Income tax in Austria

May 20, 2019

INDIVIDUAL TAXATION

Austria vienna realestateAustrian residents are subject to unlimited tax liability, where their worldwide income will be subject to Austrian taxation (of course, in deference to tax treaties). Married couples are taxed separately.

INCOME TAX

Taxable income is classified according to different categories. For individuals, the categories are: (1) agriculture and forestry income; (2) professional income and income from other independent services; (3) trade and business income; (4) employment income; (5) capital investment income; (6) rents, lease payments, and royalties; and (7) other specified income, including certain annuities and capital gains.

Taxable income under each category is calculated under different rules. Net taxable income from all sources are then aggregated and taxed at progressive rates.

INCOME TAX 2016 - 2020

TAXABLE INCOME, € MARGINAL TAX RATE
Up to €11,000 0%
€11,000 - €18,000 25% on band over €11,000
€18,000 - €31,000

35% on band over €18,000

€31,000 - €60,000 42% on band over €31,000
€60,000 - €90,000

48% on band over €60,000

€90,000 to €1 million 50% on band over €90,000
Over €1 million

55% on all income over €1 million

Source: Global Property Guide

INCOME TAX 2015

TAXABLE INCOME, € MARGINAL TAX RATE
Up to €11,000 0%
€11,000 - €25,000 36.50% on band over €11,000
€25,000 - €60,000

43.2143% on band over €25,000

Over €60,000 50% on all income over €60,000
Source: Global Property Guide

Residents are entitled to tax credits and some deductions.

RENTAL INCOME
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.

Stamp Duty on Lease Contracts

Stamp duty is levied on various transactions in Austria, including lease contracts. Stamp duty rates range from 0.8% to 2%.

CAPITAL GAINS

Capital gains realized from properties which were acquired as of 31 March 2002 is subject to capital gains tax at a flat rate of 27.50%. Taxable capital gains are calculated as selling price less acquisition costs and related expenses.

After a holding period of 10 years, sellers may decrease the capital gain by 2% per year as inflation reduction, up to a maximum of 50% deduction.

Capital gains realized from properties acquired before 31 March 2002 are taxed at specific different rates, either a flat rate of 15% on sales price or a flat rate of 3.5% on sales price, depending on several conditions. Sellers may also choose to be taxed at a flat rate of 25% on the capital gains.

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 up to 2% and the municipal coefficients range up to 500%.


CORPORATE TAXATION

INCOME TAX

The standard corporate income tax rate is 25%, which is levied on income and capital gains earned by companies. This rate applies to companies incorporated in Austria or foreign companies doing business in Austria.

 

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