Hardware
Mining hardware can be qualified as a productive business asset. Once placed in service, equipment can be depreciated through degressive AfA at 30% per year, combined with the Investitionsfreibetrag (IFB), a bonus deduction of up to 20% that stacks on top of standard depreciation without reducing the AfA base. Whether these benefits apply depends on the individual case, in particular on the attribution of the hardware to a domestic permanent establishment.
Up to 50% deductible in the year placed in service.
Eligible hardware includes ASIC miners, cooling systems, electrical infrastructure and network equipment directly used in mining. To qualify, the equipment must be acquired and actively placed in service before year-end, the activity must be operated as a profit-motivated trade or business and attributable to a domestic permanent establishment..
Under § 7 Abs. 1a EStG, qualifying movable assets can be depreciated on a declining-balance basis at up to 30% per year. The rate is freely chosen up to 30% and applies to the residual book value. Permanently available for investments since 1 July 2020.
The Investitionsfreibetrag adds a 20% deduction on top of standard AfA without reducing the AfA base. For investments placed in service between 1 November 2025 and 31 December 2026, the rate is temporarily doubled from 10% to 20% (22% for ecological assets). Maximum eligible base: €1 million per fiscal year. The asset must remain in the business for at least four years.
An Example Calculation
In this illustrative scenario, an Austrian GmbH generates €500,000 in pre-tax annual profit and purchases €300,000 of new qualifying mining hardware in fiscal year 2026. The corporate tax rate of 23% applies, combined with degressive AfA at 30% (from year 2 linear AfA) and the temporarily boosted IFB at 20%.
Assumptions and legal notes
Illustrative only. Figures assume an Austrian GmbH or AG, 2026 fiscal year, degressive AfA of 30% under § 7 Abs. 1a EStG, the temporarily increased Investitionsfreibetrag (IFB) of 20% under § 11 EStG, and equipment placed in service before year-end. The increased IFB applies only from 1 November 2025 to 31 December 2026, is capped at a €1 million base per business and fiscal year, and requires a four-year holding period. The corporate income tax rate is a flat 23% (§ 22 KStG). Not included: 27.5% Kapitalertragsteuer on distributed profits, a half-year AfA reduction for assets placed in service in the second half of the year, and other situation-specific factors. Actual results depend on individual circumstance. Not personal tax advice.
Hardwarecost 300,000 €
- Tax Savings Year 1 ~ 34,500 €
- Tax Savings Year 2-4 ~ 48,300 €
Operating Costs
Mining does not end with hardware. Under § 4 Abs. 4 EStG, all ordinary and necessary expenses incurred to operate a business are fully deductible in the year they are paid.
Fully Deductible the Year They're Incurred
This covers hosting fees, electricity, internet, hardware maintenance and repairs, insurance, accounting and professional services. Every recurring cost required to keep the hardware online and productive. Expenses must be documented in the tax year they are claimed.
§ 4 Abs. 4 EStG permits the deduction of any expense that is both ordinary (common in the business) and necessary (appropriate for operations). For mining, this covers the full operational stack.
WHAT BITKERN DELIVERS
You Own The Hardware. Bitkern Handles The Rest.
For the tax provisions above to apply, you need to own real, productive mining equipment that's placed in service during the tax year. Bitkern provides every layer of that: hardware, hosting, operations, and an exit path. No technical expertise required. No deployment hassle. No ongoing operations.
Hardware Sourcing & Procurement
Latest-generation ASICs sourced direct from manufacturer, purchased in your name or your GmbH or AGs name.
Deployment Worldwide
Placed in service in one of 20+ data centers across the U.S., Europe, Asia and beyond.
24/7 Monitoring
Continuous uptime management with a 98% SLA. Issues identified and addressed before they impact hash rate.
Maintenance & Repairs
All hardware servicing, firmware updates and repair coordination handled by our technical team.
Monthly Statements & Reporting
Detailed reports on hash rate, earnings and operational metrics. Documentation ready for your accountant.
Optional Buyback Program
Want liquidity? We handle the secondary-market resale and provide depreciation-recapture data for clean exit.
Ready To Put Your Capital To Work?
Independent Tax Partner
Tax Questions? Enzinger Steuerberatung Has The Answers
Our independent partner Enzinger Steuerberatung has a dedicated team of accountants and tax advisors with profound experience in the crypto business, who can support you on entity structure, depreciation strategy, and other specifics of your situation.
Legal Notice
Bitkern is not a tax advisor (Steuerberater), Wirtschaftstreuhänder, financial service provider, or law firm. References to § 4 Abs. 4, § 7 Abs. 1a and § 11 EStG (Investitionsfreibetrag) and to § 22 KStG (23 % corporate income tax) describe general concepts of Austrian tax law only; their concrete application depends on the specific situation of the entity. Whether ASIC mining hardware qualifies as a depreciable movable asset for the degressive AfA and the IFB is decided case by case and should be confirmed with a qualified tax advisor. The increased IFB of 20 % / 22 % applies only from 1 November 2025 to 31 December 2026, is capped at a EUR 1 million base per year, and requires a four-year holding period. The 23 % rate covers the corporate level only; distributions to individuals incur an additional 27.5 % Kapitalertragsteuer. Austrian tax law and administrative practice change frequently, and figures may not reflect the latest amendments. Before any tax-related decision, consult a qualified Austrian Steuerberater or Wirtschaftstreuhänder. Independent advisors in our partner network act on their own behalf and are not representatives of Bitkern.