Inheritance Tax

Inheritance Tax
Possible return of inheritance tax
- Options for avoiding inheritance tax
Your Benefits with Legal Assistance
Frequently Asked Questions – FAQ

Inheritance Tax

For inheritances after August 1, 2008, Austria no inheritance or gift tax is levied. However, in the case of inheritances or gratuitous transfers of land, real estate transfer tax and a registration fee are still payable. In addition, a legal obligation to report donations has been in force since this date. In Germany, on the other hand, inheritance tax still exists.

For inheritances after July 31, 2008, no inheritance tax is levied in Austria.

No inheritance tax in Austria since 2008 – however, property transfer tax, registration fee and reporting obligation for donations must be observed.

Possible Return of Inheritance Tax

In Austria, inheritance tax could be reintroduced in the future. However, those who plan their estate in good time can take steps in advance to avoid this tax altogether or at least reduce it significantly.

Options for Avoiding Inheritance Tax

In order to prevent a possible future inheritance tax, legal arrangements such as a power of attorney, a transfer agreement or a donation agreement are available, with which assets can be transferred early and in an orderly manner.

Your Benefits with Legal Assistance

The regulations surrounding inheritances and gratuitous transfers are complex and harbor considerable financial risks. Unclear legal terms, high ancillary costs such as real estate transfer tax and registration fees, as well as strict reporting and deadline requirements can easily lead to errors.

Economically, this can lead to unexpected burdens or liquidity bottlenecks. Professional legal support ensures that all steps are legally compliant and unnecessary costs are avoided.

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Frequently Asked Questions – FAQ

Is there currently an inheritance tax in Austria?

No. For inheritances after August 1, 2008, no inheritance or gift tax is levied in Austria. However, real estate transfer tax and a registration fee are still payable for gratuitous transfers of real estate.

Can inheritance tax be reintroduced in Austria?

Yes, it is possible that inheritance tax will be reintroduced in the future. However, early estate planning, for example with a power of attorney, transfer agreement or donation agreement, can avoid or reduce a future tax burden.

Do I have to report donations in Austria?

Yes. Since August 1, 2008, there has been a legal obligation to report certain donations. Failure to comply may result in heavy fines.

What is the difference between real estate transfer tax and registration fee?

Real estate transfer tax is a tax on the acquisition of real estate, which is also incurred in the case of gratuitous transfers. The registration fee is a separate fee for the registration of the ownership in the land register.