Inherit or bequeath real estate in Austria: When a loved one passes away and leaves behind a property, grief and responsibility come together. Especially when it comes to a house or apartment, many heirs are faced with organizational, legal and financial challenges. What needs to be done? What deadlines apply? And how can disputes be avoided? Inheriting or bequeathing real estate in Austria will present many people with important decisions in 2025.
1. inheritance law principles in Austria
In Austria, statutory inheritance law applies in accordance with General Civil Code (ABGB). If there is no will, the Legal succession according to §§ 727 ff. ABGB as to who receives which shares. Spouses, registered partners and children have priority.
An important term is the Mandatory portion in accordance with § 762 ABGB: Children and spouses have a statutory right to a portion of the inheritance (half of the statutory entitlement), even if a will provides otherwise.
Tip: Without a will, statutory succession applies. A Clearly formulated will can avoid disputes and safeguard individual wishes (cf. oesterreich.gv.at - Inheritance law).
Checklist: Who inherits what with intestate succession?
| Situation | Who inherits? | Proportion according to law |
| Spouse:in & 1 child | Spouse + child | 1/3 + 2/3 |
| Spouse:in & no children, parents live | Spouse + parents | 2/3 + 1/3 |
| Life partner only (no will) | No statutory inheritance claims | Right of residence for 1 year only (§ 748 ABGB) |
| No heirs & no will | Republic of Austria | 100 % (§ 750 ABGB) |
2. will, inheritance contract or gift on death?
There are three main options for arranging the transfer of real estate in the event of death:
- WillUnilateral arrangement, revocable at any time (§ 552 ABGB). Recommended for clear ideas and a simple inheritance structure.
- Contract of inheritanceContractually binding agreement between the testator and one (or more) persons. Only valid with a notarial deed (§ 1249 ABGB).
- Gift in the event of deathIs concluded during lifetime, but only comes into force upon death. Also required to be notarized (§ 956 ABGB).
Checklist: Which document is useful when?
| Instrument | Advantages | When is it suitable? |
| Will | Flexible, simple | Individuals, simple succession |
| Contract of inheritance | Legal certainty for all sides | Multiple heirs, asset distribution in advance |
| Gift on death | Tax optimized | Succession that can be clarified during your lifetime |
3. taxes on real estate inheritance in Austria
Since the abolition of inheritance tax on 1.8.2008 (Federal Law Gazette I No. 85/2008), inheritances are subject to No inheritance tax more. Nevertheless, the following taxes are relevant:
- Real estate transfer tax in accordance with GrEStG: Staggering for transfers free of charge (inheritance, gift):
- 0.5 % for the first € 250,000
- 2 % for the next € 150,000
- 3.5 % for amounts above this
- Land register entry fee1.1 % in accordance with the Court Fees Act
- Lien registration (for mortgage): 1.2 %
The measurement is usually based on the Property value pursuant to §2 GrEStG, which serves as a substitute for market value/unit value. (cf. bmf.gv.at - Real estate transfer tax).
Info: Transfers made free of charge must also be reported to the tax office (Gift Notification Act, Federal Law Gazette I No. 85/2008).
Checklist: Taxes & fees for real estate inheritance
| Position | Height | Basis |
| Real estate transfer tax | 0.5-3.5 % | Step model according to GrEStG §2 para. 4a |
| Registration fee | 1,1 % | Court Fees Act § 26 |
| Lien (for credit) | 1,2 % | Court Fees Act |
4 The role of the notary and the probate procedure
Every inheritance in Austria is judicial probate proceedings (AußStrG §§ 143ff). The notary acts as court commissioner and issues the "Einantwortungsbeschluss", which authorizes the transfer to the land register.
Checklist: Steps in probate proceedings
| Step | Description |
| Death notification | Registry office reports to the district court |
| Notary appointment | Notary appointed as court commissioner |
| Declaration of succession | Heirs accept or disclaim the inheritance (§ 797 ABGB) |
| Response | Court transfers ownership by order |
| Land register entry | Property is transferred to Erb:in |
5. joint inheritance: What to do if there are several owners?
If several persons inherit jointly, a Community of heirs (§ 825 ABGB). This is often impractical, as all decisions must be made unanimously.
Solution: The Settlement of inheritance (§§ 830 ff. ABGB), i.e. payment of individual shares or joint sale.
Checklist: If you inherit together
| The challenge | Solution |
| Different goals | Mediation or legal advice |
| One party wants to sell | Settlement or payout |
| Property to be rented out | Check subadministration (e.g. Learn more) |
6. alternative: pass on the property during your lifetime?
Gifts during your lifetime often make sense from a tax point of view, but need to be well planned. Important: They are valid until 10 years retroactively in the case of compulsory portion claims (§ 782 ABGB).
Entries in the land register are made in accordance with § 431 ABGB (transfer of ownership) and must be notarized or certified by a court.
Info: The reporting obligation also applies to gifts of EUR 15,000 or more (Gift Reporting Act).
FAQ: Inheriting or bequeathing real estate in Austria
What is the compulsory portion?
The compulsory portion is the legally secured entitlement of close relatives (children, spouses) to a portion of the inheritance - even against the will of the testator.
Can I give away a property and still live in it?
Yes, through a "gift with right of residence" or "usufructuary right", the transferor can continue to live in the property or receive rental income.
Do I have to pay real estate transfer tax as an heir?
Yes, real estate transfer tax (0.5-3.5 %, staggered) is payable on transfers free of charge.
How long do probate proceedings take?
Depending on the complexity, between 2 weeks (simple case) up to several months (with will, compulsory portion claims, valuation etc.).
What happens if several people inherit?
A community of heirs is created - decisions can only be made jointly. The property is often sold or divided up.
What happens if I want to renounce the inheritance?
There is a deadline of 3 months from the date of knowledge of the inheritance. This must be declared before the notary.
Key Takeaways
- Statutory succession applies without a will - spouses and children have rights to a compulsory portion
- No inheritance tax in Austria, but real estate transfer tax & registration fee
- Property can be transferred in a tax-optimized manner during your lifetime
- Notarial deed required for inheritance contract, gift on death & inheritance
- For joint heirs: clarify at an early stage whether sale or payout makes sense
- Focus: Inheriting or bequeathing real estate in Austria - What you should know in 2025
Conclusion: Inheriting or bequeathing real estate in Austria
Whether you have inherited a property or would like to bequeath one yourself: Clear regulations and timely decisions not only save taxes, but also conflicts. Get professional support at an early stage to pass on or take over your property in a legally secure and tax-smart manner.
Get advice now with KROY Immobilien
Inherit or bequeath real estate in Austria. Are you facing an inheritance or would you like to hand over your property in a well-organized manner during your lifetime? At KROY Immobilien, we support you with experience, intuition and legal expertise - from valuation to land register processing. Arrange your free initial consultation now: Contact us
