Austria — Tax: Capital Gains

Why this matters

Capital gains tax can significantly impact an individual's net return on investments, making it essential for relocating individuals to understand the applicable rates and rules.

Key facts

• Interest from savings accounts is taxed at a special 25% rate and all other capital income, including gains on shares, funds, bonds and derivatives, at 27.5%, separately from other income.
• Gains from private property sales are taxed at a flat 30% real estate income tax, generally collected by the parties representative and final.
• A voluntary assessment option keeps the 30% rate, or the regular progressive rate can be chosen if lower.
• Property transfer tax (Grunderwerbsteuer) is 3.5% of the consideration or property value for sales; family transfers use a sliding scale (0.5% on the first EUR 250,000, 2% on the next EUR 150,000).

Steps

1. Determine the Type of Asset — Capital gains tax rates differ based on the type of asset sold, such as securities, real estate, or businesses. The specific tax treatment for each asset type is uncertain without consulting official sources.
2. Calculate the Gain — The gain from the sale of an asset is subject to capital gains tax. The exact process for calculating the gain is unclear without consulting official sources.
3. Apply the Applicable Tax Rate — The capital gains tax rate is applied to the calculated gain, based on the taxpayer's income level and the type of asset. The specific tax rates and brackets are uncertain without consulting official sources.