Austria – Property Taxes

What taxes and fees apply when buying a property in Austria?

Real estate transfer tax (Grunderwerbsteuer, or GrESt) is a one-time levy triggered whenever real estate in Austria changes hands, regardless of whether the transaction involves payment or is gratuitous in nature. Where property is acquired through a standard purchase — that is, for consideration — the rate stands at 3.5% of the purchase price. This is broadly comparable to stamp duty land tax in the UK or provincial land transfer taxes in Canada, although Austria applies its rate uniformly rather than through the progressive banding found in some other jurisdictions.

Once a transaction completes, the new owner’s title must be formally recorded in the land register. A fee of 1.1% of the property’s assessed value is charged for this registration entry (Grundbuchseintragungsgebühr). From July 2025, this title registration fee may be waived for properties valued at €500,000 or below; where the value exceeds that threshold, the fee will be calculated only on the portion above it. Always confirm the current position with the Austrian Federal Ministry of Finance (BMF) or oesterreich.gv.at.

Austrian law requires every property transaction to be certified by a notary or qualified lawyer, who verifies the legal status of the property, drafts the purchase and sale agreement, and operates a trust account (Treuhandkonto) to ensure secure handling of funds. Notary fees generally fall in the range of 1–2% of the purchase price, with 20% VAT levied on top.

Where a property is found through a licensed estate agency, the agent’s commission typically runs to 3–4% of the purchase price plus 20% VAT. If the buyer is financing the purchase with a mortgage, a one-off charge of 1.2% of the loan amount is payable to register the mortgage (lien) against the property in the land register (Hypothekeneintragungsgebühr).

The table below illustrates approximate costs for a €400,000 apartment purchase made through an agent (as of 2025/2026, before any applicable fee waiver):

Anyone purchasing real estate in Austria should plan not only for the headline purchase price but also for acquisition costs averaging 10–12% on top of it. These costs split into mandatory obligations — taxes, registration fees, and notary charges — and discretionary ones, such as agent commissions or mortgage arrangement fees. It is advisable to confirm current rates with an Austrian notary or legal adviser before finalising any transaction.

Step-by-step: how to complete a property purchase in Austria

1. Financial assessment: Determine your overall budget, bearing in mind that acquisition costs of 8–12% must be added to the purchase price itself.
2. Property search: Look independently via online portals or retain a licensed Austrian estate agent (Makler) with knowledge of your chosen area.
3. Due diligence: Before committing, request a land register extract (Grundbuch) through a notary or lawyer to confirm the title is free of encumbrances — the extract will reveal any mortgages, seizure orders, or restrictions on use.
4. Engage a notary or lawyer: A qualified legal professional is required under Austrian law to prepare the purchase contract and administer the trust account for the secure transfer of funds.
5. Sign the purchase contract: Liability for real estate transfer tax arises at the moment the contractual deed takes legal effect — generally when both parties sign.
6. Pay taxes and fees: The legal representative reports and remits the transfer tax via FinanzOnline, identifies the applicable rate, and establishes the correct assessment basis. Prompt and accurate payment is a prerequisite for registration in the land register — without it, title cannot formally pass to the buyer.
7. Land registry registration: The buyer’s ownership is entered into the Grundbuch. The process is regarded as finalised once that entry is confirmed in writing.

What taxes and fees apply when selling a property in Austria?

When a property owner in Austria decides to sell, their principal financial obligations consist of capital gains tax on any profit realised (addressed in the following section), estate agent commission where an agent has been instructed, and legal costs associated with contract preparation. In contrast to some other countries, the real estate transfer tax is primarily the buyer’s responsibility, although in principle all parties to the acquisition — including the seller — carry joint liability. In practice, it is the buyer who meets this cost.

Agent fees are a matter for negotiation but commonly range from 3–4% of the sale price plus 20% VAT. Depending on which party engaged the agent, these costs may be shared between buyer and seller. The seller’s legal costs — covering contract review and tax reporting — typically fall in the 1–2% range. Sellers should additionally account for any outstanding mortgage redemption charges and, if required, the cost of commissioning a professional valuation.

