Offsetting Bitcoin gains and dividends: what investors in Austria need to know
Bitcoin and shares are treated differently for tax purposes, yet in Austria they can meet when losses are offset. The Ministry of Finance states explicitly that gains and losses from cryptocurrencies can in principle be offset against certain other types of investment income. Dividends and realised gains on shares are among them.
That can be of particular interest to investors who sold Bitcoin at a loss while dividend income came in at the same time.
A Bitcoin loss can offset dividends
An example:
- Dividend income: 5,000 euros
- Realised Bitcoin loss: 3,000 euros
- Remaining positive investment income: 2,000 euros
Where the conditions for offsetting losses are met, the Bitcoin loss reduces the taxable dividends accordingly. Both dividends and taxable crypto income are in principle subject to the special tax rate of 27.5 percent. One point matters, though: a paper loss sitting in a Bitcoin wallet is not enough. The loss has to have been realised for tax purposes, for example through a sale for euros.
The Bitcoin tax offset does not happen automatically
This is where an important feature of the Austrian system comes in. Within the holdings they administer, banks and Austrian crypto service providers do carry out automatic loss offsetting.
An automatic offset between cryptocurrencies and other investment income such as dividends is explicitly not permitted. That cross-category offset has to be made through the income tax assessment.
Say a bank has already withheld 27.5 percent capital gains tax on dividends while a taxable Bitcoin loss arose on a crypto platform. The investor can then claim the offset through the tax return. Capital gains tax already withheld can be refunded in part as a result.
Sign up with Cointracker now and use the crypto tax toolBitcoin losses must arise in the same calendar year
Another point carries weight: offsetting works in principle within one and the same calendar year. A Bitcoin loss from 2026 can therefore be set against dividends from 2026. An unused private capital loss generally cannot simply be carried forward into later years. That is what separates private investment income from certain business losses. Towards the end of the year it can therefore become relevant for investors which gains and losses have actually been realised.
Bitcoin losses cannot be offset against savings account interest
Not every form of investment income may be set against Bitcoin losses.
Offsetting against interest on bank deposits is explicitly ruled out. That covers classic savings account interest and certain account interest. Certain distributions from private foundations are excluded as well.
In simplified terms:
