Property Sale Tax in Austria: ImmoESt in 2026

If you sell an apartment, house or plot in Austria, you will generally have to pay Immobilienertragsteuer (ImmoESt) on the profit. However, several exemptions may apply, particularly when the property was your main residence. The following overview explains the 2026 tax rates, the main exemptions and the costs that may reduce the taxable profit.

What is ImmoESt and how much is it?

ImmoESt is charged on profits from the sale of real estate (Grundstücke). Since 2016, the special tax rate for private individuals has been 30 percent. This income does not increase the tax rate applied to your other income, meaning it does not have a progressive effect.

• Sales from 1 April 2012 to the end of 2015: 25%
• Sales from 2016: 30%
• Companies (Körperschaften): 23%, the general corporate tax rate

When can the regular tax tariff be more favourable?

Upon request, the regular progressive income tax tariff (Tarifsteuersatz) can be applied instead of the 30 percent special rate. This is known as the regular taxation option (Regelbesteuerungsoption).

This may be beneficial if your other income is taxed at an average rate below 30 percent. For example, a person who receives employment income as well as income from a property sale may fall into the 20 percent tax bracket.

The option must be requested for all property-sale income subject to the 30 percent rate together. It cannot be selected separately for individual sales.

Main residence exemption

The sale of a family house or condominium, together with the associated plot, may be tax-free if the property was your main residence (Hauptwohnsitz), meaning the centre of your everyday life. There are two main ways to qualify.

The two-year rule

You must have lived continuously in the property for at least two years from the date of purchase until the sale. Moving in up to one year after the purchase is permitted. You must give up the main residence either before the sale or within one year after it.

The “five out of ten” rule

You must have lived continuously in the property for at least five years during the ten years before the sale. Under this rule, you may have given up the main residence up to five years before the sale, and there is a one-year grace period after the sale.

Important details

• The exemption also covers the plot, up to a maximum area of 1000 m².
• Under the “five out of ten” rule, the property may have been rented out during the remaining period, for up to five years.
• You must give up the main residence. For example, if you sell the house but continue living there as a tenant for more than one year, the exemption does not apply.
• The exemption also does not apply if you divide the house into two apartments, sell one and remain in the other.

If you have a rented apartment in addition to your main residence, you may move into that apartment after the tenancy ends. The sale of the former main residence may then qualify for the exemption.

Inherited or gifted property

The two-year rule cannot be used in this situation because it requires a purchase, meaning an acquisition in return for payment. The exemption is generally not inherited either: a sale from an estate may be taxable even if the deceased person would have fulfilled the exemption requirements.

However, under the “five out of ten” rule, the period during which you lived in the property as a relative without yet being the owner may count if you later inherited the property or received it as a gift. If you moved out of your parental home more than five years ago and then inherit and sell it, the sale is not exempt.

Self-built property and other exemptions

Profit from the sale of a building constructed by you in your private assets may be tax-free under the builder’s exemption (Herstellerbefreiung). The building must have been newly constructed from the foundations; renovation or completion work is not sufficient. You must also have carried the financial construction risk.

This requirement can also be met if a contractor built the property, provided that you carried the risk of cost overruns.

• The plot remains taxable under this exemption.
• If part of the building was rented out during the last ten years, only the non-rented part is exempt.
• If both the main residence exemption and the builder’s exemption apply, the main residence exemption takes priority because it also covers the plot.

Other exempt transactions include a sale resulting from expropriation (Enteignung) and certain exchanges, such as boundary adjustments, if the equalisation payment does not exceed 730 euros.

Which costs can reduce the taxable profit?

For so-called “new properties” (Neu-Grundstücke), the actual acquisition costs (Anschaffungskosten) may be adjusted.

• Costs that increase the acquisition cost: construction expenditure (Herstellungsaufwand), such as an extension, adding another floor or installing central heating for the first time; and improvement expenditure (Instandsetzungsaufwand), such as replacing windows, replacing the heating system or adding thermal insulation to the façade.
• Costs that do not count: maintenance (Instandhaltung), such as painting or sanding parquet flooring.
• Costs that reduce the acquisition cost: depreciation already claimed during a previous rental period (AfA) and government tax-free subsidies.

The same cost cannot be taken into account twice. An expense that was already deducted during a rental period cannot also increase the acquisition cost for the property sale.

Frequently asked questions

How much is property sale tax in Austria in 2026?

For private individuals, the rate is 30 percent of the profit. The regular progressive tax tariff may be selected upon request. For companies, the rate is 23 percent.

Do I have to pay ImmoESt when selling my own home?

Not if the main residence exemption applies. This generally requires either at least two years of continuous residence since the purchase, or five years of continuous residence during the last ten years, and you must give up the main residence.

Is the plot also exempt?

Under the main residence exemption, the plot is also covered up to 1000 m². The builder’s exemption applies only to the building.

Can I deduct painting costs?

No. Maintenance costs do not increase the acquisition cost. Construction expenditure and improvement expenditure may do so, subject to the applicable rules.

Practical steps before selling

1. Establish whether the property was your Hauptwohnsitz and check the two-year and “five out of ten” residence periods.
2. Check whether the main residence was actually given up within the permitted time limits.
3. Separate the building and plot when assessing a possible builder’s exemption.
4. Collect purchase documents, construction and improvement invoices, records of previous rental deductions and information about government subsidies.
5. Check whether the regular taxation option would be more favourable than the 30 percent rate. Remember that it applies to all relevant property-sale income together.
6. Before completing the sale, obtain professional advice if the property was inherited, gifted, rented out, self-built or used partly as a main residence.

This information is based on sources available online and does not constitute legal or tax advice. Use it at your own responsibility. For individual advice, consult a lawyer, tax adviser or other relevant professional.

Source: oesterreich.gv.at