Do you want to transfer your securities account to a new provider – what do you need to bear in mind? Here are the answers to the most frequently asked questions.
How much does switching your securities account (Depot) cost?
As a rule opening a securities account or transferring securities to a new provider is free of charge. However, your previous bank may charge you, unless it initiated the termination of your business relationship. Some new providers bear your transfer costs, or offer you a reward for switching.
TIP:ask about the costs and compare different providers, also regarding recurring fees and charges!
How long does it take to transfer asecuritiesaccount?
In a typical case, the transfer should take place within around 15 working days. It may take considerably longer for securities that are stored in a special way, or for foreign shares.
TIP:Make sure you factor in sufficient time for switching, especially if you are wanting to sell securities soon.
Are there delays?
The process may be complicated where custody of securities is in different places (depositories). Austrian depositories like OeKB CSD usually carry out transfers quickly. Transfers may take considerably longer if foreign depositories are involved.
TIP:Ensure that you fill out your order to transfer your custody account fully and correctly!
Can I access my securities while my securities account is being transferred?
During the transfer process, the affected securities are usually not available to trade, and you cannot place buy or sell orders.
TIP:If you are planning to trade at short notice, you should wait for quieter trading times to transfer your custody account.
What do I do with securities that are no longer tradeable or are worhtless?
If an undertaking is insolvent or a share is excluded from trading, the paper remains in your securities account, but is worthless. You can request your bank to remove a worthless security.
TIP:Consciously plan its removal, if you are required to pay tax on capital gains in the near future.
What happens with securities that are blocked or on which sanctions have been imposed?
Sanctions (e.g. against Russian companies) may lead to it not being allowed to transfer or sell certain securities. Such securities remain “frozen” in your old securities account and cannot be moved. The statement about your securities account will contain a remark like “not transferable (sanctions)”.
TIP:In the case of securities that are subject to sanctions, you should contact your bank, about whether and when it is possible to have the securities removed from your account.
What do I need to consider regarding tax when transferring my securities account?
While a securities account transfer might seem to be a purely technical matter, it also has to be considered for tax reasons. Every transfer of a security may have tax implications. It is a relatively simple issue for transfers between Austrian providers: The provider handles the taxation-related aspects. It is particularly important to ensure that the purchase information (purchase date and price) is correctly transferred, which is necessary for capital yield tax (KESt; Kapitalertragsteuer) calculation purposes. It gets more complicated where foreign jurisdictions are involved. Banks are usually no longer responsible in this case, and responsibility lies with you as an investor. This applies both in the case of transferring a securities account to Austria, as well as transferring it abroad or transfers abroad. Tax pitfalls lie in wait here: mistakes often lead to unexpected tax liabilities. In many cases with a foreign link is it simpler and safer to sell the old securities account, and to start afresh in Austria.
Check that the purchase information has been correctly and fully transferred after every securities account transfer. Complain immediately if something is missing: later it is usually too late.
TIP:Seek advice about tax implications. Either consult your tax office, the Chamber of Labour (Arbeiterkammer), or a tax adviser directly.
You can find detailed information at:
BMF Income Tax Guidelines (in German): you can find 2,000 pages of tax law information including the information about securities account transfers at findok.bmf.gv.at
See: Einkommensteuerrichtlinien 20.2.2.5 Depotübertragung
The BMF website also has an official handbook on securities account transfers (in PDF format in German only): www.bmf.gv.at “Handbuch Depotübertragung”
Other editions:
07 Investment advice
31 7 rules of investing
35 Execution only
PDF version of this edition (in German only)
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