“My account is abroad, so the Austrian tax authorities cannot see it.”
That assumption has been outdated for years.
Automatic international exchange of financial account information is already well established. From 2026, however, the Common Reporting Standard (CRS) is being expanded, with the first automatic exchange under the updated rules for the 2026 reporting year taking place in 2027.
How does the CRS work?
The Common Reporting Standard provides a framework for the automatic exchange of financial account information between participating jurisdictions.
Financial institutions identify the tax residence of their customers. Where an account holder is tax resident in another participating jurisdiction, reportable financial information can be transmitted to the relevant authorities and ultimately exchanged with the account holder’s country of tax residence.
A foreign bank account is therefore not automatically invisible to the Austrian tax authorities.
The scope is becoming broader
The updated CRS extends reporting to additional digital financial products.
Certain electronic money products and central bank digital currencies are brought within its scope. The amended rules also cover certain indirect investments in crypto-assets through derivatives and investment vehicles.
At the same time, due-diligence and reporting requirements are being strengthened to improve the quality of information available to tax administrations.
What does this mean for Austrian tax residents?
Holding an account with a foreign bank is not, in itself, a tax violation.
The important question is whether the account or investment portfolio generates income that must be reported in Austria.
This may include interest, dividends, capital gains or other investment income.
Automatic exchange of information enables the Austrian tax authorities to compare information received from foreign financial institutions with income reported in Austrian tax returns.
What if tax has already been paid abroad?
Foreign withholding tax does not necessarily mean that no further action is required in Austria.
It must be determined which country has the right to tax the income, whether the income must also be reported in Austria and whether foreign tax can be credited against Austrian tax.
The applicable double taxation treaty and the type of income are particularly important in this assessment.
Why review foreign accounts now?
The updated CRS applies to the 2026 reporting period, with the first automatic exchange under the amended standard taking place in 2027.
For Austrian tax residents, now is therefore an appropriate time to review foreign bank accounts and investment portfolios and ensure that the related income has been treated correctly.
A foreign account is not the problem. A discrepancy between information available to the tax authorities and the Austrian tax return can be.
steuerexperten.at advises clients on foreign accounts, international investment income, double taxation treaties and the correct reporting of foreign income in Austria.
