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Austria Property Tax Guide (Grundsteuer, Grunderwerbsteuer, ImmoESt 2026)

Property in Austria is subject to three main taxes: (1) Grundsteuer (land tax) at approximately 0.5–1% of the Einheitswert (assessed value) annually, (2) Grunderwerbsteuer at 3.5% of the purchase price on acquisitions, and (3) ImmoESt at 30% on realised gains from property sales. A reform of the Grundsteuer system (Grundsteuer-Reform) is underway. All amounts in EUR (de-AT locale).

Property taxation in Austria involves recurring annual taxes, transactional purchase taxes, and a tax on realised gains. The system is complex because it uses outdated assessed values (Einheitswerte) for the Grundsteuer. For related reading, see our Capital Gains Guide → and Inheritance and Gift Guide →.

Grundsteuer (Recurrent Land Tax)

  • Annual tax on land and buildings: Grundsteuer is an annual municipal tax imposed on all real estate (land, buildings, and apartments) in Austria. The tax is paid by the property owner. The calculation uses a multi-step formula: Einheitswert (assessed value) × Steuermesszahl (tax assessment number) × Hebesatz (municipal multiplier).
  • Effective rate of 0.5–1%: The combined effect of the formula yields an effective tax rate of approximately 0.5% to 1% of the Einheitswert per year. However, since the Einheitswert is often far below market value (the assessed values were last updated in 2014 for some property types, and in the eastern states in 1988 for many others), the effective rate as a percentage of market value is usually much lower — often 0.05%–0.2%.
  • Grundsteuer-Reform (ongoing): Austria is in the process of reforming the Grundsteuer system. A constitutional court ruling (VfGH 2021) found the Einheitswert system unconstitutional because it discriminates between property types. The reform will update the valuation basis to a current-value approach. As of 2026, the transition timeline is still being debated — the deadline for implementation has been extended.
  • Deductibility: Grundsteuer is deductible as a business expense for rental properties and investment real estate. For owner-occupied homes, it is a personal expense and not deductible.

Grunderwerbsteuer (Real Estate Transfer Tax)

  • 3.5% rate (standard): Grunderwerbsteuer (GrESt) is payable on the acquisition of real estate in Austria. The standard rate is 3.5% of the purchase price (or the assessed value, whichever is higher). The tax is paid by the purchaser and is due at the time of the notarial deed (Kaufvertrag) before the transfer can be registered in the land register (Grundbuch).
  • Reduced rates for family transfers: Transfers between close family members (spouses, children, grandchildren, parents, grandparents) may qualify for reduced rates: (a) 2% for transfers between parents and children (including gifts), (b) 0.5% for transfers between spouses and registered partners, (c) 3.5% for transfers between siblings and more distant relatives (no special reduction). These reduced rates apply to the assessed value (Einheitswert) rather than the market value — which is usually much lower.
  • Exemptions: Certain transactions are exempt from GrESt: (a) inheritance and gift acquisitions (since 2008 — see our Inheritance and Gift Guide →), (b) corporate reorganisations (mergers, demergers, contributions-in-kind) under the UmgrStG, (c) first-time home purchases by young families under certain state programmes (Wohnbauförderung) may qualify for partial or full exemptions depending on the Bundesland.

ImmoESt — Tax on Real Estate Gains

  • 30% flat rate (ImmoESt): Gains from the sale of real estate are subject to the Immobilienertragsteuer (ImmoESt) at a flat rate of 30%. This applies to both private individuals and businesses. The gain is calculated as: selling price − (acquisition costs + allowable expenses + indexation adjustment for long-held properties).
  • Primary residence exemption: No ImmoESt is due on the sale of a primary residence (Hauptwohnsitz) if: (a) the owner has used the property as a principal residence for at least 2 years before the sale, or (b) the sale occurs within the first year of moving out (12-month grace period). This exemption applies only to one property at a time (the main residence).
  • No private capital gains tax for holding >10 years: For private individuals, if the property was held for more than 10 years before the sale, the gain is not subject to ImmoESt. This is because real estate held privately is not subject to capital gains tax under the general income tax rules if the holding period exceeds 10 years (the so-called Spekulationsfrist). However, if the property was used as a business asset at any time, different rules apply.
  • Self-occupied and rental property: The 30% ImmoESt applies to: (a) sale of rental properties (held for any period), (b) sale of second homes, (c) sale of business real estate (betrieblich genutzte Grundstücke). For business properties, the gain is taxed at the corporate rate (23%) or the individual rate (progressive up to 55%) rather than the flat 30% if the property is classified as business inventory (Betriebsvermögen) — the taxpayer can opt for the 30% flat rate instead (which is often favourable for high earners).

Other Property-Related Taxes

  • Municipal charges: Kommunalabgaben include garbage collection, sewage, and water supply charges. These are typically set by the municipality (Gemeinde) based on the property size or unit count and range from €200 to €800 per year.
  • Rental income taxation: Rental income from property is taxed as part of the owner's progressive Einkommensteuer (up to 55%). Mortgage interest, maintenance, management fees, Grundsteuer, and depreciation (Afa at 1.5% for residential, 3% for commercial) are deductible.
  • Wohnbauförderung (housing subsidy): Buyers who use government-subsidised housing loans (Wohnbauförderung) may benefit from reduced interest rates and tax benefits. The specific rules vary by Bundesland (province).

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