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Transaction and registration taxes

Title deed transfer tax in Austria is 3.5% of property value.

Registration fees in the amount of 1.1% are charged for recording the purchase on the Land Register (Grundbuch).

20% VAT is charged on purchases of newly-built property.

Elena Milishenkova Elena Milishenkova Tranio As a general rule, this tax is included in the price, with one exception: investors who buy property for rental purposes and not for personal use. They are exempt from this tax, making the price 20% lower. We even have different price lists for new buildings: one with VAT included for general buyers and one for investors, without VAT.

Ownership taxes

There is no regular tax on buildings in Austria, only land tax (Grundsteuer). It is calculated on estimated land value (Einheitswert), which is a lot lower than market value. Actual rates differ depending on regions and municipalities. Estimated land value and tax payable can be requested from the Austrian Inland Revenue Services (Finanzamt).

For apartments, this tax is quite low and is included in the monthly bills.

For houses, this tax depends on cadastral purpose and actual use of land. For example, the land on which the house is built is taxed at one rate. Land where it is authorised to build (Bauland) according to the cadaster but has no buildings is taxed at another rate. Finally, the land registered in the cadaster as “green space” is taxed as forests and agricultural land.

Capital gains, inheritance and gift taxes

There is no inheritance or gift tax in Austria.

Capital gains tax is 25%.

Income and corporate taxes

Income tax is charged at a progressive rate depending on the individual’s revenue. People earning less than €11,000 per annum do not pay income tax. Non-residents, including those receiving income from property rentals in Austria, pay income tax at the same rates as residents. However, the minimum taxable income threshold for non-residents is €2,000, instead of €11,000.

Income tax rates

Income,
EUR
Rate,
%
Under 10,999 0
11,000–25,000 36.5
25,001–60,000 43.2
Over 60,000 50.0

Corporate tax is 25%.

Disclaimer: the information in the above article is for reference and may be subject to change over time. Persons interested in exact calculations should contact a certified tax specialist in this country before purchasing property.