Bitpanda’s announcement to launch real stock and ETF trading on January 29, 2026, marks a fundamental shift for Austrian investors. After years of operating exclusively with derivatives, the Vienna-based fintech will finally offer “steuereinfach” (tax-simple) investing, meaning automatic deduction of the Austrian capital gains tax (KESt) at source. For the thousands of users who’ve manually declared their certificate-based trades at their personal income tax rate, this change eliminates one of the most frustrating aspects of using the platform.
From Certificate Chaos to Tax Simplicity
Until now, Bitpanda’s “Stocks” function relied on unbacked derivatives. Every sale triggered a manual tax obligation. Investors had to calculate gains, report them in their annual tax return, and pay at their personal tariff rate, potentially up to 55% for high earners. The process confused even experienced investors, with many unsure whether to declare under “Sonstige Einkünfte” (other income) or as speculative gains.
The new model changes everything. Real stocks and ETFs fall under Austria’s standard capital gains tax regime. Bitpanda, as a MiFID-licensed broker through Bitpanda Financial Services, becomes a “abgeltungssteuerpflichtiger” (withholding tax-obligated) institution. They’ll automatically deduct 27.5% KESt on dividends and capital gains, remitting directly to the Finanzamt (Tax Office). No more manual calculations, no more surprise tax bills, no more digging through transaction histories.
The Launch Features: 10,000 Securities for €1
According to Bitpanda’s official press release, the platform will offer roughly 8,000 stocks and 2,500 ETFs starting January 29, 2026. Each trade costs €1 flat, with savings plans remaining free. The offering excludes bonds, funds, and certificates, ironically, the very products that built Bitpanda’s original user base.
Trading occurs exclusively through the Quotrix exchange, with both market and limit orders available. This mirrors the strategy of competitors like Trade Republic, though Bitpanda’s integration with their existing crypto and precious metals ecosystem creates a unique “everything in one app” proposition.
Tax Comparison: Old vs New Regime
The difference between Bitpanda’s old and new systems highlights Austria’s complex investment tax landscape:
| Feature | Old Derivative Model | New Real Stock Model |
|---|---|---|
| Tax type | Tarifbesteuerung (income tax rates) | KESt (flat 27.5%) |
| Manual filing | Required | Not required |
| Tax rate | 0-55% (progressive) | Flat 27.5% |
| Loss offsetting | Limited | Automatic within KESt framework |
| Dividend taxation | At marginal rate | Flat 27.5% |
For a typical Austrian investor earning €50,000 annually, the marginal tax rate sits around 42%. On a €1,000 capital gain, they’d previously owe €420, manually declared. Under the new system, Bitpanda deducts €275 automatically, a €145 savings plus eliminated paperwork.
However, the flat KESt system has downsides. Investors can’t offset stock losses against other income types, only against other capital gains within the same year. High earners in top tax brackets might actually prefer tariff taxation, though this requires opting out of automatic KESt, a complex process most brokers don’t support.
Competitive Shockwaves in Austria’s Broker Market
Bitpanda’s move intensifies pressure on Austria’s “Hochpreis-Brokerlandschaft” (high-price broker landscape). Traditional banks charging €15-25 per trade look increasingly outdated. Even established discount brokers face questions about their value proposition.
Trade Republic, Bitpanda’s closest competitor, already offers €1 trades with automatic KESt. Their German regulatory base previously gave them an edge with Austrian customers seeking simplicity. Bitpanda’s local MiFID license and native understanding of Austrian tax quirks, like the Sonderkonditionenregelung for foreign ETFs, could differentiate them.
Yet established players retain advantages: telephone support, physical branches, decades of regulatory compliance experience, and proven reliability during market stress. Bitpanda’s limited support channels, chatbot and email only, no phone, raise concerns for investors managing substantial portfolios.
Practical Steps for Austrian Investors
If you currently use Bitpanda’s derivative stocks or consider opening an account, take these actions:
For existing users:
– Download complete transaction histories immediately
– Calculate potential tax liabilities if derivatives are forcibly sold
– Decide whether to transfer positions elsewhere or accept Bitpanda’s conversion terms
– Consider realizing losses before January 29 to offset against 2025 gains
For prospective users:
– Wait for the January 29 launch before opening equity positions
– Start with small amounts to test execution quality and tax reporting accuracy
– Compare Bitpanda’s ETF selection against competitors, 10,000 sounds impressive but quality matters more than quantity
– Verify the automatic KESt deduction actually works before making large investments
For all investors:
– Understand that €1 trades mean payment for order flow is banned, but spreads might widen
– Check which ETFs qualify for the Austrian tax advantages, many US-domiciled ETFs remain “steuerhässlich” (tax-ugly) despite the new rules
– Keep records of all trades, even with automatic taxation, Finanzamt audits can request proof years later
The Bottom Line
Bitpanda’s evolution from crypto upstart to full-service broker validates the Austrian market’s importance. Automatic KESt deduction removes the platform’s biggest drawback, potentially making it the most convenient option for small-scale investors.
However, uncertainty around derivative handling, limited customer support, and unproven stock trading infrastructure warrant caution. The 1% transfer bonus tempts users to migrate portfolios prematurely, resist until Bitpanda demonstrates reliable execution and accurate tax reporting.
For now, Austrian investors gain another credible option in the race toward commission-free, tax-simple investing. Whether Bitpanda can outperform established competitors remains uncertain, but their willingness to tackle Austria’s complex tax system head-on deserves recognition. The real winners are investors who’ve long demanded modern, affordable brokerage services that don’t require a Steuerberater (tax advisor) for basic compliance.
