Do casino winnings have to be taxed in Austria?

In the past few years online casinos have become more and more popular. Also and especially in Austria people love to play. The question arises as to what actually happens to the profits and whether these have to be stated in the tax return . It is precisely this question that we have devoted ourselves intensively to in the last few days, because after all, it is important to us that our readers do not make mistakes. If you take a look around the vastness of the Internet, you will unfortunately be told too much. There is clearly no lack of misinformation there. These statements that we have read can certainly unsettle players. But which facts are correct when it comes to taxing online casino profits in Austria? Take a look at our information right away, so that you can then immerse yourself in the action at your favorite casino with a good feeling.

In a nutshell: winnings from games of chance are not taxable in Austria and do not have to be shown in income tax . This of course also includes winnings when playing in the online casino, be it slot machines, roulette or other casino games.

As a player, you face several hurdles in the online casino. The European Court of Justice has had to deal with gambling and taxes several times, although the legal situation in this country is still not clear. On the one hand, EU-licensed casinos are subject to the Freedom of Services Act and can therefore also operate in Austria without any problems. On the other hand, the legislature in the country has something against these offers and has been doing everything possible for years to strictly ban foreign gaming companies - primarily to protect their own monopoly, which has existed for years, which in turn contradicts the legal situation of the EU . So both sides argue about whether it is allowed or not to use online casinos as a player in Austria. This goes hand in hand with the question of taxation, which we would now like to clarify once and for all.

All types of income tax at a glance

First of all, it should be said that the Income Tax Act in Austria must be viewed completely independently of the Gambling Act. Unfortunately, many information pages mix up both areas in such a way that it is hardly possible for players to differentiate between them. So whether Austria has a problem with online casinos or not, that doesn't matter when it comes to taxes. The following types of taxes, on the other hand, are clearly defined in the country:

  • Income from a commercial enterprise
  • Income from self-employment
  • Income from non-self-employed activity
  • Income from agriculture and forestry
  • Income from renting / leasing
  • Income from capital assets
  • Other Income

As you can see here relatively quickly , six of the seven types of tax are eliminated immediately , because in order to be taxable for self-employment, for example, you would actually have to practice gambling full-time. Anyone who earns their living by playing poker and does not have too much additional income or none of the other jobs would be legally obliged to pay tax on winnings from online casinos. Since most players see the casino visit more as a hobby and at most play in between, this type of income would not be an option either.

But what about the “other income” area ? At least at first glance, this is not defined in more detail, so that there is now reason to fear that even small profits may have to be taxed after all. We will now clarify in detail whether this is really the case.

Other income in Austria's tax law - that's behind it

This area has been divided into four particular types of income. And of course these are also clearly regulated in the country's tax law. For example, anyone who sells land or carries out speculative transactions is taxable. The same applies to all those who occasionally lend their vehicle or other things that are movable. Of course, all of these examples have nothing in common with the game in online casinos , so that ultimately there is no tax burden to be feared even here . Challenge your luck at the slot machine or face the croupier at the roulette table , none of this has anything to do with speculation. In the end, coincidences decide whether you win or not.

Do I have to pay tax on my winnings from the online casino?

In conclusion, it can be said that there are no laws stating that gambling winnings must be taxed. All of the above types of tax exclude this. If you win, you can keep the amount in full, you don't have to report it to the tax office and therefore you don't have to worry about costs. As always in life, exceptions prove the rule. Here are a few more details.

Whether you play poker, slots, roulette or blackjack is irrelevant for the legal situation. And the amount that is won is also of no interest to the tax office. So if you become a millionaire overnight playing a jackpot machine , the money is yours and you can do whatever you want with it. In the first place, the location of the online casino does not play a decisive role, but your place of residence. If you are at home in Austria, this automatically exempts you from tax liability . Incidentally, there are similar regulations in Germany - but this is only mentioned in passing.

At online casinos that are licensed in Malta, the ghosts are currently arguing. The European Court of Justice gives the green light to providers who are very liberal with their services and who actively offer games in Austria. The Austrian legislature does not like this, but as long as the question of legality has not been finally clarified, you can also challenge your luck with such companies to your heart's content without fear of a tax burden. The attempt on the part of the country to block Maltese casinos and providers from other EU countries has so far failed miserably. The country still has no legal control against the companies - good for players who prefer casinos such as Wunderino, NetBet & Co. to the traditional local casino.

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