Guide to Real Estate Taxes in Austria

Nonresidents are taxed on their Austrian-sourced income. Married couples are taxed separately. Income is taxed at progressive rates.

Income is taxed at progressive rates.

Rental Income

Taxable rental income is the excess of receipts over income-related expenses (Werbungskosten). Deductible expenses include maintenance and repairs, depreciation, administrative expenses (including professional tax advice), interest payments, and real estate tax.

Nonresidents face special penalties, with the tax base of each nonresident individual being notionally increased by €8,000.

Stamp Duty on Lease Contracts

Stamp Duty

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

Capital Gains

Properties Acquired Post-31 March 2002

Capital gains realized from properties acquired on or after 31 March 2002 are subject to a flat rate capital gains tax of 30%. Taxable capital gains are calculated as the selling price less acquisition costs and related expenses.

Properties Acquired Pre-31 March 2002

Capital gains realized from properties acquired before 31 March 2002 are taxed at specific different rates.

Buying and Selling Taxes and Costs

TRANSACTION COSTS

    Who Pays?
Legal Fees 1.00% - 3.00% (+ 20% VAT) buyer
Property Transfer Tax 3.50% buyer
Land Registration Fee 1.00% buyer
Notary Fee €120 per signature (+ 20% VAT) buyer
Real Estate Agent Fee 1.50% - 2.00% (+ 20% VAT)
1.50% - 2.00% (+ 20% VAT)
buyer
seller
Costs Paid by Buyer 7.10% - 9.60%
Costs Paid by Seller 1.50% - 2.00%
ROUNDTRIP TRANSACTION COSTS 8.60% - 11.60%
Source: Global Property Guide, PWC

Property Holding 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 generally 0.20% and the municipal coefficients range up to 500%.

Corporate Taxation

Income Tax

The standard corporate income tax rate is 24%, 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.