New inheritance tax in 2026?
The risk of a new inheritance tax in Austria in 2026 is higher than it has been for a long time. Find out here at Harlander & Partner what you need to do today to protect your assets and inheritance from government access in the future.
Abolition of inheritance tax 2008
In 2008, the inheritance tax and the gift tax were initially abolished in Austria. The collection of the tax was too complex, the tax revenue too low, and the tax collection was not profitable.
Due to the abolition, no inheritance or gift tax has been levied in Austria since August 1, 2008. However, in the case of inheritances or uncompensated transfers of real estate, the real estate transfer tax and a registration fee must still be paid.
Peter HarlanderHarlander & Partner Rechtsanwälte „In the meantime, however, more and more politicians are thinking intensively about the reintroduction of inheritance tax.“
Reintroduction of inheritance tax 2026?
Austria is in the red. The state and our social system cost more money than is received through taxes and social security contributions. The state would therefore have to save rigorously – a virtue that our governments have never mastered.
Therefore, many politicians are loudly calling for new taxes. But where to take them from?
Companies and labor are already taxed higher in Austria than in almost all countries in the world. A further increase in taxes on companies and employees is therefore considered unthinkable.
Instead, calls for taxing inheritances and gifts are becoming louder. Anyone who has saved something should no longer be allowed to pass it on to their loved ones without deduction.
Peter HarlanderHarlander & Partner Rechtsanwälte „New taxes usually come very quickly. We therefore advise you to transfer assets to your heirs early in order to minimize the risk of a painful loss of assets due to a new inheritance tax. “
Options for Avoiding a New Inheritance Tax
This is how you can avoid a new inheritance tax:
1. Gift agreement
One option would be to gift part of your assets to the future heirs.
With a gift agreement, the donor transfers an item to the donee free of charge, i.e. without receiving anything in return. Anything can be gifted: money, furnishings, apartments, real estate, shares and much more.
A gift is ideal if the donor is no longer dependent on the subject of the gift.
Select Your Preferred Appointment Now:Free initial consultation2. Transfer agreement
A transfer to the future heirs is a second option that often fits better.
In a transfer agreement, assets are transferred from the transferor to the transferee during their lifetime. Here too, the following applies: in principle, any asset can be the subject of a transfer agreement.
Note: However, unlike a gift, the transfer agreement provides for consideration from the transferee.
Common considerations in transfer agreements are:
- Right of Residence
- Usufruct
- Annuity Payments
- Equalization Payments to Unconsidered Siblings
- Care and support services if the transferor needs them
- Support payments in the event of a financial emergency of the transferor
With a transfer agreement, for example, parents can transfer part of their assets to their children during their lifetime and at the same time protect themselves or other children.
Transfer agreements are therefore particularly frequently concluded in the context of corporate succession and the transfer of real estate. However, the transfer of valuable brands, patents, designs, licenses, works of art or other valuables is also conceivable.
Select Your Preferred Appointment Now:Free initial consultation3. Power of attorney
Hardly anyone would think of an enduring power of attorney when avoiding the inheritance tax risk. Nevertheless, an enduring power of attorney can be a good solution for all those who do not wish to transfer their assets yet, but still desire more security.
In an enduring power of attorney, you designate an authorized person who may make decisions for you in the event of loss of legal capacity, insight and judgment, or ability to communicate.
It can also be stipulated that the authorized person may transfer assets to themselves. For their own protection, it can be stipulated in this case that the authorized person then has to pay for the nursing home, for example.
The enduring power of attorney is thus the weakest protection against the risk of an inheritance tax. If it is introduced too quickly, the time for asset transfer may be too short.
Peter HarlanderHarlander & Partner Rechtsanwälte „Take advantage of our free initial consultation to find out more about the options for protecting yourself against a new inheritance tax. We support you in drawing up gift agreements, transfer agreements and powers of attorney. “
