 euros
Remaining positive investment income: 6,000 euros

If these two positions meet the offsetting conditions set out in Austria, the Bitcoin loss will reduce the tax base accordingly.

In principle, a special tax rate of 27.5% applies to taxable Bitcoin gains and capital gains from modern stock investments.

Falling prices alone is not enough

The key point is that Bitcoin losses must actually be realized. If the price in the wallet only drops from 60,000 euros to 40,000 euros, in principle, there will be no loss in the tax sense. Losses are related to loss offsetting only if a taxable realization event has occurred (such as a sale in euros). This principle also applies to stocks: price declines can in principle only be achieved through relevant tax disposals.

Banks and crypto exchanges will not automatically offset each other

In Austrian securities accounts, banks will in principle automatically offset losses. Crypto service providers can also offset losses within the cryptocurrencies they manage.

However, automatic loss offsets between cryptocurrencies and other investment income are clearly not allowed. The Ministry of Finance clearly pointed out this situation.

Example:

Bank A withheld capital gains tax on € 8,000 of equity gains.
Crypto Platform B reported a bitcoin loss of 5,000 euros.

Banks are unaware of Bitcoin losses, so part of the withholding tax will not be automatically refunded.

Investors must achieve cross-provider offsets through personal income tax returns.

Withholding taxes paid are refundable

If a bank has withheld a 27.5% capital gains tax on stock gains, subsequent accounting of Bitcoin losses may result in a tax refund.

Example:

Stock return: 10,000 euros
Withheld tax: 2,750 euros
Bitcoin loss: 4,000 euros

After the losses are offset, in principle, the remaining positive investment income is € 6,000.
Based on 27.5%, this part of the tax is: EUR 1,650

and the withheld tax of EUR 2,750 is EUR 1,100. Provided that relevant conditions are met, the amount can be refunded during the tax assessment process.

Loss offsets apply only to the same year

Private capital losses can in principle only be offset against appropriate positive investment income in the same calendar year. Therefore, bitcoin losses in 2026 can be used to reduce stock gains in 2026. If there is an unused private loss after that, it cannot, in principle, simply be carried forward to the following year. This makes year-end tax significant for investors: unrealized losses do nothing to help offset losses.

Example: How Bitcoin Losses Reduce Taxes on Stock Gains

All amounts in euros, bar length and maximum (10,000 euros) Proportional

Realized stock gains: 10,000 euros
Realized Bitcoin losses: 4,000 euros
Remaining positive investment income: 6,000 euros
Withheld tax (27.5% of EUR 10,000): EUR 2,750
Taxes after loss offsetting (27.5% of EUR 6,000): EUR 1,650
Possible tax refund obtained through tax assessment: EUR 1,100

Source: This example based on information from the Austrian Ministry of Finance on loss offsetting. As of August 22, 2026. Simplified presentation does not constitute tax advice.

Not all types of investment income can be offset

Austrian tax law sets limits.

Bitcoin losses can in principle be offset against positive income from capital assets taxed in the same way. This includes:

Stock gains, dividends, certain fund gains, other eligible cryptocurrency gains.

On the contrary, offsetting with bank deposit interest, etc. is not allowed. Private Bitcoin losses cannot be arbitrarily offset against salary income or self-employment income.

To simplify:

Bitcoin losses + stock gains: feasible in principle
Bitcoin losses + dividends: feasible in principle
Bitcoin losses + savings account interest: not feasible
Bitcoin losses + wages: Not feasible

Tax reporting makes evidence easier

Starting from the 2025 calendar year, parties in Austria with capital gains tax withholding obligations must provide standardized tax reports as required. In addition to banks, this also includes certain crypto asset service providers. This document is particularly useful for investors with multiple providers. For example, investors who hold stocks in banks and Bitcoin on crypto platforms can use their respective tax reports to prove gains, losses, and withheld taxes in their personal income tax assessments.

What rules apply to foreign exchanges?

Bitcoin losses incurred on foreign crypto transactions can also, in principle, be used to offset losses in Austria, provided that the relevant income is subject to tax consideration under Austrian law and the investor can prove the loss.

Austrian withholding tax offsets are usually not automatically made there.

Therefore, special needs are: a complete transaction history, acquisition costs, proceeds from sale, fees, euro value of the transaction, and applicable foreign tax documents.

The Ministry of Finance has clearly listed loss offsets across providers or involving foreign income as situations that require personal income tax assessment.

Conclusion

In Austria, Bitcoin losses and stock gains can in principle offset each other. As held as private assets, both are income from capital assets and are usually subject to the same special tax rate of 27.5%. The key trap is that the offset between cryptocurrency income and stock gains does not occur automatically.

If you realize stock gains at a bank and generate Bitcoin losses on another crypto platform, in principle, you need to apply for loss offset through a personal income tax declaration. The withheld tax can be partially refunded as a result. Equally important, losses must actually be realized and, in principle, occur within the same calendar year as the gains to be offset.