Interest, dividends, or capital gains from abroad can be highly attractive – and profitable. But foreign accounts often hide a commonly underestimated tax trap that can lead to legal issues and costly back payments: Austria’s capital gains tax obligation.
A common misconception:
“My account is abroad – the tax office won’t find out.”
A dangerous assumption.
Because foreign-sourced capital income is taxable in Austria. Failing to declare or properly tax such income can result in severe consequences – from hefty tax reassessments to criminal proceedings for tax evasion.
Avoiding Double Taxation – But Do It Right
Yes, Austria has signed double taxation agreements (DTAs) with many countries. However:
- These agreements only apply if your tax filings are done correctly.
- A DTA does not replace proper tax compliance.
Mistakes are common – and costly. For example:
- Capital income is declared incorrectly or too late
- Foreign withholding tax is not properly credited
- Austrian capital gains tax (KESt) is simply “overlooked”
Our Recommendation: Don’t Take the Risk
The good news: With professional support, you can avoid all of this.
We recommend:
- Keep detailed records of all foreign payments and earnings
- Consult a tax advisor familiar with international and Austrian tax law
- Seek advice early to avoid back payments, penalties, or audits
We’re Here to Help
As an experienced tax advisory firm, we help you:
✔ Accurately report your foreign capital income
✔ Legally optimize your tax burden
✔ Ensure full compliance with Austrian tax regulations
Book a free initial consultation today – and make sure your foreign account doesn’t turn into a tax headache.
