Tax depreciation
Straight-line
Over the expected useful life of the asset, depletion allowances on natural resources (e.g., gravel)
Additional
In the case of permanent impairment losses
Depreciation categories
Land
Only extraordinary depreciation
Buildings
Without evidence up to 2.5 % pa.; however residentially used buildings up to 1.5 % pa.
Leased and rental property: up to 1.5 % pa.
Shorter useful lives where supported by expert opini- ons, or in the case of lightweight construction (4 % pa.) and in case of construction before 1915 (2 % pa.).
Accelerated depreciation applicable regarding buil- dings with acquistion/construction after June 30, 2020; max. amount of three times the depreciation rate in the first year, and two times the depreciation rate in the second year - afterwards "normal" depreciation rate; half-year depreciation do not apply.
Tax base for buildings
Provided at least 80% directly used for business purposes (but with up to 20% private use), tax base is total acquisition and construction costs excluding land, otherwise, the proportionate share
In case of less than 20% business usage: building remains private property, but a proportion of the costs is allowable
from the non-operating income: In general, 40% (sometimes also 20% or 30%, depending on the property’s nature and location) of the acquisition costs of a developed property are presumed to be land
Special depreciation
Operating income:
Capitalizable expenditure incurred for maintenance of buildings classified as historic monuments can be spread and written off over 10 years
Renovation and renewal costs for residential buildings leased to individuals not involved in the business: expenses not covered by grants are to be written off over 15 years.
Non-operative income:
Under certain conditions, depreciation of production costs over 15 years possible. Regarding renovation and renewal costs for residential buildings see above.
Write-ups
Obligation to write up to a maximum of the historic acquisition costs
Real estate income tax
Object of taxation
Capital gains from the sale of operative and private real estate (irrespective of the holding period) by individuals
Exemptions: proportional tax rate is still applicable in particular for commercial property agents and for taxpayers whose business activities are focused on the transfer and sale of properties
Tax rate
30 % an option to regular taxation is possible; special rules for old real estate assets
Tax collection
generally in the course of the calculation by attorney or notary public
Exemptions
- real estate, which had been used uninterruptedly as a main residence since acquisition or construction and for at least 2 years or for 5 years within the last 10 years before sale and main residence is given up
- self-constructed buildings, provided that these are not rented
- exchange of land in the course of reallocation or consolidation procedures
- sale of real estate as a result of (imminent) official intervention
Property transfer tax
Object of taxation
Transactions resulting in transfer of ownership of land in Austria, or of rights to use of land
Consolidation of ownership of share capital (≥ 95 % of shares) in a property company (partnership or corpo- ration) into the hands of a single owner, or a group of companies or transfer of ≥ 95 % of the shares in case of partnerships (transfer of shares to new partners within 5 years relevant).
Types of property affected: land, buildings, additions, appurtenances, building rights, buildings on land owned by others; possibly avoidable in case of transfer of shares in companies
Basis of assessment
Basically the amount of the consideration, but at least the actual value of the property (minimum taxation basis)
the value of the property is determined by the market value resp. lump sum calculation
agricultural and forest properties: one time the assessed value
Tax rate
Rate determined by whether the transaction is
- with consideration
- without consideration
- partially with consideration
Legal definition:
| purchase without consideration |
consideration amounting to less than 30 % of land value |
| purchase made partially with consideration |
consideration more than 30 % but not more than 70 % of the land value |
| purchase with consideration |
consideration amounting to more than 70 % of land value |
transfers with consideration are taxed at 3,5 % on the purchase price
taxation of purchases without consideration is determined based on a graduated taxation:
| the first |
EUR 250.000 |
0.50 % |
| the next |
EUR 150.000 |
2% |
| beyond this amount |
EUR 400.000 |
3.5 % |
Always treated as a purchase without consideration:
- Succession, inheritance (also outside the family unit)
- Acquisitions by living family members within a family unit
In the following cases the property transfer tax amounts up to 0.50 % (assessment basis is in general the value of the property):
- Change of shareholders in a partnership (in case of at least 95 % of the partners within 5 years)
- Consolidation of shares in regards of partnership and corporations (in case of at least 95 % of the shares)
- Transactions covered by the Austrian Reorganisation Act
Property-related taxes
Property tax
Objects of taxation
property in Austria:
- agricultural and forestry land
- real estate
- business assets consisting of company land
Basis of assessment determined by tax offices (based on the assessed value of the property)
Tax factor is generally 2‰
Real estate funds
Owner of the fund assets
The fund company, so that for the investor there is no entry in the property register and no property transfer tax.
Annual valuation
By two property experts
Borrowing
Maximum permissible: 50 %
Diversification of risk
At least 10 properties; value of any individual property not to exceed 20 % of total fund assets
at least 10 % and at most 49 % of the fund assets: cash, securities; or bank acceptance
no more than 49% of the shares in real-estate companies Special Purpose Funds: special rules
Tax liability
Ongoing taxation: proportional share of profits from rental and leasing, profit distributions made by domestic corporations and liquidity gain, and 80% of the increase in value (unless DTA-exempt).
in case of sale of share: Taxation of the value increase not yet taxed (20%)
Investment income withholding tax of 27.5% satisfies taxpayer’s liability (in case of public placement), option to assess income as income from capital (up to 55% personal income tax)
foreign investment funds: OP