For most sellers, the most consequential financial consideration is capital gains tax (Immobilienertragsteuer, or ImmoESt), which is examined in full in the next section. Sellers are required to have this tax assessed and remitted by their notary or lawyer at the point of sale, using the FinanzOnline self-assessment system.

Is capital gains tax payable on property sales in Austria?

Since 1 April 2012, profits made on the sale of Austrian real estate have been subject to real estate income tax (ImmoESt), replacing the former speculation period regime. Gains realised by individuals are taxed at a flat rate of 30%. This is broadly consistent with capital gains tax rates across much of Europe, and notably lower than the progressive income tax rates applied to rental earnings.

The tax framework draws a distinction between “new cases” and “old cases” depending on when the property was originally acquired. For new cases — properties bought after 31 March 2002 — the tax is 30% of the actual net capital gain. Allowable deductions include proven acquisition costs, ancillary costs at the time of purchase (such as land transfer tax, registration fees, and contract preparation charges), and certain qualifying repair and improvement expenditure.

For old cases — properties acquired before 1 April 2002 — the tax authority applies flat-rate acquisition costs of 86% of the sale proceeds. Only 14% of the proceeds is therefore treated as the taxable profit, producing an effective tax rate of 4.2% of the total amount received.

Two significant exemptions exist. Under the Austrian Income Tax Act, the disposal of a principal private residence is exempt from capital gains tax up to the portion of land “ordinarily required as a building plot,” with administrative practice capping this at 1,000 sqm. The exemption applies where the seller has occupied the property as their primary home for at least two consecutive years from the date of acquisition, or for at least five years within the ten-year period immediately preceding the sale, and vacates the property upon selling it. A separate exemption covers self-constructed buildings where the seller has borne the construction risk and has not used the property to generate income during the preceding ten years — though this exemption extends only to the building itself and not to the underlying land.

Capital gains tax under the ImmoESt regime applies exclusively to acquisitions or disposals made for payment. A transfer without consideration generates no sale proceeds and therefore no taxable gain. Gifts and inheritances are consequently not subject to ImmoESt.

Practical example (new case, as of 2025): An apartment purchased in 2005 for €180,000 (inclusive of ancillary costs) is sold in 2024 for €280,000. The owner also incurred €15,000 in renovations and €700 in self-calculation costs. Assessment basis: €280,000 − (€180,000 + €15,000 + €700) = €84,300. ImmoESt: €84,300 × 30% = €25,290.

For non-residents, Austria generally retains the right to tax gains on Austrian real estate. Non-resident companies are subject to the same rules as their resident counterparts, since income derived from immovable property situated in Austria is taxable there. The same principle broadly applies to individuals under the terms of most double tax treaties, though the precise provisions of any applicable treaty should always be verified with a locally qualified adviser. Refer to the official Austrian government guidance on ImmoESt for up-to-date information.

Are there annual property taxes in Austria?

Austrian law obliges all property owners to pay an annual levy on their real estate — the Grundsteuer. This is an important consideration when purchasing property in Austria and should not be confused with the one-off real estate transfer tax (Grunderwerbsteuer). While the Grunderwerbsteuer is a single payment made at the time of purchase, the Grundsteuer recurs every year.

Local authorities levy real estate tax each year on all Austrian real estate, whether built upon or not. The tax is assessed against the standard ratable value (Einheitswert) of the property, which is generally far below the current market value — reference prices from 1973 are used when calculating the Einheitswert. A reform of this valuation system has been under discussion and could affect future Grundsteuer levels; the latest guidance from the BMF should be consulted for any updates.

The calculation works as follows: Einheitswert × Steuermesszahl (federal base rate) × Hebesatz (municipal multiplier) = Grundsteuer. The assessment base is 0.1–0.2% of the ratable value. This figure is then multiplied by the assessment rate set by the relevant municipality, which may reach as high as 500%. The resulting annual tax cannot exceed 1% of the assessed value.

Vienna applies a municipal multiplier of 500%. As an illustration, a single-family dwelling with a ratable value of €50,000 generates a base tax of €87.23. Applying Vienna’s 500% multiplier yields an annual liability of €87.23 × 5 = €436.15. Set against countries such as France — which levies a taxe foncière — or the United States — where annual property taxes of 1–2% of market value are standard — Austrian Grundsteuer is very moderate.

