Capital gains tax in Austria

What is Austria's capital gains tax regime?

Austria does not have a single unified capital gains tax. Instead, the Einkommensteuergesetz (EStG) applies different special flat rates depending on the type of asset. For most investors the two key rates are the 27.5% Kapitalertragsteuer (KESt) that covers securities, funds, and crypto, and the 30% Immobilienertragsteuer (ImmoESt) that applies to real-estate disposals. A lower 25% rate remains in force for bank-deposit interest. These are final taxes, meaning the gain does not enter the progressive income-tax scale, which tops out at 55% for very high earners. See the Austria country overview for the broader tax framework. Consult a qualified tax professional before acting on any of the information below.

How does the 27.5% KESt apply to shares, bonds, and funds?

Under section 27a EStG, capital gains from shares (listed and unlisted qualifying interests), corporate and government bonds, investment-fund units (including ETFs), and similar financial instruments are taxed at a flat 27.5% rate. The same 27.5% rate covers dividend income and coupon interest on bonds. Where an Austrian custodian bank (Sparkasse, Erste Bank, Raiffeisen, Bank Austria, etc.) holds the securities, it withholds KESt automatically at source and remits it to the tax authority; the investor typically has no further filing obligation for those gains. Investors using foreign brokers must self-assess and declare the income on their annual Einkommensteuererklarung using Beilage E1kv. The 27.5% rate has been in place since 1 January 2016 (raised from 25% by the Steuerreform 2015/2016); for listed securities acquired before 1 April 2012 the pre-reform rules generally treated gains as tax-free (Altvermoegen, see below).

When were crypto assets added to the 27.5% KESt regime?

The Oekosoziale Steuerreform (Eco-Social Tax Reform), effective 1 March 2022, brought cryptocurrencies fully within the 27.5% KESt framework alongside other capital assets. Before that date, crypto gains had been taxed under the general income scale if held for less than one year, and tax-free after one year under the old section 31 private-disposal rule. Assets acquired before 1 March 2021 that had already fulfilled the one-year holding requirement at the time of the reform retained tax-free status (crypto Altvermoegen). From 2022 onwards, exchanges of one cryptocurrency for another are NOT taxable events; only conversion to fiat or goods/services triggers the 27.5% rate. Mining and staking rewards are taxed as ordinary income at inflow. Austrian custodian-registered crypto-asset service providers (CASPs) must withhold KESt on qualifying customer transactions from 1 January 2024.

How does the 30% ImmoESt apply to real-estate disposals?

Section 30 EStG imposes a 30% Immobilienertragsteuer on gains from selling real property (residential, commercial, and qualifying land). The tax has applied since 1 April 2012 at 30% (a 25% rate applied briefly from introduction until the Stabilitaetsgesetz 2012 raised it to 30%). For properties acquired after 31 March 2002 (Neuvermoegen), the taxable gain is the difference between the sale price and the indexed acquisition cost, with qualifying improvement costs deductible. The ImmoESt is usually collected by the notary at settlement as a flat-rate advance payment, with a final settlement possible in the annual return.

What is the Altvermoegen rule for pre-2002 real estate?

Austrian law distinguishes between Neuvermoegen (property acquired after 31 March 2002) and Altvermoegen (acquired on or before that date). For Altvermoegen real estate the legislation assumes that 86% of the sale price represents the original acquisition cost, leaving only 14% as the taxable gain. Applying the 30% ImmoESt to that 14% produces an effective rate of approximately 4.2% of the gross sale price. This significantly reduces the tax burden on long-held property. Example: an Altvermoegen property sold for 800,000 euros produces a taxable gain of 112,000 euros (14%), with ImmoESt of 33,600 euros (4.2% effective) rather than the tens of thousands more that would arise on the full appreciation under the Neuvermoegen rules.

What exemptions reduce or eliminate ImmoESt?

Two main exemptions apply. First, the Hauptwohnsitzbefreiung (principal-residence exemption) under section 30 abs 2 EStG provides a complete ImmoESt waiver if the seller used the property as their registered primary residence either (a) for at least two consecutive years immediately before the sale, or (b) for at least five of the ten years immediately before the sale. The exemption applies regardless of the gain's absolute size. Second, the Herstellerbefreiung exempts gains attributable to a self-built residential structure (the land gain remains taxable). Outside these two reliefs, all real-estate gains are taxable with no time-limit exemption comparable to the German ten-year Spekulationsfrist.

How do loss-offset rules work under KESt?

Capital losses realised within the same calendar year can be offset against capital gains taxed at the same 27.5% rate; for example, a loss on one share sale reduces the taxable gain on another. However, losses cannot be carried forward into future years in the private-investor sphere (unlike the business sphere, where a partial carry-forward exists). Austrian custodian banks perform an automatic annual Verlustausgleich (loss-offsetting) across all custody accounts held at the same bank, issuing a Verlustausgleichsbescheinigung. Losses on Altvermoegen assets (pre-reform, generally tax-free) cannot offset gains on Neuvermoegen assets, and losses in the 27.5% basket cannot offset income taxed at 25% (such as bank-deposit interest) or income in the progressive-rate bands.

Rate comparison: Austria vs selected EU peers

Austria's flat 27.5% is broadly mid-table among EU peers. The Altvermoegen real-estate concession (4.2% effective) is unusually favourable by European standards.

All rates above can change with new legislation. Confirm current rules with a qualified tax professional or the BMF at bmf.gv.at before making any financial decision.