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Austria Wealth Tax Guide (No Vermögensteuer)

Austria does not levy a net wealth tax (Vermögensteuer). The wealth tax was abolished in the 1990s, and no subsequent government has reintroduced it. Austria also abolished inheritance and gift taxes in 2008. The Austrian tax system relies on income taxes, VAT, and recurrent property taxes rather than annual wealth levies.

Austria is among the European countries with no net wealth tax — alongside Germany, Sweden, Denmark, and Belgium. The absence of a wealth tax (Vermögensteuer) makes Austria attractive for high-net-worth individuals, though other taxes (income tax up to 55%, real estate transfer tax of 3.5%, and KESt at 27.5%) still apply to investment income and asset transactions. For related reading, see our Capital Gains Guide → and Property Tax Guide →.

History of the Abolished Wealth Tax

  • Abolished in the 1990s: Austria's wealth tax (Vermögensteuer) was abolished effective from 1994. The tax had been levied on the net wealth of individuals and corporations at rates of up to 1% on assets exceeding certain thresholds. The abolition was part of a broader tax reform aimed at simplifying the tax system and improving Austria's competitiveness as a business location.
  • Constitutional challenges: The wealth tax was abolished partly due to constitutional concerns about the valuation of different asset classes. The tax treated liquid financial assets (which are easily valued) more harshly than business assets or real estate (which were often undervalued). The German Constitutional Court's landmark ruling in 1995 (declaring the German wealth tax unconstitutional due to unequal valuation) reinforced Austria's decision to keep the tax abolished.
  • No reintroduction despite political debate: Since the 1990s, there have been periodic political debates about reintroducing a wealth tax — particularly during election cycles and economic crises. Left-leaning parties (SPÖ, Greens) have occasionally proposed a Vermögensteuer on high net worth, but no government has implemented such a tax. The current coalition government (2026) has no active plans to reintroduce a net wealth tax.

Current Tax Environment for Wealthy Individuals

  • No annual wealth tax: There is no annual tax on net wealth — no tax on savings, investment portfolios, real estate holdings (beyond the Grundsteuer property tax), or business assets. This makes Austria a tax-favourable jurisdiction for asset accumulation.
  • Taxes that do apply: (a) Einkommensteuer up to 55% on earned income, (b) KESt at 27.5% on capital gains and investment income (shares, dividends, interest, fund distributions), (c) Grundsteuer at approximately 0.5–1% on property assessed value, (d) Grunderwerbsteuer at 3.5% on real estate transfers, (e) ImmoESt at 30% on realised property gains, and (f) social security contributions of approximately 12–18% on employment income (employee share).
  • No exit tax: Austria does not impose an exit tax (Wegzugsbesteuerung) on individuals relocating abroad, unlike some other European countries (Germany, Netherlands, Spain). However, since 2015, there is a limited exit tax on certain corporate migrations and asset transfers under EU anti-avoidance rules.
  • No inheritance or gift tax: As discussed in our Inheritance and Gift Guide →, both taxes were abolished effective August 1, 2008. The only exception is that the heir assumes the tax liabilities of the deceased (including potential income tax on accrued gains if the assets are sold later).

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