As of early 2026, annual Grundsteuer bills for a typical Vienna apartment run to around €100–€400, while owners of houses pay approximately €300–€1,200 per year depending on the size and assessed value of the property. The tax is ordinarily collected in four quarterly instalments, falling due on 15 February, 15 May, 15 August, and 15 November each year.

In certain provinces, municipalities may grant temporary Grundsteuer exemptions, particularly for newly created subsidised residential properties. Applications for such exemptions must be submitted to the relevant municipal authority. Although the property owner is the formal tax debtor, the Grundsteuer may be passed on to tenants as part of the operating costs of the property.

How is rental income from property taxed in Austria?

Where a property is let out rather than occupied personally, the resulting income is subject to Austrian income tax. Rental receipts are combined with the owner’s other earnings and taxed at the standard progressive income tax rates, which range from 20% to 55%. This approach mirrors the treatment of rental income in countries such as Germany and the Netherlands, where it is folded into total personal income rather than being taxed at a separate flat rate.

Austria provides a tax-free income threshold of approximately €13,300 per year (as of 2024). If total rental income after allowable deductions remains within this amount, no tax arises. Income above this threshold is taxed at the appropriate progressive rate — 20%, 30%, and so on, rising to 55% for the highest earners. The current threshold should be confirmed with the Federal Ministry of Finance, as it is subject to periodic revision.

Taxable rental income is arrived at by deducting permitted expenses from gross receipts. Allowable costs include maintenance expenditure, property management charges, mortgage interest, and depreciation. Standard depreciation rates are 2% per annum for houses and 2.5% for apartments. Maintaining comprehensive records of all costs is essential to keeping the tax burden to a minimum.

Non-residents face individual income tax rates ranging from 0% to 55% (as of 2025). Their effective rate may be somewhat higher than that of residents because the first €10,888 of income is subject to a “notional” addition that effectively narrows the tax-free band. Non-residents generating rental income from Austrian property must submit an Austrian income tax return and may be required to appoint a local tax representative.

Short-term lettings through platforms such as Airbnb attract additional considerations. Such rentals may fall within the scope of VAT at 20%. However, under the small entrepreneur exemption (Kleinunternehmerregelung), owners whose annual turnover does not exceed €55,000 (from 2025) are not required to charge VAT. Short-term holiday lettings may also attract municipal tourism taxes. The VAT exemption threshold was raised from €35,000 to €55,000 in 2025, providing meaningful relief for smaller-scale landlords.

Does inheritance tax apply to property in Austria?

Austria scrapped both inheritance and gift taxes in August 2008. This sets Austria apart from countries such as Germany, France, and the UK, where property passing on death can give rise to a substantial inheritance tax liability for the beneficiaries.

Although there is no inheritance tax as such, the real estate transfer tax (Grunderwerbsteuer) does still apply when property passes on death. For gratuitous transfers — including inheritance — the rate is calculated on a sliding scale based on the assessed property value rather than the flat 3.5% charged on commercial sales. The taxable base for charge-free transfers is the property value, with rates of 0.5% for values below €250,000, 2% for values up to €400,000, and 3.5% for values exceeding €400,000.

The standard land registry fee of 1.1% also applies to inherited property. Capital gains tax (ImmoESt) is not triggered by an inheritance — the transfer itself generates no proceeds. This means heirs do not acquire an immediate CGT liability when they receive the property, although CGT will become due when they eventually sell, based on the original acquisition costs of the former owner.

Even though inheritance tax has been abolished, gifts and inheritances above certain thresholds must be reported to the tax authorities. Works of art, household effects, and occasional gifts worth no more than €1,000 are excluded from this reporting requirement. Non-residents who inherit Austrian property remain subject to Austrian transfer tax obligations. Any applicable double tax treaty should be reviewed with a locally qualified adviser. The official guidance on Grunderwerbsteuer sets out the current rates.

Does gift tax apply to property transfers in Austria?

As described above, Austria abolished gift tax in August 2008. However, a property gift is not entirely free of tax consequences. Whenever land or real estate changes hands in Austria — whether through a purchase, a gift, or an inheritance — real estate transfer tax becomes payable. This liability is not confined to classic sale agreements; it equally encompasses gratuitous transfers such as donations and bequests.

