Austria: Taxes and Costs
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Rental income tax is high in Austria
Effective Tax Rate on Rental Income |
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| Monthly Income | €1,500 | €6,000 | €12,000 |
| Tax Rate | 33.9% | 25.6% | 25.9% |
| Click here to see a worked example | |||
Source:
Disclaimer
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INDIVIDUAL TAXATION
INCOME TAX
Non-residents earning income in Austria are subject to “limited tax liability” where only their income sourced in the country is taxed (this includes rental income). Married couples are taxed separately. Rates applicable are:
INCOME TAX |
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| TAXABLE INCOME, € | MARGINAL TAX RATE |
| Up to €10,000 | nil |
| €10,000 – €25,000 | 38.333% on band over €10,000 |
| €25,000 – €51,000 | 43.596% on band over €25,000 |
| Over €51,000 | 50% on all income over €51,000 |
| Source: Global Property Guide | |
Rental Income Tax
Taxable rental income is the excess of receipts over income-related expenses (werbungskoten). Expenses such as maintenance and repairs, depreciation, administrative expenses (including professional tax advice), interest payments and real estate tax are deductible.
Non-residents suffer special penalties, the tax base of each non-resident individual being notionally increased by €8,000.
Capital Gains Tax
Capital gains realized from the sale of real estate held for more than 10 years are exempt from taxation. But properties sold within 10 years of acquisition are taxable, except if the property has served as the owner’s primary residence for the past two years or if the owner have erected or have the building erected himself.
Taxable capital gains for properties sold within the 10 years retention period will be considered as speculative (exemption stated above) and will be charged at the same rates as income tax. The acquisition cost will be deducted from the selling price to arrive at the taxable amount.
PROPERTY TAXES
REAL ESTATE TAX
Property taxes in Austria are levied on the assessed value of real property, which is generally less than the prevailing market value. It is levied at a basic federal rate, multiplied by a municipal coefficient. The basic federal rate is usually 0.2% and the municipal coefficients range up to 500%.
Austria - more data and information
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