[BUYING AND SELLING REAL ESTATE IN AUSTRIA]
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Donation The donation of a property (land, apartment, etc.) constitutes a contract that the donor and the donee (recipient) conclude with each other. The donation must be accepted by the donee. Thereby, certain formal requirements must be observed: The gift without immediate transfer requires according to Austrian Law a written contract in form of a notarial deed. If the property is handed over to the donee immediately, the signatures of all parties must be certified by a notary public for the transfer of ownership to be recorded in the land register. From a tax point of view a donation and the purchase of real estate are quite comparable, but since the gratuitous transfer does not result in a capital gain of the seller, the donation generally does not incur Real Estate Income Tax. However, caution is required in the case of a so-called "mixed gift", i.e., if an - even if symbolic - consideration is paid for the property. On the other hand, the donation of real estate is subject to Real Estate Transfer Tax as well as to a court registration fee. The basis of assessment for the Real Estate Transfer Tax in the case of donations is the property value which is generally determined by an expert or through a government approved real estate price index. The tax rate is then graduated according to the value of the gift. Our Law Firm This Memorandum is for information purposes only and reflects Austrian law in August 2024. This Memorandum does not constitute legal advice and cannot replace personal consultation on a case-by-case basis. If you
have any further questions about real estate in Austria or need general legal advice, please contact Dr. Andreas Bauer, bauer@brauneis.law, +43 1 532 12 10. Brauneis Rechtsanwälte is one of the leading business law firms in Austria. We are specialized in consulting in all areas of business law with a distinctly international orientation. We assist our clients in the long term and find sustainable ways to achieve their desired objective.
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ILN Real Estate Group – Buying and Selling Real Estate Series
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