Austrian Property Taxation | Guide To Taxation on Ski Property In Austria
Many new build developments in the popular ski resorts are now designed as ‘tourism residences’. That means you have a legal obligation to rent out your property when you are not using it yourself.
By forcing owners to rent out their properties, the Austrian authorities ensure that the resorts do not suffer from the ‘cold’ or empty beds so often associated with some high-altitude French ski resorts.
As an incentive for prospective property hunters and acknowledging the benefits their business brings to the local economy, the VAT on the purchase will frequently be waived.
Although VAT is 20% in Austria, this break often results in a discount of between 10-20% discount off the gross purchase price due to different taxing practices for the land and the development. If you benefit from this tax break, it is worth noting that your purchase costs will still be based on the gross price of the property.
Capital Gains Tax
Capital Gains Tax on the sale of a property in Austria is currently 30% for all properties bought since April 2002.
Tax on Rental Income
Rental income is taxed as income in Austria and is therefore subject to the same rates as income tax which in 2021 were as follows: Up to 11,000 = 0%, 11,001 – 18,000 = 20%, 18,001 – 31,000 = 35%, 31,001 – 60,000 = 42%, 60,001 – 90,000 = 48%, 90,001 – 1,000,000 = 50%, above 1,000,000 = 55%.
For non-resident owners who live in the property less than 70 days per year, the 0% band is reduced to €3,000. Dual taxation agreement exists between the Austria and many other countries to ensure that you are not taxed twice on the same income.
Tourist Tax
If you rent out your Austrian property to guests, they will need to pay a daily tourist tax to the local council. Villages impose this tax in order to raise revenue on properties registered as holiday homes – if your property is registered for permanent residency, the tax will not be payable.
It is the law to charge tourism tax on all guests over the age of 14 for each night they spend on your property. The rate varies between villages but is typically between €0.36 and 3.2% of the cost per night, which your management agent will pay to the Gemeinde (council) on a regular basis.
Find out more about the Austrian Purchase Process here
