[BUYING AND SELLING REAL ESTATE IN AUSTRIA]
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fees for registering ownership rights and liens in the land register when purchasing residential property. The fee exemption is limited to two years (until 2026) and can only be claimed under certain circumstances. In particular, the purchased property must serve to satisfy an urgent housing need of the purchaser. The prerequisite for the registration of the ownership right in the land register is, in addition to the already mentioned documents, the proof that the real estate transfer tax has been paid to the responsible tax office (so-called clearance certificate). The processing with the financial authorities is regularly carried out by the trustee (attorney-at-law or notary public) who draws up the purchase contract. Since April 1, 2012, earnings from the sale of private real estate are subject to the Austrian Real Estate Income Tax (“Immobilienertragsteuer” - ImmoESt). The taxation is not based on the regular income tax rate, but on a special 30% tax rate (there are exceptions to this taxation, for example if the own residence is sold). For the purposes of real estate income tax, the term "property" refers to land and buildings, condominiums, and rights equivalent to real estate property, such as building rights. Due to the Budget Accompanying Act 2025 (“Budgetbegleitgesetz 2025“), a corresponding rezoning surcharge of 30% of the positive (operating and non-operating) income from the sale of rezoned land is now planned, which will result in higher taxation of rezoning gains in future. This new regulation affects properties that have been rezoned after 31 December 2024 and that have been sold since July 1, 2025. Under the previous legal situation, share deals were only subject to the 0.5% real estate transfer tax if at least 95% of the shares in a company were united to one shareholder/group of companies (‘share
consolidation/Anteilsvereinigung’) or if at least 95% of the capital shares in a partnership were transferred to new shareholders within five years (‘qualified share acquisition/ qualifizierter Anteilserwerb’).Due to the Budget Accompanying Act 2025 (“Budgetbegleitgesetz 2025“), the acquisition of 75% of the shares now leads to this tax situation. At the same time, the relevant period is extended from previous five years to seven years. Of particular significance is the planned increase in the tax rate for share combinations in so- called real estate companies (“Immobiliengesellschaften“) to 3.5% of the fair market value of the property. “Non-real estate companies“ (“Nicht- Immobiliengesellschaften“) continue to be subject to the reduced tax rate of 0.5% of the property value within the meaning of the Property Value Ordinance (“Grundstückswertverordnung”). Another tax benefit should be highlighted: if a share consolidation or reorganisation takes place exclusively within the family circle (e.g. spouses, parents, children, grandchildren), the real estate transfer tax is only 0.5% of the property value, even if it is a real estate company (“Immobiliengesellschaft“). The rule that changes in the shareholder structure of at least 75% within seven years trigger land transfer tax shall not apply to listed companies (“börsennotierte Gesellschaften“/ „Börsenklausel“). The new regulations are to apply to purchases made after June,30 2025. XIII.Additional Costs If a broker was involved, the broker's fee; Attorney and/or notary fees: the purchase contract is usually drawn up by a lawyer or a
ILN Real Estate Group – Buying and Selling Real Estate Series
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