Everything Foreign owners need to know about property tax (ImmoESt) in Austria
When you sell a property in Austria, you almost always face the Immobilienertragsteuer (ImmoESt). This is the Austrian form of capital gains tax on real estate. Many foreign owners—especially from the Netherlands and Belgium—wonder how this tax works and whether they are obliged to pay it. In this blog, we explain it clearly, step by step.
What is Immobilienertragsteuer (ImmoESt)?
ImmoESt is a tax on the profit you make when selling a property or piece of land in Austria. It applies to both Austrian residents and foreign owners.
How much tax do you pay when selling?
In most cases:
➡️ 30% tax on the realized capital gain.
This fixed rate applies to most private real estate sales, whether or not you live in Austria..
The capital gain is calculated as:
sale price – purchase price – depreciation – certain deductible costs
When don’t you have to pay tax?
Fortunately, there are some exemptions. Here are the three most common:
1. Hauptwohnsitz rule (primary residence exemption)
You are exempt from tax if the sold property was your main residence and:
- You lived there continuously for at least 2 years immediately before the sale, or
- You lived there for at least 5 years within the last 10 years.
This exemption also applies to Foreign owners officially registered in Austria.
2. Selbsthersteller rule (self-builder exemption)
If you built the house yourself and never rented it out, you are often exempt from ImmoESt when selling.
3. Purchases before April 1, 2002
Older purchases (so-called Altvermögen) often benefit from more favorable regulations. In some cases, this can even result in a full exemption from capital gains tax.
Important for investors and rental properties
Do you rent out your property in Austria? Then it is automatically considered an investment property, and it’s likely you will have to pay ImmoESt upon sale.
This applies to:
- Long-term rentals
- Vacation rentals (Airbnb, Booking.com)
- Tourist operations
The Austrian tax authorities treat rentals as a commercial activity, meaning exemptions like the Hauptwohnsitz rule usually don’t apply.
How is the tax paid when selling?
Good news: you don’t have to arrange anything yourself.
The entire process goes through the notary, who uses a:
Treuhandkonto (escrow account / third-party account)
- The notary calculates the tax owed.
- The amount is automatically withheld from the sale proceeds.
- The notary then pays it directly to the Austrian tax authorities.
This makes the process simple, safe, and transparent for foreign sellers.
Conclusion: what you really need to remember
- Yes, in most cases, you pay 30% capital gains tax (ImmoESt) when selling Austrian property.
- There are important exemptions, especially for primary residences.
- Rental property owners usually always pay tax.
- The notary handles the entire process via a Treuhandkonto.