Taxes when selling a house - what will you have to pay?
If you want to sell a house in AustriaThe seller not only has to worry about the selling price - tax issues also play an important role. What taxes have to be paid? When is the sale tax-free? And how does real estate income tax (ImmoESt) work? We bring clarity.
Real estate income tax (ImmoESt): The classic when selling a house
Since April 1, 2012, every sale of a private property has been subject to real estate income tax. As a rule, this amounts to 30 % of profit (difference between sales proceeds and acquisition costs incl. ancillary costs and investments).
Exception: tax exemptionif:
- the property has been used continuously as a main residence for at least 2 years, or
- have had their main residence for at least 5 years in the last 10 years ("5 out of 10 rule").
Valid for a maximum of two residential units with a floor area of up to 1,000 m².
What counts as acquisition costs?
This includes incidental costs such as land transfer tax, land register entry or estate agent fees. Subsequent investments (e.g. refurbishment, loft conversion) also increase the acquisition costs and thus reduce the tax burden.
Tip: Document all investments with invoices and payment receipts!
Special regulations for inheritances and gifts
The acquisition cost here is the unit value at that time (for existing assets) or the common value for gifts after 2016. Investments can also be claimed for tax purposes here.
When is sales tax relevant?
VAT may only be incurred on business property sales. For private house sales, VAT is generally not relevant.
Real estate transfer tax in the event of transfer of sale by close relatives
If, for example, the house is transferred to children as part of a gift or a sale below market value, the real estate transfer tax is calculated on the basis of the Property value calculated. Here, too, there are scales and allowances.
Key takeaways - Taxes when selling a house
- 30 % Real estate income tax on gain on sale
- Tax-free for main residence use (2 years or 5 out of 10)
- Investments reduce the tax burden
- Special rules apply when selling to children (property value)
- Sales tax plays no role in private life
Conclusion: avoid tax traps, plan correctly
A house sale needs to be well planned - especially from a tax perspective. Get support from a tax advisor and obtain information in good time. This will help you avoid surprises and secure all possible advantages.
