Real Estate Capital Gains Tax in Austria: When Does It Apply and How Much Is It Really?

Anyone selling a property in Austria will eventually come across the real estate capital gains tax (ImmoESt). While many aspects of the sales process are standardized, one key question often remains unclear: how much tax is actually due—and when does it have to be paid?

The answer depends on several factors, particularly the date of acquisition, how the property was used, and which costs can be documented. Clarifying these points before the sale helps avoid unpleasant surprises and allows for a realistic financial assessment.

How High Is the Real Estate Capital Gains Tax?

In Austria, the ImmoESt generally amounts to 30% of the taxable profit.

Important: The tax is not calculated on the total sale price, but only on the profit.

Example:

Sale price: €500,000
Acquisition costs including additional costs: €300,000
Profit: €200,000
ImmoESt (30%): €60,000

The higher the verifiable expenses (e.g. renovations), the lower the taxable profit.

When Exactly Does the Tax Have to Be Paid?

In practice, the tax is not paid directly by the seller but is handled as part of the transaction process:

The calculation is carried out by a notary or lawyer (legal representative)
The tax is withheld during the execution of the purchase agreement
It is then paid directly to the tax office

This means:
The seller receives the purchase price already reduced by the tax amount.

In most cases, no additional payment is required later—provided all information was correct.

Difference Between “Old Assets” and “New Assets”

A key factor is the acquisition date:

New Assets (acquired on or after April 1, 2002)

The actual profit is calculated
Tax: 30% of the profit
All costs and investments are relevant

Old Assets (acquired before April 1, 2002)

Simplified rules apply:

Lump-sum profit calculation
Effective tax typically: 4.2% of the sale price (without rezoning) 18% of the sale price (in case of rezoning)

This can be a significant advantage, especially for properties held long-term in cities like Salzburg.

When Is No Tax Due at All?

In many cases, the ImmoESt can be completely avoided. The most important exemptions include:

Main Residence Exemption

No tax applies if:

The property was used as a main residence for at least 2 consecutive years, or
For at least 5 consecutive years within the last 10 years

Additionally, the main residence must be abandoned upon sale.

Self-Constructed Buildings

If a house was built by the owner, the building portion is tax-free (the land may still be taxable).

Other Special Cases

Certain rezoning scenarios
Property exchanges
Business-related regulations

These cases are more complex and should be reviewed individually.

Which Costs Reduce the Tax?

Many sellers underestimate how strongly documented costs can reduce the tax burden.

Typical deductible items include:

Purchase price plus ancillary costs (property transfer tax, legal fees, etc.)
Real estate agent fees at purchase
Value-enhancing renovations (e.g. roof, windows, heating system)
Construction costs (extensions, conversions)
Selling costs (agent, contract preparation)

Not all expenses are deductible—routine maintenance is often not recognized.

👉 In practice, this is where the biggest differences in tax amounts occur.

Special Case: Inherited or Gifted Properties

In these cases:

The acquisition data of the legal predecessor is carried over
Historical purchase prices and investments remain relevant

Challenges arise when:

Documents are missing
Renovations are not documented
Multiple generations are involved

This is quite common with older properties, especially in regions like Salzburg.

Common Practical Question: “How Much Do I Actually Keep?”

A simple rule of thumb:

Sale price – outstanding loan – ImmoESt = net proceeds

Example:

Sale price: €600,000
Loan: €200,000
Tax: €60,000
Result: €340,000

This calculation should always be done before starting the sales process.

Conclusion

Real estate capital gains tax in Austria is predictable—provided the relevant data is available. If you need support with the assessment or preparation, Simon Immobilien – Simon Mayr-Reisch will be happy to assist you.

The key factors are:

Acquisition date
Type of use (main residence or rental)
Complete documentation of costs

In many cases, the tax can be significantly reduced or even avoided. Without proper preparation, however, unnecessary amounts are often paid to the tax authorities.

If you are planning to sell your property and would like to understand your actual tax burden, you can request a non-binding assessment, including a professional property valuation.