Austria: Property Taxes
Overview
Non-residents are subject to taxation on all income generated from Austrian sources, including rental income and capital gains from property sales. It's important to note that Austria applies a progressive tax system, meaning the tax rate increases with higher income levels. For tax purposes, married couples are assessed individually, rather than jointly, which can impact the total tax liability depending on each spouse's income. In addition to federal income taxes, property owners may also be liable for local taxes and fees related to property ownership and transactions, such as land transfer tax and property tax (Grundsteuer). Understanding the structure of Austrian taxation is essential for non-resident investors to ensure compliance and optimise their real estate investments.
Rental Income Tax
Rental income earned from Austrian properties is subject to progressive income tax rates, applied equally to both residents and non-residents. The taxable rental income is calculated by deducting allowable expenses - such as maintenance costs, property management fees, mortgage interest, and depreciation - from the gross rental income. For non-residents, rental income is taxed at the same rates as residents, but only on income sourced within Austria.
The progressive tax rates for 2024 are as follows (on annual income):
<table> <tbody> <tr> <td>up to €12,816</td> <td>0%</td> </tr> <tr> <td>€12,817 – €20,818</td> <td>20%</td> </tr> <tr> <td>€20,819 – €34,513</td> <td>30%</td> </tr> <tr> <td>€34,514 – €66,612</td> <td>40%</td> </tr> <tr> <td>€66,613 – €99,266</td> <td>48%</td> </tr> <tr> <td>€99,267 – €1,000,000</td> <td>50%</td> </tr> <tr> <td>exceeding €1,000,000</td> <td>55%</td> </tr> </tbody> </table>Allowable Deductions: You can reduce your taxable income by deducting expenses related to the property, such as repairs, depreciation, insurance, and loan interest. Additionally, non-residents should review applicable double taxation treaties between Austria and their home country to avoid being taxed twice on the same rental income.
<table> <tbody> <tr class="blue-row" > <td colspan="3"><strong>Monthly income, €</strong></td> </tr> <tr> <td>1500</td> <td>6000</td> <td>1200</td> </tr> </tbody> <tbody> <tr class="blue-row" > <td colspan="3"><strong>Tax rate, %</strong></td> </tr> <tr> <td>5.76</td> <td>29.36</td> <td>39.30</td> </tr> </tbody> </table>Corporate Taxation
Austria offers a stable and business-friendly environment, with a clear and straightforward corporate tax system. Companies operating in Austria, whether domestic or foreign, are subject to corporate income tax (CIT) on their profits. The corporate income tax rate in Austria is 24% as of 2024, and it is scheduled to decrease to 23% in 2025. This rate applies to both resident companies (taxed on worldwide income) and non-resident companies (taxed only on income sourced within Austria).
Capital Gains Tax
In Austria, capital gains from the sale of real estate or shares are taxed differently based on the type of asset and the date of acquisition. For real estate, properties acquired before April 1, 2002 are subject to a reduced tax rate of 4.2% on the total sale price. Properties purchased after April 1, 2002 are taxed at a standard rate of 30% on the profit (sale price minus purchase price). Exemptions apply if the property was a primary residence for at least 2 consecutive years or 5 years within the last 10 years, or if it was self-constructed and not rented out.
Property Taxes & Transaction Costs – Austria
<section id="taxes" data-country="Austria" data-iso2="AT" data-updated="2025-09-21" data-residence="primary,secondary"> <table> <tbody> <tr class="blue-row" > <td><strong>Description</strong></td> <td><strong>Cost Range</strong></td> <td><strong>Who Pays</strong></td> </tr> <tr data-type="property_transfer_tax" data-rate-min="3.5" data-rate-max="3.5" data-unit="percent" data-payer="buyer"> <td>Property Transfer Tax</td> <td>0.5%-3.5%</td> <td>Buyer</td> </tr> <tr data-type="land_registration_fee" data-rate-min="1.1" data-rate-max="1.1" data-unit="percent" data-payer="buyer"> <td>Land Registration Fee</td> <td>1.1%</td> <td>Buyer</td> </tr> <tr data-type="legal_fees" data-rate-min="1" data-rate-max="3" data-unit="percent" data-payer="buyer"> <td>Legal Fees</td> <td>1%–3%</td> <td>Buyer</td> </tr> <tr data-type="agent_fee" data-rate-min="1.5" data-rate-max="4" data-unit="percent" data-payer="buyer"> <td>Real Estate Agent Fee</td> <td>1.5%–4%</td> <td>Buyer</td> </tr> <tr data-type="notary_fee" data-rate-min="1" data-rate-max="3" data-unit="percent" data-payer="buyer"> <td>Notary Fee</td> <td>1%–3%</td> <td>Buyer</td> </tr> </tbody> </table> </section>Stamp Duty (Rechtsgeschäftsgebühr)
Austria imposes a stamp duty on certain legally predefined transactions, including lease agreements and specific real estate contracts.
Applicable Transactions:
Lease Contracts: Stamp duty is levied on lease agreements, with rates varying based on the contract's specifics.
Other Transactions: Various other legal transactions may also attract stamp duty, depending on their nature and documentation.
Rates:
Lease Contracts: The stamp duty rate for lease contracts is generally 1% of the total rent over the contract's duration.
Other Transactions: Rates can range from 0.8% to 2%, depending on the transaction type.
Payment Responsibility: Typically, the party benefiting from the contract (e.g., the lessee in a lease agreement) is responsible for paying the stamp duty.
Real Estate Tax (Grundsteuer)
Austria levies an annual real estate tax on property owners, calculated based on the assessed value of the property, which is generally lower than its market value.
Calculation Components:
Assessed Value (Einheitswert): Determined by the tax authorities, this value often reflects historical valuations and is typically less than the current market value.
Basic Federal Rate (Steuersatz): A standard rate applied to the assessed value.
Municipal Multiplier (Hebesatz): A coefficient set by individual municipalities that adjusts the tax liability according to local budgetary needs.
Basic Federal Rate:
Standard Rate: 0.2% of the assessed property value.
Municipal Multiplier:
Range: Up to 500%, varying by municipality.
Calculation Example:
Assessed Value: €100,000
Basic Tax: €100,000 × 0.2% = €200
Municipal Multiplier: If set at 400%, the final tax would be €200 × 4 = €800 annually.
Payment Schedule: Real estate tax is typically paid in quarterly instalments, with due dates on February 15, May 15, August 15, and November 15 each year.
Exemptions and Reductions: Certain properties, such as those used for public services or recognised as cultural heritage sites, may qualify for tax exemptions or reductions. Property owners should consult local tax authorities to determine eligibility.
Understanding these taxes is crucial for effective financial planning and compliance with Austrian tax regulations.