Is there an inheritance tax in Austria in 2026?

No. Austria abolished its inheritance and gift tax (Erbschafts- und Schenkungssteuer) effective 1 August 2008 following a Constitutional Court ruling that struck down the law as unconstitutional. No inheritance, estate, or gift tax has applied since that date. Real estate transfers remain subject to real estate transfer tax and a land register entry fee.

What tax applies when inheriting a house in Austria?

Real estate inherited or received as a gift is subject to Grunderwerbsteuer at a sliding scale: 0.5% on the first EUR 250,000 of property value, 2% on the next EUR 150,000 (up to EUR 400,000), and 3.5% on any amount above EUR 400,000, for transfers within the eligible family circle. A further 1.1% land register entry fee applies in all cases.

What is the Schenkungsmeldung and who must file it?

The Schenkungsmeldung is a gift notification (not a tax) required under paragraph 121a BAO when gifts between family members exceed EUR 50,000 in a calendar year, or gifts to non-family recipients exceed EUR 15,000 over five years. The donor, recipient, or involved notary must file Form Schenk1 via FinanzOnline within three months. Real estate gifts are excluded -- they are handled via the real estate transfer tax process.

Why did Austria abolish its inheritance tax?

Austria's Constitutional Court ruled in 2007 that the inheritance and gift tax law was unconstitutional because it assessed real estate at outdated 1973 cadastral values while applying current market values to financial assets. This created unequal treatment between asset classes in violation of the constitutional equality principle. Parliament chose abolition over reform, repealing the law with effect from 1 August 2008.

Is Austria likely to reintroduce an inheritance tax?

There is no formal proposal to reintroduce inheritance tax as of mid-2026. Individual SPO politicians have raised the idea, but the ÖVP, NEOS, and FPO -- all coalition parties in the 2025-2029 government -- have stated their opposition. Any reintroduction would also face significant constitutional hurdles around consistent asset valuation. This item should be treated as a politically proposed debate point, not an enacted or imminent change.

Inheritance and Estate Tax in Austria — Rates, Rules & Filing

Does Austria have an inheritance or estate tax?

No. Austria abolished its Erbschafts- und Schenkungssteuer (inheritance and gift tax) effective 1 August 2008. The Constitutional Court (Verfassungsgerichtshof) issued rulings on 7 March 2007 and 15 June 2007 declaring the existing law unconstitutional. The court found that real estate was assessed using outdated cadastral values from 1973, while financial assets were assessed at current market value -- a violation of the constitutional equality principle (Gleichheitsgrundsatz, Article 7 B-VG). Rather than reform the valuation rules, parliament repealed the entire law (BGBl. I Nr. 39/2008). No inheritance, estate, or gift tax has been levied in Austria since that date, as confirmed by the Austrian Federal Ministry of Finance (Bundesministerium fur Finanzen, BMF) and independently verified by PwC Austria in its January 2026 tax review.[1][2]

What taxes apply when real estate is inherited or gifted?

While there is no inheritance tax, transferring real estate -- whether by death or gift -- triggers two costs under separate laws.

First, Grunderwerbsteuer (real estate transfer tax) applies under the Grunderwerbsteuergesetz 1987. The assessment base for non-arm's-length transfers such as inheritance and gifts is the Grundstuckswert (property value calculated under the Grundstuckswertverordnung 2016, using a standardised formula rather than the full sale price). Within the eligible family circle -- spouses, registered partners, children, grandchildren, parents, and siblings -- a sliding preferential scale applies. For all other recipients, the flat rate of 3.5% applies.

Second, a Grundbuch Eintragungsgebühr (land register entry fee) of 1.1% of the property value is due whenever a change of ownership is registered in the Austrian Land Register. This fee applies to all transfers, including those by inheritance or gift.[3]

Grundstuckswert Band (EUR)	Family Rate	All Others
0 -- 250,000	0.5%	3.5%
250,001 -- 400,000	2.0%	3.5%
Above 400,000	3.5%	3.5%
Land register entry fee (all cases)	1.1%	1.1%

Note: rates apply to each band separately; the higher rate is not applied to the full value. A family-line transfer valued at EUR 350,000 would incur (EUR 250,000 x 0.5%) + (EUR 100,000 x 2%) = EUR 1,250 + EUR 2,000 = EUR 3,250 in Grunderwerbsteuer, plus EUR 3,850 in land register fees.

What is the Schenkungsmeldung gift-reporting obligation?

Austria replaced its old gift tax with a Schenkungsmeldung (gift notification) under paragraph 121a of the Bundesabgabenordnung (BAO, Federal Tax Code). This is a reporting requirement, not a tax: no money is owed to the government simply because a gift is reported.

The obligation applies when:

Gifts between family members exceed EUR 50,000 in total within any calendar year; or
Gifts between non-family recipients exceed EUR 15,000 in total within any five-year period.

The donor, the recipient, and any notary or attorney involved in the transfer are each required to file Form Schenk1 electronically via FinanzOnline within three months of the gift being made. Filing by any one party satisfies the obligation for all others. Failure to report constitutes a financial offence under paragraph 49a of the Finanzstrafgesetz (FinStrG), carrying a fine of up to 10% of the gift value.[4]

Important exception: real estate gifts are excluded from the Schenkungsmeldung. They are handled instead through the Grunderwerbsteuer process described above, managed by the Notar as part of the transfer formalities.

Could inheritance tax be reintroduced in Austria?

Political debate over reintroducing an inheritance or wealth tax resurfaces periodically. Individual members of the SPO (Social Democrats) have publicly raised the idea of a public referendum on reintroduction. However, the ÖVP, NEOS, and FPO -- all members of the 2025-2029 coalition -- have stated they oppose any inheritance or wealth tax. No formal legislative proposal for reintroduction has been tabled as of mid-2026. Any future reintroduction would also face the constitutional valuation problem that caused the 2008 abolition in the first place, since the Austrian Constitutional Court would require consistent valuation methodology across asset classes. This debate is ongoing but there is no enacted or formally proposed law at this time.[5]

What practical steps apply for an Austrian estate?

Every Austrian succession -- regardless of whether real estate is involved -- requires a formal Verlassenschaftsverfahren (probate procedure) under the Aussersteitgesetz, administered by a Gerichtskommissar (typically a local Notar). The Notar prepares an asset inventory, settles outstanding debts, and completes the final Einantwortung (judicial transfer to heirs). There is no informal inheritance route.

For cross-border estates involving assets in multiple EU member states, the EU Succession Regulation (Regulation (EU) 650/2012, Brussels IV) determines which country's law governs and a European Certificate of Succession facilitates recognition of Austrian heirship across the EU.

For more background on Austria's overall tax framework, see the Austria country overview. Because Austrian estate administration combines notarial, civil law, and tax considerations specific to each estate's facts, individuals facing an Austrian succession should consult a qualified tax professional and a licensed Notar before taking any action.

Inheritance and Estate Tax in Austria

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