The same graduated GrESt scale that governs inherited property also applies to gifts: 0.5% on values below €250,000, 2% on values up to €400,000, and 3.5% on values above €400,000. From 1 July 2025, a preferential rate of 0.5% applies to transfers of real estate between close family members — including spouses, children, grandchildren, parents, and civil partners — provided that the family relationship is properly documented to confirm entitlement to the reduced rate.

An exemption allowance of €900,000 exists for gratuitous and partially gratuitous transfers in the context of business succession, subject to conditions — such as the transferring person being unable to continue in business owing to death, age, or incapacity. For everyday residential gifts between family members, the key figure is the 0.5% rate applied to the full property value.

Because the recipient of a gifted property inherits the donor’s original acquisition costs for CGT purposes, both the timing and the structure of the gift can carry long-term tax implications. Professional advice from an Austrian-qualified tax consultant is strongly recommended before proceeding with any property gift.

Are there any tax advantages or incentives for buying property in Austria?

Austria supports owner-occupation through a number of targeted reliefs. Buyers of a principal residence may benefit from a temporary exemption from both real estate transfer tax and the land registry fee on properties valued up to €500,000. They also stand to benefit from the capital gains exemption on sale, provided the residence conditions are satisfied. Together, these reliefs can amount to savings of around €7,000 on a €500,000 purchase, as of 2025.

Second homes and investment properties are ineligible for the primary residence transfer tax relief. Furthermore, income generated through short-term holiday lettings may be subject to additional municipal tourism levies. Buyers primarily motivated by investment returns should incorporate these costs into their financial projections.

In certain federal states and municipalities, newly built apartments developed through state-subsidised housing programmes (geförderte Wohnobjekte) may qualify for a temporary exemption from Grundsteuer. This relief can extend from 5 to 10 years and requires a formal application to the relevant local authority.

Owners of rental property can reduce their taxable income by claiming deductible expenses covering repairs, insurance, management costs, and building depreciation. Standard depreciation allowances are 2% per annum for houses and 2.5% for apartments. With careful tracking of all allowable expenditure, taxable profits can be kept to a minimum. Investors undertaking substantial renovation work may additionally be able to spread certain qualifying costs across multiple tax years, further lowering annual liabilities.

Beyond direct tax reliefs, support programmes exist for young families, professionals, and other groups, offering financial bonuses towards home purchase — though these do not directly alter tax treatment. Availability and eligibility criteria vary between Bundesländer, so prospective buyers should consult the relevant regional housing authority or oesterreich.gv.at for details of current programmes.

Do different rules apply to foreign buyers or non-residents purchasing property in Austria?

Austria does not impose an additional surcharge on overseas purchasers, and the taxes and fees described throughout this guide apply in the same way to non-residents as to Austrian nationals. That said, there are several practical and regulatory considerations that foreign buyers should keep in mind.

Citizens of EU and EEA member states generally have the same rights to purchase property as Austrian nationals. Nationals of countries outside the EU and EEA may encounter restrictions in particular federal states (Bundesländer), especially when seeking to acquire agricultural land or holiday homes in certain alpine or rural localities, where permit-style requirements can apply. The rules vary by location and property type, so it is always advisable to check with the relevant provincial authority (Landesregierung) before making any commitment.

Non-resident landlords may face a marginally higher effective income tax rate on rental income because the first €10,888 of income is subject to a notional uplift that effectively reduces the tax-free allowance. This makes tax planning particularly worthwhile for non-residents with Austrian rental properties.

Non-residents frequently need a residence permit or an Austrian bank account to complete a purchase. According to the Österreichische Nationalbank, in 2024, foreign buyers accounted for only around 12% of mortgage transactions, partly because Austrian banks tend to be cautious when dealing with non-residents and favour applicants with established local ties. As a result, non-resident buyers often need to provide a larger cash deposit or arrange alternative financing.

