Taxes and Fees

When purchasing a condominium, certain taxes and fees are payable. These are listed and explained in detail below.

Real Estate Capital Gains Tax (ImmoESt)

The real estate capital gains tax is a tax payable by the seller.

Tax Rate

As a rule, sales of private properties are subject to a special tax rate of 30 percent. The real estate capital gains tax is calculated in the form of a purchase agreement within our law firm.

Exemptions from Real Estate Capital Gains Tax

Primary Residence Exemption

The sale of a condominium as a primary residence is tax-exempt for the seller under certain circumstances. The seller must have continuously resided in it for at least two years from the time of purchase until the sale. Alternatively, the exemption also applies if the seller has continuously resided in it for at least 5 years within the last 10 years prior to the sale.

Builder’s Exemption

For a self-built property, such as a secondary residence, a tax exemption applies only to the building itself and not to the land.

Different Tax Rate

The tax rate differs for new properties (acquired from March 31, 2002) and old properties (acquired before March 31, 2002).

For old properties, a tax rate of 4.2% of the sales proceeds is applied. For old properties re-zoned as building land, the tax rate is 18% of the sales proceeds.

For new properties, the provisions for the special tax rate apply.

Real Estate Transfer Tax (GrESt)

The real estate transfer tax covers the acquisition of properties within Austria. Properties within the meaning of the GrESt Act are understood to be:

Land
Buildings
Appurtenances and accessories, such as car tires for a car, or a tractor for a farm

The GrESt is the counterpart to the ImmoESt and is to be paid by the buyer.

Assessment Basis for GrESt

Three different values are considered for the assessment basis:

Value of Consideration

As a rule, the GrESt is assessed based on the value of the consideration (purchase price) plus any assumed obligations such as debts or usufruct rights.

Property Value

Since there is no consideration (purchase price) in the case of a gift or inheritance, the property value is determined in these cases and used as the assessment basis for the GrESt.

Standard Value

The assessment basis using a standard value is intended for the acquisition of agricultural and forestry properties.

Exemptions from Real Estate Transfer Tax in the Private Sector

Exempt from GrESt is the gratuitous acquisition of a shared residence by a partner in a marriage or registered partnership. This requires the following conditions:

Both partners must have an equal share in the apartment. Therefore, a half share must be transferred to the other partner.
The apartment must serve the urgent housing needs of the partner.
The previous shared apartment must be given up.
The occupancy of the apartment must take place within three months of acquisition/completion.
The ownership structure must not change within the first five years. The apartment must also be occupied during this period.

Rates

Acquisitions for Consideration

The real estate transfer tax for acquisitions for consideration is generally 3.5% of the assessment basis.

Gratuitous Acquisitions and Acquisitions within the Family Circle

For gratuitous acquisitions, such as gifts, as well as for acquisitions for consideration within the family circle, a tiered rate applies. These acquisitions are treated preferentially.

The tax in this case is:

For the first €250,000: 0.5%
For the next €150,000: 2%
From €400,000: 3.5%

Tax Liability

A tax liability arises as soon as the acquisition process is completed. The acquisition process or the underlying obligation in this case is the purchase agreement. The seller and the buyer become tax debtors, as they are the parties involved in the purchase agreement.

The tax liability becomes due on the 15th of the second month following its incurrence.

Certificate of No Objection according to § 160 BAO

A certificate of no objection is necessary for registration in the land register in connection with the acquisition of ownership. This must be obtained from the competent tax office and certifies that the real estate transfer tax has been paid.

Registration Fees

The registration fees for a condominium amount to 1.1% of the total purchase price.

For acquisitions for consideration as well as gratuitous acquisitions within the family circle, the registration fee is assessed based on three times the standard value (at most one-third of the market value).

The filing fees for the land register additionally amount to €47.00 if submitted electronically. The written filing fee is €67.00.