What tax is payable when selling a property?
On a private property sale, property capital gains tax is generally payable on the profit. There are exemptions in certain cases, for example after long owner-occupation.
When selling a private property in Austria, the most important tax is the property capital gains tax (Immobilienertragsteuer). It is levied on the profit from the sale, that is roughly on the difference between the sale price and the earlier acquisition costs. Other costs such as property transfer tax or land register entry are usually borne by the buyer, not the seller.
Property capital gains tax at a glance
This tax concerns the increase in value of your property. How high it is in a particular case depends on when you bought, whether and how much was invested and whether an exemption applies. We deliberately give no blanket figure, because the calculation depends heavily on the individual case. You will find details in our FAQ What is property capital gains tax?.
Important exemptions
Not every sale is taxable. Two exemptions are particularly relevant in practice:
Main residence exemption
If you have used the property as your main residence for a certain period, the profit can remain tax-free. What exactly applies is set out in What is the main residence exemption?.
Builder's exemption
For buildings you constructed yourself, an exemption may also apply under certain conditions. Whether it applies in your case should be checked in advance.
Anyone who settles the tax question before selling sells more calmly and avoids unpleasant surprises in the final statement.
What many sellers overlook
Besides the tax, other items arise on a sale that affect the net proceeds. These include the cost of drawing up the contract, marketing and, where applicable, the deletion of existing charges. Outstanding loans on the property must also be allowed for and are repaid from the proceeds. Anyone who knows these points early sells with clear figures and does not come under pressure. We set out the relevant items clearly before you make a decision and align the process with your goals. That way you keep an overview of effort, tax and actual proceeds from the outset.
Our recommendation
Clarify the tax position before you advertise. Then you know your actual net proceeds and can set a realistic price. A sound property valuation is the basis for this. We accompany you through the sale and tell you openly when you should discuss tax questions with a specialist. Arrange a conversation without obligation and we will look at your situation together.