For tax compliance purposes, non-residents with Austrian property income — whether rental earnings or capital gains — are required to file an Austrian income tax return. Non-resident companies are treated on the same basis as resident ones, and the provisions of any applicable double tax treaty must be taken into account. Austria maintains an extensive network of such treaties that may affect both income tax and withholding tax obligations. A locally qualified Austrian tax adviser is strongly recommended for any non-resident purchasing or holding property in Austria. The Federal Ministry of Finance (BMF) website carries comprehensive guidance in German and some material in English.

Frequently asked questions about property taxes in Austria

Do I have to pay real estate transfer tax if I buy a property from a family member?

Yes, real estate transfer tax (Grunderwerbsteuer) still applies, but at a preferential rate. From 1 July 2025, transfers between close relatives — including spouses, children, grandchildren, parents, and civil partners — attract a rate of just 0.5%. All other purchases remain subject to the standard 3.5% rate. Confirm the current position and the qualifying family relationships with your notary or the BMF.

Is there a capital gains tax exemption if I sell the home I live in?

Yes. Where the property has served as the seller’s principal private residence for at least two consecutive years from the date of acquisition, or for at least five years within the last ten years before the sale, and the seller vacates it upon disposal, the gain is exempt from capital gains tax (ImmoESt). This is a valuable relief for owner-occupiers. Consult the official Austrian government guidance or a qualified tax adviser to confirm whether your circumstances qualify.

How much capital gains tax will I pay if I sell a property I bought in 1995?

For properties acquired before 1 April 2002 — referred to as “old cases” — the tax authority assumes acquisition costs of 86% of the sale proceeds, leaving only 14% of the proceeds as the taxable gain. That gain is then taxed at 30%, producing an effective burden of just 4.2% of the total sale price. A tax adviser can confirm whether your property qualifies for this treatment.

Will I owe any Austrian tax when I inherit a property in Austria?

Austria abolished inheritance tax in 2008, so no inheritance tax arises. However, real estate transfer tax (GrESt) does apply to property passing on death, on a graduated scale: 0.5% on value up to €250,000, 2% on value up to €400,000, and 3.5% on value above €400,000 (as of 2025). The land registry fee of 1.1% also applies. Capital gains tax is not triggered by the inheritance itself. Check current rates with the BMF.

Do I need to register as a landlord in Austria for tax purposes?

Yes. All landlords earning rental income from Austrian property — whether resident or not — must declare that income in an Austrian income tax return. Where rental activity constitutes a business (for example, short-term holiday lettings), VAT registration may also be required. If annual turnover does not exceed €55,000 (from 2025), the small entrepreneur exemption (Kleinunternehmerregelung) removes the obligation to charge VAT. Speak to the BMF or a local tax adviser for guidance tailored to your situation.

How much is the annual property tax (Grundsteuer) on a typical Austrian apartment?

As of early 2026, a typical Vienna apartment owner can expect to pay between €100 and €400 per year in Grundsteuer, while house owners generally pay €300–€1,200 annually depending on the size and assessed value of their property. The tax is based on a ratable value (Einheitswert) that tends to be far below market value, which is why annual bills are low by international standards. For a figure specific to your property, contact the relevant local authority (Gemeinde).

Can a non-EU citizen buy property in Austria?

In the majority of cases, yes — Austria imposes no outright ban on residential property purchases by non-EU/EEA nationals. However, individual federal states may impose additional permit requirements, particularly for agricultural land, alpine holiday properties, or second homes in designated areas. Rules differ by location and property type. Always verify the position with the relevant Landesregierung before proceeding, and retain a locally qualified Austrian lawyer to guide you through the process.

Are there tax differences between owning property through a company versus personally in Austria?

Corporate owners pay corporate income tax — reduced to 23% in 2025 — on property-related gains in place of the progressive personal income tax rates. This can benefit investors with large portfolios or high individual incomes, but company ownership also entails greater administrative burden, additional reporting obligations, and potential VAT complexity. From July 2025, amendments to the taxation of indirect property sales conducted through the transfer of company shares mean that GrESt will be assessed on the market value of the entire property portfolio, in practice applying the same 3.5% rate as a standard purchase in most scenarios. Given that individual circumstances vary widely, professional advice from a locally qualified Austrian tax adviser is essential before deciding to hold property through a corporate structure.