Gift Tax
Gift Tax
For decades, the gift tax in Austria was an instrument of taxation when assets were transferred gratuitously from one person to another. It was intended to ensure that gratuitous transfers of money, real estate or securities were also subject to tax. The gift tax was abolished on August 1, 2008. Nevertheless, there are still important obligations today that must be observed with every gift.
There is no gift tax in Austria anymore. However, other taxes such as real estate transfer tax or the statutory reporting obligation may become relevant.
Abolition of the Gift Tax
Since 2008, there has been no gift tax in Austria. This means that pure cash gifts between parents and children or between spouses are generally tax-free. This development distinguishes Austria from many other European countries where gift taxes continue to exist. Nevertheless, beneficiaries must not assume that every transfer of assets remains “tax-free and without consequences.”
Sebastian RiedlmairHarlander & Partner Attorneys „Eine sorgfältige Schenkungsplanung vermeidet nicht nur steuerliche Nachteile, sondern schützt auch vor späteren Streitigkeiten innerhalb der Familie.“
Real Estate Transfer Tax on Real Estate Gifts
As soon as someone gifts real estate, the tax office levies real estate transfer tax and calculates it according to the so-called property value.
The tax office also taxes gratuitous transfers of real estate and, if applicable, levies registration fees in the land register.
Read more about real estate transfer tax here:
Select Your Preferred Appointment Now:Free initial consultationReporting Obligation
The reporting obligation only applies to gifts inter vivos and conditional donations inter vivos (e.g. if a gift is tied to a specific condition).
Not covered are gifts upon death and property transfers. Properties are subject to real estate transfer tax, so there is a separate reporting obligation there.
Assets Subject to Reporting
A reporting obligation exists in particular for:
- Cash
- Capital claims (savings books, bonds, loans)
- Shares in corporations and partnerships (GmbH, AG, OG, KG)
- Participations as silent partners
- Businesses or parts of businesses (including agriculture and forestry)
- Movable assets such as motor vehicles, jewelry, precious stones, boats
- Intangible assets such as copyrights, concessions, residential and usufructuary rights or merchandise vouchers
General Reporting Obligation
Anyone who gifts such assets must report them to the tax office as soon as the value reaches €15,000 within five years.
Increased Limit for Relatives
Between close relatives (e.g. parents, children, spouses, siblings, grandparents, grandchildren, uncles, aunts, nephews, nieces, cousins, in-laws, partners and their children), the limit is €50,000 per year.
The calculation is made per donor-donee pair. Several gifts from the same person to the same person must be added together.
Valuation of the Gift
- Obvious values such as cash, stocks or savings books are stated directly.
- Non-obvious values (e.g. used items) may be estimated – an expert opinion is not necessary.
- Even for businesses or company shares, an estimate of the fair value is sufficient; a company valuation is not required.
Deadlines and Procedures
The report must be submitted within three months. The relevant date is the acquisition with which the value limit is exceeded for the first time.
The notification is generally made via FinanzOnline (§ 121a BAO).
Exceptions to the Reporting Obligation
Not every donation has to be reported. The following are specifically excluded:
- usual occasional gifts (e.g. birthday or Matura gifts up to €1,000 per year)
- Household goods, clothing and everyday objects
- Donations for residential purposes between spouses up to a certain apartment size
- Donations to non-profit organizations
There is no separate reporting obligation for real estate, as the tax office automatically receives knowledge through the real estate transfer tax.
Group of Persons with Reporting Obligations
The following are obliged to report:
- Donor and donee,
- Person liable in the case of conditional donations,
- as well as notaries or lawyers if they are involved in the donation.
It is sufficient if one of the obligated persons submits the report in good time; the reporting obligation of the others is then waived.
Sanctions for Violations
If the report is not submitted, there may be a reversal of the burden of proof: The tax office then assumes that it was not a gift, and the person concerned must prove the contrary.
In the event of intentional failure to report, a fine of up to 10% of the fair value of the gift is threatened.
A voluntary disclosure within one year of the expiry of the three-month period has a liberating effect if the missed report is made up for.
Peter HarlanderHarlander & Partner Rechtsanwälte „Gerade bei größeren Vermögensübertragungen ist die fristgerechte Meldung entscheidend, um Strafen und Beweislastumkehr sicher zu vermeiden.“
Your Benefits with Legal Assistance
Our specialized law firm fulfills all obligations in good time, calculates the tax implications precisely and structures contracts in such a way that your interests are best protected. We accompany you through the entire process, from the initial analysis to the implementation, and ensure that you do not miss any deadlines or reporting obligations.
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