Selling a condominium in Austria can bring financial benefits - but it also involves tax pitfalls. Anyone who wants to sell an apartment in 2025should therefore inform themselves in good time: What taxes apply? When is the sale tax-free? And what applies to rented apartments? Here you can find out what is important.
When does the sale of an apartment become taxable?
In Austria, the profit from the sale of a condominium is generally subject to real estate income tax (ImmoESt). The tax is levied on the difference between the acquisition costs and the proceeds from the sale. Real estate income tax is a flat rate of 30 % of the capital gain.
Exemptions from the tax liability
Not every apartment sale is taxable. There are two important exceptions:
- Main residence exemption: If the apartment is at least two years continuously or five years within the last ten years was used as the main residence.
- Manufacturer exemptionIf you have built the home yourself and no tax depreciation has been claimed.
Special regulations on the main residence exemption
Rental periods count
Periods in which the apartment was rented as a main residence (e.g. in the case of installment plan or cooperative apartments) can also be counted towards the five-year period of use within ten years.
Attention when renting
If more than a third of the living space is rented out permanently, the main residence exemption may be lost. Interim lettings or interruptions in use can also have tax consequences.
How is real estate income tax calculated?
The tax is calculated on the capital gain:
Selling price - acquisition costs - advertising costs = profit
This profit will be 30 % ImmoESt are due. Advertising costs can be, for example, estate agent commissions, advertisements or legal advice. The acquisition costs can be increased by verifiable investments (e.g. renovations).
What applies to rented apartments?
Special rules apply to rented condominiums. The main residence exemption generally applies here not. The full profit is therefore taxable. Please note: Apartments previously used as a main residence must also be Deregistered in good time otherwise you will lose your tax exemption.
What about "old assets"?
For apartments that before 31.03.2002 special privileges apply:
- flat-rate acquisition cost deduction of 86 %
- Effective taxation of only 4.2 % of the sales price
This means that anyone selling a very old apartment usually pays significantly less tax.
Special case: apartment as part of an inheritance
If you inherit an apartment and sell it, the original acquisition costs of the deceased apply. The speculation period or tax liability is therefore based on the date of acquisition. Precise documentation is particularly important here.
When is a tax consultant worthwhile?
As soon as complex constellations arise - for example in the case of:
- several owners
- rented apartments
- Unclear main residence use
- Inheritances
A tax advisor can help to determine the correct taxation and make the best use of possible tax allowances.
Checklist: What you should clarify before selling your home
- Is the apartment your main residence (incl. rental periods)?
- When did you buy/receive the apartment?
- Is there evidence of investments?
- Has the apartment been (partially) rented out?
- Floor area over 1,000 m²?
- Brokerage or advertising costs documented?
- Involve a tax consultant?
Conclusion: Good preparation saves taxes
If you want to sell your condominium, you should deal with the tax situation at an early stage. Depending on the use and date of purchase, the sale may be tax-free or involve a considerable tax burden. With good preparation and professional advice, many stumbling blocks can be avoided.
Read also:
Selling a house in Austria: What taxes are due? - Here you will learn more about relevant aspects of real estate income tax, tax exemption for main residences and exemptions for house sales.
