Austrian Property Taxation

Yes. Many new-build developments that are designated for tourist use will allow you to reclaim the 20% VAT from the purchase price. However, there are a few key points that you need to be aware of:

• The VAT rebate is pro-rata over 20 years
• If you sell before then, you should be in ‘profit’ for VAT purposes otherwise you might have a VAT liability.
• Advertised prices for apartments in tourism residences are usually stated as net + VAT.
• You will need to submit a rental forecast to the tax authorities and quarterly VAT returns.
• An Austrian tax account will be able to assist with all this and typically costs around EUR 1,500 / year.
• Sometimes you might need to pay the VAT initially and then reclaim it. In other circumstances, if you have your VAT number in advance, you might be able to just pay the net price from the outset.
• Your agent or immobilien can assist with an introduction to a specialist Austrian tax advisor.

Rental income is taxed as income in Austria and is therefore subject to the same rates as income tax, which in 2025 were as follows:

• €0 - 13,308 = 0%
• €13,308 - 21,617 = 20%
• €21,617 - 35,836 = 30%
• €35,836 - 69,166 = 40%
• €69,166 - 103,072 = 48%
• €103,072 - 1,000,000 = 50%
• above €1,000,000 = 55%

For most second home owners who are non-resident in Austria for tax purposes, the 0% band is reduced to €3,000. A dual taxation agreement exists between Austria and many other countries to ensure that you are not taxed twice on the same income.

Capital gains tax or ‘ImmoESt’ is charged at a flat rate of 30% on any property made when selling a property in Austria.

There are however some exceptions:

1. A property is exempt from capital gains if it has been used as a main residence for at least 5 years of the last ten.
2. Certain properties acquired before March 2002 can be exempt.

Inheritance tax was abolished in Austria in 2008.

If you rent out your Austrian property to guests, they will need to pay a daily tourist tax to the local council or ‘Gemeinde’.

Different resorts impose this tax in different ways. The rate varies but is typically between €0.36 and 3.2% of the cost per night. If you use a local management agent to manage your property they will usually take care of these payments to the will pay to the Gemeinde on a regular basis.