Austria Capital Gains Tax Guide (KESt 2026)
Austria imposes Kapitalertragsteuer (KESt) as a flat 27.5% withholding tax on capital gains from shares, funds, ETFs, derivatives, and dividends. A higher rate of 30% applies to certain bonds and bank interest. Real estate gains for private individuals are tax-free if the property was held for more than 10 years. All amounts in EUR (de-AT locale).
The KESt system was reformed in recent years, shifting from an accrual-based taxation of funds to a realisation-based system. Most capital gains are now taxed at source — your Austrian bank or broker withholds the tax and remits it to the Finanzamt. For related reading, see our Investment Income Guide → and Personal Tax Guide →.
KESt (Kapitalertragsteuer) — Rates and Scope
- 27.5% standard rate: Capital gains from the sale of shares, ETFs, mutual funds, derivatives (options, futures), and other securities are taxed at 27.5%. This rate also applies to dividends, fund distributions, and income from investment funds.
- 30% rate for certain bonds and bank interest: Interest income from bank deposits, savings accounts, bonds, and other fixed-income instruments is taxed at 30% (not 27.5%). This includes interest on Austrian and foreign bonds, bank interest (Zinserträge), and income from debt securities. The rationale is that interest income was previously taxed at the progressive income tax rate — the 30% KESt is a simplification that is often lower than the top marginal rate.
- Withholding at source: Austrian banks and brokers act as withholding agents. They deduct KESt automatically before crediting the gain or income to your account. The tax is considered final (endbesteuert) — you generally do not need to declare these gains on your income tax return unless: (a) you use a foreign broker, (b) you have capital losses to offset, or (c) you want to claim a refund of overpaid KESt.
- No annual allowance (Sparerfreibetrag): Unlike Germany (which has a Sparerpauschbetrag of €1,000), Austria does not have a general tax-free allowance for capital gains. The first euro of gain is taxable. However, the first €730 of interest income was historically exempt (Sparerfreibetrag) — this was abolished in 2016.
Real Estate Capital Gains
- 10-year holding period exemption: For private individuals (Privatvermögen), gains from the sale of real estate are tax-free if the property was held for more than 10 years. This is the Spekulationsfrist (speculation period) for real estate. If the property is sold within 10 years of acquisition, the gain is subject to ImmoESt at 30% (see our Property Tax Guide →).
- Primary residence exemption: The sale of a primary residence (Hauptwohnsitz) is always tax-free, regardless of holding period, if the owner occupied it for at least 2 years before the sale.
- Business real estate: If the property was used as a business asset (Betriebsvermögen), the 10-year exemption does not apply. Gains are taxed at 30% (ImmoESt) — or at the progressive income tax rate if the taxpayer opts for this (which may be beneficial if the rate is below 30%).
Loss Offsetting
- Loss compensation (Verlustausgleich): Capital losses on shares can only be offset against capital gains on shares (Aktienverlusttopf). Losses on other securities (funds, bonds, ETFs) can be offset against gains on other securities within the same asset class. Each broker maintains separate loss pools (Verlusttöpfe) for you.
- Carry-forward: Unused capital losses can be carried forward to future years indefinitely. However, losses cannot be carried back to prior years.
- No offset against other income: Capital losses cannot be offset against other types of income (salary, rental income, business income). They can only be offset against capital gains.