Bitcoin as Loan Collateral: When No Tax Applies in Austria

The information provided in this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high degree of risk. Always conduct your own research.Pledging Bitcoin as collateral for a loan? As long as the coins are not realised, no sale arises in Austria in principle.Bitcoin as Loan Collateral: When No Tax Arises in AustriaOwning Bitcoin, needing liquidity, and yet not wanting to sell the coins: crypto loans promise exactly that model. The investor pledges Bitcoin as collateral and receives euros or stablecoins as a loan in return. For tax purposes, the decisive question is what actually happens to the Bitcoin.A mere pledge, in which the investor remains the beneficial owner and the coins are neither sold nor exchanged for another asset, does not in principle trigger a taxable realisation event.Tax on Bitcoin generally arises on a realisationAustrian crypto tax law captures in particular the following events:a sale for euros,an exchange for foreign currencies,an exchange for other assets,use as payment for services.An exchange of one crypto asset for another, by contrast, remains tax-neutral in principle. Where Bitcoin is ...