Inheritance and Gift Tax in Austria in 2026: No Tax, but Important Exceptions

If you inherit assets or receive a gift in Austria, the main rule is straightforward: there is currently no separate inheritance tax or gift tax. However, this does not mean that every transfer is free from tax or administrative obligations. Property transfers may trigger real estate transfer tax, and certain gifts are subject to a reporting obligation.

Is there inheritance tax in Austria?

No. As of the situation applicable on 1 January 2026, Austria does not impose inheritance tax (Erbschaftssteuer) or gift tax (Schenkungssteuer). Receiving an inheritance or a gift does not, by itself, create a separate tax liability under either of these headings.

The rules may change in the future, so it is sensible to check the current position when planning a significant transfer.

When can tax still apply? Property is the main exception

The most important exception concerns real estate. If a plot of land, house or other property is transferred to you through inheritance or without payment as a gift, Grunderwerbsteuer is payable.

This means that an inherited or gifted home can still create a tax obligation, even though Austria has no inheritance tax. Grunderwerbsteuer is a separate tax connected with acquiring property; it is not inheritance tax under another name.

• Inheritance of assets other than property: no inheritance tax and no tax under this heading.
• Gifts other than property: no gift tax, but a reporting obligation may apply in certain cases.
• Inheritance of property: no inheritance tax, but Grunderwerbsteuer applies.
• Gift of property: no gift tax, but Grunderwerbsteuer applies.

Reporting obligations for gifts

Although there is no gift tax, certain gifts must be reported. This is known as a reporting obligation (Anzeigepflicht, also referred to as Meldepflicht bei gewissen Schenkungen).

Not every gift is covered. The precise conditions, deadlines and procedure are set out in separate provisions. The legal basis is the Federal Fiscal Code (Bundesabgabenordnung, BAO), sections 120, 121 and 121a.

The key point is that tax exemption does not automatically mean that there are no reporting requirements.

Why plan property transfers in advance?

For property, a carefully planned transfer during the owner’s lifetime (vorausschauende Übergabe zu Lebzeiten) is generally more favourable.

This is a general observation, not a rule that applies to every situation. The best option depends on the circumstances of the people involved and the property. Before making a decision, consider consulting a notary (Notar) or another suitable professional.

Related legal concepts

Inheritance and gifts can also involve questions that are primarily matters of inheritance law rather than tax law:

• Estate (Verlassenschaft): the assets left by a deceased person, which are handled through a separate procedure.
• Compulsory share (Pflichtteil): a separate question concerns gifts made to people who are, or are not, entitled to a compulsory share.
• Gift in contemplation of death (Schenkungsvertrag auf den Todesfall): a special form of gift that is subject to separate rules.

Frequently asked questions

Do I have to pay tax if I inherit money in Austria?

No inheritance tax is payable because Austria has no such tax in 2026. Property is different: Grunderwerbsteuer is payable when property is inherited.

If my parents give me their home, do I have to pay tax?

No gift tax is payable, but Grunderwerbsteuer applies when property is transferred without payment.

Does every gift have to be reported?

No. A reporting obligation (Anzeigepflicht) applies only to certain gifts. The detailed conditions are set out in separate provisions.

Where are these rules set out?

The legal basis for the reporting obligation is the Federal Fiscal Code (Bundesabgabenordnung, BAO), sections 120, 121 and 121a.

Practical steps before accepting an inheritance or gift

1. Identify whether the transfer includes real estate, such as land, a house or an apartment.
2. Check whether Grunderwerbsteuer applies to the property transfer.
3. Determine whether the gift falls within the reporting obligation for certain gifts.
4. Review the current rules, particularly if the transfer is planned after 1 January 2026.
5. For property or complex family arrangements, consult a Notar or another qualified professional before signing documents.

This article is based on information available online and is not legal or tax advice. Decisions should be made at your own responsibility. Source: oesterreich.gv.at.