Taxes on Home Sales in Austria in 2026. When Ingrid from Vienna inherited her parents’ house, she suddenly found herself facing an unfamiliar challenge: A sale was on the table—but what did that mean from a tax perspective? Would she have to pay real estate gains tax? Were there any exemptions? And when is selling a home actually worthwhile from a tax perspective? This blog post guides you through all the relevant tax issues surrounding the sale of a home in Austria in 2026—in an easy-to-understand, up-to-date manner, with plenty of real-life examples.
When are taxes actually due when selling a house?
In Austria, the sale of private real estate is generally subject to what is known as the Real estate income tax (ImmoESt) – unless certain exemptions apply. This tax is part of income tax law and currently amounts to 30 % of the profit. The profit is the difference between the sales proceeds and the tax-deductible acquisition cost, less any business expenses, if applicable.
What counts as taxable income?
- Proceeds from the sale as specified in the purchase agreement
- less the original purchase price or notional acquisition cost for existing assets
- less documented investment costs (production costs)
- minus professional expenses (e.g., attorney, notary)
Take Ingrid, for example: The house was originally built in 1989, belonged to the parents, was inherited, and is now being sold in 2026 for €550,000. The original purchase price was €120,000, plus €30,000 in investments, resulting in a calculated profit of €400,000—on which 30% real estate income tax would generally be due unless an exemption applies.
When is the sale of a home tax-free?
For Ingrid, the key question is: Does any of the statutory exemptions apply? In fact, Austrian tax law provides for several exceptions, in particular:
| Grounds for Exemption | Prerequisite | What is tax-exempt? |
|---|---|---|
| Primary Residence Rule | 2 consecutive years OR 5 years out of the last 10 years as the primary residence | Building + 1,000 m² of land |
| Manufacturer exemption | The house was built by the owner and was not rented out | Buildings Only |
| Forced Sale / Expropriation | Public-Law Intervention | Entire property |
These exemptions must be actively substantiated and documented to the tax office—for example, through registration confirmations, invoices, expert opinions, or school records.
What counts as acquisition costs?
Accurately calculating the capital gain begins with determining the correct acquisition cost:
- Original purchase price or notional acquisition cost (pre-merger assets)
- Real estate transfer tax, registration fees, notary fees
- Construction costs, such as attic conversions, additions, and thermal retrofits
Notional acquisition cost: For properties acquired before March 31, 2002, a flat-rate notional value may be applied—often 86 % of the sales proceeds for existing properties that have not been rezoned.
Read also: Real Estate Appraisal in Austria: 7 Facts You Should Know
Checklist: You should have these documents on hand for tax calculations
- Deed of Sale (Initial Purchase or Deed of Transfer in the Case of Inheritance)
- Invoices for Investments
- Notice Regarding Real Estate Transfer Tax
- Proof of Registration Periods (Primary Residence)
- Appraisals for Older Properties
The new rezoning surcharge effective July 1, 2025
A controversial issue, even for Ingrid: If a parcel of land was rezoned from agricultural land to building land between January 1, 2025, and the date of sale, the taxable gain increases by a flat rate of 30 %. This applies in particular to existing assets that would otherwise receive preferential treatment.
Example: Old property with appreciation: €200,000 in regular taxable profit → plus an additional €60,000 in taxable profit from the rezoning surcharge = €78,000 in tax liability (at a rate of 30 %)
Taxes on an Inherited House—What Are the Rules?
The good news for Ingrid: The An inheritance itself is tax-free. The downside: When she eventually sells the property, she’ll have to pay real estate gains tax as if she had purchased it herself. The market value at the time of transfer of ownership is considered the notional purchase price. It’s worth having this value assessed by an official Appraisal Report to note.
Tip: If there are multiple heirs, the distribution of the estate for tax purposes should be documented in writing to avoid future disputes.
Which expenses are tax-deductible?
Only certain expenses can reduce taxable income. These include:
| Removable | Not deductible |
|---|---|
| Thermal retrofitting (e.g., insulation) | Repairs (e.g., painting) |
| Expert Opinion on Tax Calculation | Real Estate Agent Commission on the Sale |
| Notary and Attorney Fees When Buying a Home | Advertising Costs |
| Additions, Attic Conversions | Ongoing Operating Costs |
Key Takeaways – Taxes on Home Sales in Austria in 2026
- Real estate income tax is 30 % of the profit
- The primary residence or manufacturer exemption saves the entire tax amount
- The rezoning surcharge starting in 2025 could significantly increase the tax burden
- Appraisal reports establish tax-related values in the event of an inheritance
- Only certain investments are tax-deductible—brokerage fees are not
Conclusion
Ingrid saved a lot of money thanks to good advice. For anyone who wants to in 2026 Sell a House, the following applies: Anyone who understands the rules of real estate income tax and plans ahead can save many thousands of euros.
Kroy Real Estate Not only does it help with the sale—it also supports you with tax-related issues through its expertise, network of partners, and personalized advice.
Schedule a free initial consultation now
FAQs – Taxes on the Sale of a Home in 2026
Do I have to pay taxes every time I sell a house?
No, not if you are exempt (e.g., primary residence rule)
How much is the real estate income tax?
Generally, 30 % of taxable income
Can I claim my investments as a tax deduction?
Yes, but only if they add value and can be substantiated
When is it worth selling from a tax perspective?
If the property is a primary residence or if pre-existing assets are taxed at a favorable rate
What are the effects of a rezoning?
Effective July 1, 2025: +30 % surcharge on profits → significantly higher tax
Read also:
Real Estate Sales and Taxes: What You Need to Know in Austria must take into account
Find out directly on oesterreich.gv how real estate income tax works, when it is due, and what exceptions are provided for by law.
