Austria: real-estate transfer tax — new rules on the tax basis
The transfer of Austrian real estate triggers a 3.5 per cent (two per cent in case of intra-family transfers) Austrian real-estate transfer tax. In 2012, the Austrian Constitutional Court ruled that the provisions in the Austrian real-estate transfer tax on the tax basis are not in conformity with the country’s constitutional law. Shortly prior to the expiry of the transition period, new provisions for determining the tax base for Austrian real-estate transfer tax purposes entered into force as of 1 June 2014.
As a general rule, the consideration for the transfer of real estate serves as the tax basis for Austrian real-estate transfer tax purposes. However, in case there is no consideration (e.g. in case of a transfer mortis causa), if the consideration cannot be determined or if such consideration is lower than the real estate’s fair market value, then the prevailing fair market value of the property will be the basis for the Austrian real-estate transfer tax, thereby serving as some kind of minimum tax basis.
As a result, transfers of Austrian property effected without any compensation to a non-family member will trigger an increased real-estate transfer tax burden. This inter alia applies to the contribution of real estate by a shareholder to its subsidiary without effecting a capital increase…
Click on the link below to read the rest of the Schoenherr briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Schoenherr
Briefings from Schoenherr
Poland: Will EAA and Swiss investors be able to freely acquire agricultural and forest properties as of May 2016?
Restrictions on acquiring agricultural and forest properties in Poland by foreigners from the European Economic Area and Switzerland will cease to be binding in May 2016. Does this mean trade in agricultural real properties will be entirely free?
The introduction of a consolidated procedure and the introduction of location conditions as a replacement for location permits are among the recent changes to Serbia’s Planning and Construction Act.
Analysis from The Lawyer
Regulators are ramping up the pressure in the aftermath of recession, leaving firms to compete for compliance and restructuring work