Since April 1, 2012, gains from the sale of real estate in Austria have been subject to real estate income tax (ImmoESt). The previously applicable speculation period has thus been replaced. This article shows you when the tax liability applies, how the amount is calculated and what exceptions and exemptions there are.
What is real estate income tax and who does it affect?
ImmoESt is a special form of income tax and relates to capital gains from the sale of real estate. Sale of private real estate. The profit is generally calculated from the sales proceeds less the acquisition costs (including ancillary costs and certain investments). The tax rate is currently a flat rate of 30 %.
All sales against payment are subject to tax, regardless of whether they are land, condominiums, houses or building rights. Non-remunerated transfers such as gifts or inheritance are exempt from ImmoESt. However, tax liability applies to subsequent sales by heirs or donees.
ImmoESt due? You should know this deadline
Real estate income tax must be paid to the tax office by the 15th day of the second month following the receipt of the sales proceeds. In practice, the calculation and payment is usually carried out by a notary or lawyer in the course of self-calculation.
Example: The sales proceeds are received on July 10. The ImmoESt must be transferred by September 15 at the latest.
Real estate income tax 2025: How the calculation works
The legislator distinguishes between New properties and Old properties:
- New cases (purchase after 31.03.2002): The tax is 30 % on the actual capital gain. Proven acquisition costs, ancillary costs (land transfer tax, registration fees, contract preparation), certain repairs and production costs are deductible.
- Old cases (purchase before 01.04.2002): Flat-rate values apply here. The tax office assumes a flat-rate acquisition cost of 86 %, i.e. 14 % of the sales proceeds are deemed to be taxable profit. This results in an effective tax rate of 4,2 %.
Practical example (new case):
An apartment is purchased in 2005 for € 180,000 (including ancillary costs). The sale takes place in 2024 for € 280,000. 15,000 was invested in renovations, € 700 costs for self-calculation.
Assessment basis: 280,000 - (180,000 + 15,000 + 700) = € 84,300
ImmoESt: 84,300 x 30 % = 25.290 €
Practical example (old case):
A house bought in 1999 for €120,000 is sold in 2024 for €300,000.
Assessment basis: 14 % of 300,000 = € 42,000
ImmoESt: 42,000 x 30 % = 12.600 € (corresponds to 4.2 % of the proceeds)
Save tax when selling your home: these exemptions are worthwhile
There are several exceptions where no real estate income tax is payable:
1. main residence exemption
If the property has been used as a main residence for at least 2 years continuously from the date of purchase or 5 years within the last 10 years before the sale and this is given up with the sale.
2. manufacturer exemption
Applies to self-constructed buildings (also by contracted companies) if the seller has borne the builder's risk and the property has not been used to generate income in the last 10 years. The exemption only applies to the building, not the land.
3. reclassification with cut-off date rule
Flat rates apply to the rezoning of properties:
- Rededication before 01.01.19884.2 % Tax on proceeds
- Rededication after 12/31/198718 % Tax on proceeds
Special case of mixed-use properties: old property & new construction
If a building is erected on an old plot of land (purchased before 2002) after 31.03.2012, the land is to be allocated to the old stock (4.2 %) on sale, but the building is to be allocated to the new stock (30 % on profit).
Practical example:
Land € 100,000 (old case, € 4,200 tax), house sale € 200,000 with profit € 60,000 (new case, € 18,000 tax).
Total tax: 22.200 €
Conclusion: When a property sale is worthwhile despite tax
Property income tax is a complex topic with numerous exceptions and special cases. It is therefore advisable for property sellers to seek tax advice before selling and to keep all relevant documents relating to the valuation and investments.
Key Takeaways
- ImmoESt is 30 % on capital gains (for new assets)
- Old assets before 2002: flat rate of only 4.2 % on sales price
- Exemption possible for main residence or self-constructed buildings
- Reclassification can lead to different taxation
- Tax due by the 15th of the month after next following the sale proceeds
