Is there inheritance tax in Austria? What you still pay when inheriting property
Author: Mag. Nevena Shotekova-Zöchling, Attorney and insolvency administrator in Vienna · No, inheritance and gift tax has not been levied in Austria since 1 August 2008. However, anyone who inherits real estate pays real estate transfer tax (Grunderwerbsteuer) at the tiered rate (Stufentarif) on the property value (0.5 % / 2 % / 3.5 %) and the land register (Grundbuch) entry fee (Eintragungsgebühr) of 1.1 %. On a later sale, real estate income tax (Immobilienertragsteuer) of 30 % may also be payable.
Key facts
- Austria has not levied inheritance or gift tax since 1 August 2008.
- Anyone who inherits real estate in Austria pays real estate transfer tax at tiered rates of 0.5 %, 2 % and 3.5 % on the property value (§ 7 GrEStG), plus a 1.1 % land register entry fee.
- The tiered transfer tax rate on inheritance applies to all heirs, not only to children or spouses.
- Within the family, the land register entry fee is calculated on three times the assessed value, but at most on 30 % of the property's value (§ 26a GGG); the relief must be applied for.
- On a later sale of inherited property, real estate income tax of 30 % may be payable; the deceased's acquisition date and costs apply.
Real estate transfer tax: the tiered rate
An acquisition upon death is treated as gratuitous. The basis of assessment is therefore not the market value (Verkehrswert) but the property value (Grundstückswert) (§ 4 GrEStG). It is determined using the flat-rate value model (Pauschalwertmodell), the real estate price index (Immobilienpreisspiegel) or an expert valuation. The tax is (§ 7 GrEStG):
| Portion of the property value | Tax rate |
|---|---|
| the first € 250,000 | 0.5 % |
| the next € 150,000 | 2 % |
| everything above € 400,000 | 3.5 % |
The tiered rate applies to all heirs, not only to children or spouses. Separate rules apply to agricultural and forestry land (assessed value, Einheitswert).
Land register entry fee: 1.1 %
For entering your ownership, the court charges 1.1 % (TP 9 GGG). Within the family, the basis of assessment is favourable: what counts is three times the assessed value, but at most 30 % of the value of the property (§ 26a GGG). Eligible are, for example, spouses, registered partners, unmarried partners with a shared main residence, relatives in the direct line, step-, adopted and foster children, siblings, nieces and nephews. The relief must be applied for.
Worked example: daughter inherits a condominium apartment
Property value € 450,000, three times the assessed value assumed at € 60,000:
| Item | Calculation | Amount |
|---|---|---|
| Transfer tax tier 1 | 0.5 % of € 250,000 | € 1,250 |
| Transfer tax tier 2 | 2 % of € 150,000 | € 3,000 |
| Transfer tax tier 3 | 3.5 % of € 50,000 | € 1,750 |
| Entry fee | 1.1 % of € 60,000 | € 660 |
| Total | € 6,660 |
Added to this are the costs of the probate proceedings (Verlassenschaftsverfahren; court commissioner).
Later sale: real estate income tax
If you sell the inherited property, the deceased's acquisition date and acquisition costs apply. The gain is taxed at 30 %. If the deceased acquired the property before 1 April 2002 (old assets, Altvermögen), the tax is a flat 4.2 % of the sale proceeds, or 18 % in the case of rezoning after 1987.
The main residence exemption (Hauptwohnsitzbefreiung) requires that you yourself had your main residence there: continuously for two years since acquisition, or for five of the last ten years.
Inheritance abroad: tax may be payable there
Austria does not levy inheritance tax, but many countries do. In Germany, for example, inheritance tax is payable if the deceased or the heir lives there or if real estate is located in Germany; tax-free allowances apply, for example € 500,000 for spouses and € 400,000 per child. Turkey also levies inheritance tax. Coordinated planning is important here.
Frequently asked questions
Do I have to report an inheritance to the tax office?
The acquisition of real estate is notified to the tax office, which assesses the real estate transfer tax. Cash, bank accounts and securities do not trigger any tax on the acquisition in Austria.
Do children pay less real estate transfer tax than other heirs?
No, on inheritance the tiered rate on the property value applies to everyone. For the entry fee, the family circle is favoured.
Who pays if there are several heirs?
Each heir for their own share; the tiered rate is applied separately for each heir to the value of their share.
Are you inheriting a property? In a free first consultation we clarify taxes, fees and your claims – everything you are entitled to. And not a cent less.
Book a first consultationoffice@advokat-wien.at+43 1 34 601 71Read more
- Inheritance law & probate – overview & services
- Care legacy in Austria: Do relatives who provided care get more from the estate?
- International inheritance law in Austria: What applies to assets or heirs abroad?
- How is the compulsory share calculated in Austria? How much are you entitled to?
- Gifts and the compulsory share in Austria: Does a gift still count after 20 years?
This article gives a general overview of Austrian law and does not replace advice on your individual case.