Property Tax Overview in Austria

Austria taxes real property through three structurally independent mechanisms. Understanding each layer separately is the starting point for any property transaction analysis. Consult a qualified tax professional before acting on any specific situation.

What is the annual Grundsteuer and how is it calculated?

Grundsteuer is the annual property levy governed by the Grundsteuergesetz 1955. The calculation chains three factors: Einheitswert x Steuermesszahl x Hebesatz. The Einheitswert (cadastral unit value) is set by the regional Finanzamt under the Bewertungsgesetz 1955 and reflects valuations rooted in the 1972 main assessment cycle -- the result is a figure that sits materially below today's market values. The Steuermesszahl (federal base rate) is a per-mille figure that varies by property class: for a single-family home the rate is 0.5 per mille on the first EUR 3,650 of Einheitswert and 1.0-2.0 per mille on higher bands; for rental or mixed-use buildings the bands start at 1.0 per mille; for commercial and undeveloped land at 1.0 per mille rising to 2.0 per mille (BMF, Grundsteuermessbetrag). The resulting Steuermessbetrag is then multiplied by the Hebesatz -- a municipal multiplier that each Gemeinde (municipality) sets independently up to the statutory ceiling of 500 percent under the Finanzausgleichsgesetz. In practice virtually every municipality applies the full 500 percent ceiling (BMF, Grundsteuer; USP.gv.at, Real estate tax). Amounts above EUR 75 per year are collected in four quarterly instalments on 15 February, 15 May, 15 August, and 15 November; amounts of EUR 75 or less fall due once on 15 May (USP.gv.at). Because the Einheitswert base is so low relative to market prices, effective annual Grundsteuer on a typical Austrian home runs roughly 0.05-0.2 percent of market value -- one of the lightest recurring property-tax burdens in the EU. A pending Grundsteuerreform was deferred again in the 2025 coalition agreement, with any revised cadastral valuation pushed to no earlier than 2027.

Source: BMF, Grundsteuermessbetrag (updated 1 Jaenner 2026).

How is Grunderwerbsteuer (transfer tax) charged when buying Austrian property?

Grunderwerbsteuer (GrESt) under the Grunderwerbsteuergesetz 1987 is a one-time levy on every ownership transfer of Austrian real estate. The standard rate is 3.5 percent of the Bemessungsgrundlage (assessment basis), which is ordinarily the purchase consideration plus any assumed debts and third-party costs paid on the buyer's behalf (BMF, Steuersatz). Where no market-rate consideration exists -- gifts, inheritance, or any transfer within the family circle -- the Grundstueckswert (property value) is used as the minimum base instead of the agreed price. The Grundstueckswert is computed under the Grundstueckswertverordnung using either the Pauschalwertmodell (a formula combining land and building components with age and type adjustments) or the Immobilienpreisspiegel published by Statistics Austria (71.25 percent of the derived market value figure), with the taxpayer free to choose whichever method produces the lower result (BMF, Bemessungsgrundlage). Agricultural and forestry land uses the older Einheitswert rather than the Grundstueckswert.

For transfers within close family -- spouses, registered partners, children, grandchildren, parents, siblings, in-laws, and their spouses -- a tiered Stufentarif replaces the flat 3.5 percent: 0.5 percent on the first EUR 250,000; 2 percent on the next EUR 150,000 (i.e. EUR 250,001 to EUR 400,000); and 3.5 percent on any amount above EUR 400,000 (BMF, Steuersatz). This graduated scale applies once per acquiring person within a five-year aggregation window across multiple transfers from the same transferor, and covers inheritance, gift, divorce-settlement, and intra-family purchase transactions alike. Agricultural and forestry land transferred within the family is instead taxed at a flat 2 percent on the Einheitswert.

The 1.1 percent Eintragungsgebuehr (land-register entry fee) is charged separately on registration of the ownership change in the Grundbuch (land register); for a mortgage lien (Hypothek) an additional 1.2 percent of the loan amount applies. A temporary waiver of the Eintragungsgebuehr was available for primary-residence purchases submitted between 1 July 2024 and 1 July 2026 where the property value does not exceed EUR 500,000 (USP.gv.at, Grunderwerbsteuer).

The Austrian notary (Notar) typically handles the Selbstberechnung (self-assessment) -- the Notar computes the GrESt and remits it directly to the Finanzamt as part of the conveyancing process, which keeps the transaction timeline tidy.

What is the ImmoESt 30% tax on property sale gains?

Immobilienertragsteuer (ImmoESt) under Paragraph 30 EStG 1988 taxes capital gains from the disposal of Austrian real estate at a flat 30 percent Sondersteuer on the realised gain (proceeds minus acquisition cost minus capitalised improvements). This Neuvermoegens rate applies to all properties acquired on or after 1 April 2012 regardless of the holding period -- there is no long-term exemption that phases down the rate over time (vigoimmobilien.at, PwC Austria). For Altvermoegen (properties acquired before 1 April 2012) the taxable gain is deemed to be 14 percent of the gross disposal proceeds; applying the 30 percent rate to that deemed figure produces an effective rate of 4.2 percent on gross proceeds (14% x 30%). The taxpayer may elect actual-cost computation under Paragraph 30 Abs 4 Z 2 EStG where the real gain is lower than the 14 percent pauschal -- relevant for inherited properties with high stepped-up acquisition cost.

A Hauptwohnsitzbefreiung (primary-residence exemption) applies where the seller has used the property as registered principal residence (Hauptwohnsitz) for either: (a) a continuous period of at least 2 years immediately before disposal, or (b) at least 5 years during the 10-year period preceding disposal combined with at least 5 years of ownership. The exemption covers the dwelling plus surrounding land up to 1,000 m2. A separate Herstellerbefreiung exempts gains on self-built buildings (Bauherr status required -- buying off-plan from a developer does not qualify) for the building component only; the underlying land gain remains taxable.

From 1 July 2025, a new rezoning surcharge applies: where agricultural land (Gruenland) was rezoned to development land (Bauland) after 31 December 2024, an additional 30 percent surcharge is added to the gain attributable to the land component on any subsequent disposal (vigoimmobilien.at, WTS Austria). Cross-reference the Austria country overview for income-tax rates that apply to rental income and to gains falling outside the flat ImmoESt regime. For disposal-gain computations involving foreign-source proceeds or currency conversion, a qualified tax professional can coordinate the technical filing alongside any multi-currency settlement needs.

Does Austria levy a recurring wealth tax on real property?

No. Austria abolished its general Vermoegensteuer (wealth tax) from 1 January 1994 following Constitutional Court rulings that the Einheitswert-based valuation framework was incompatible with the Gleichheitsgrundsatz (equality principle). Periodic coalition proposals to reintroduce a wealth tax have not been enacted as of 2026. Property held in Austria therefore carries no annual net-wealth levy on top of the Grundsteuer (PwC Worldwide Tax Summaries, Austria; taxatlas.io, Austria Tax Rates). This distinguishes Austria from Norway (which retains a 1.1 percent formueskat) and Switzerland (which levies cantonal Vermoegenssteuer), though both peer jurisdictions apply favourable inclusion rates on primary residences.

What does property disposal cost look like in total?

For a full picture of Austria's income-tax rates on rental income and other investment returns, see the Austria country overview. Transaction-specific analysis -- especially for family transfers, cross-border purchases, and disposals involving foreign sellers -- requires input from a qualified tax professional familiar with Austrian property law and the GrESt Selbstberechnung process.