Tax on property income in Austria
Tax Rate on Rental Income
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Global Property Guide research
Nonresidents are taxed on their Austrian-sourced income. Married couples are taxed separately.
Income is taxed at progressive rates.
Income Tax 2023
|TAXABLE INCOME, €||MARGINAL TAX RATE|
|Up to €11,693||0%|
|€11,694 - €19,134||20%|
|€32,076 - €62,080||42%|
|€62,081 - €93,120||48%|
|€93,121 to €1 million||50%|
|Over €1 million||55%|
|Source: Global Property Guide|
Rental IncomeTaxable 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.
Nonresidents suffer special penalties, the tax base of each nonresident individual being notionally increased by €8,000.
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 GainsCapital gains realized from properties which were acquired as of 31 March 2002 is subject to capital gains tax at a flat rate of 30%. 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.
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 generally 0.20% and the municipal coefficients range up to 500%.
The standard corporate income tax rate is 24%, 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.
According to the Eco Social Tax Reform Act, the Corporate Income Tax rate will be reduced from 25% to 24% for 2023 and further to 23% in 2024.