What Is Grunderwerbsteuer?
Austria's Grunderwerbsteuer (real estate transfer tax) is levied at 3.5% of the higher of the purchase price or the property's assessed value (Grundstückswert) on every transfer of immovable property. The buyer is liable for the tax. The notary calculates, collects, and remits it to the tax authority (Finanzamt) at or shortly after the deed signing. For properties transferred within the immediate family (spouses, parents, children, siblings), a reduced rate of 2% applies on the property's assessed value.
Assessed Value (Grundstückswert)
Since 2016, Austria has used a Grundstückswert (land value) as the base for Grunderwerbsteuer where the declared purchase price falls below market value — particularly relevant for family transfers and gifts. The Grundstückswert is calculated using official land value tables and the building's depreciated replacement cost. The Finanzamt uses this figure to prevent undervaluation of intra-family transfers for tax purposes.
Eintragungsgebühr (Registration Fee)
In addition to Grunderwerbsteuer, buyers pay an Eintragungsgebühr (land register entry fee) of 1.1% of the purchase price for registering ownership in the Grundbuch (land register). This is a separate charge collected by the court and remitted to the federal budget. Combined with Grunderwerbsteuer, the total transfer cost (before notary fees) is approximately 4.6% for a standard arm's-length residential purchase.
Family Transfer Rates
Transfers between nahe Angehörige (close relatives — spouse, registered partner, parents, children, grandchildren, siblings, stepchildren) attract a reduced Grunderwerbsteuer rate of 2% on the Grundstückswert (not the purchase price). For gifts within the family, the same 2% applies on assessed value. The Grundbuch entry fee of 1.1% still applies. These rates make intra-family property gifting relatively affordable in Austria.
Exemptions and Special Cases
Certain transfers are fully exempt from Grunderwerbsteuer: transfers to establish or dissolve a co-ownership; transfers pursuant to certain inheritance proceedings; and acquisitions by public authorities for public purposes. Restructuring transfers between companies in the same group may also qualify under specific provisions. These are technical areas requiring tax advice.
Key Facts at a Glance
| Factor | Detail |
|---|---|
| Standard rate | 3.5% of purchase price |
| Family transfer rate | 2% of assessed value |
| Land register fee | 1.1% (separate charge) |
| Total transfer cost | ~4.6% (standard) |
| Assessed by | Finanzamt using Grundstückswert tables |
Common Mistake
Expert Tip
Frequently Asked Questions
Is Grunderwerbsteuer deductible?
For investment properties, it forms part of the acquisition cost and is capitalisable — consult a Steuerberater for the tax treatment in your situation.
What if the purchase price is below assessed value?
The Grunderwerbsteuer is levied on whichever is higher — declaring a low price does not reduce the tax below the assessed value base.
Does the 1.1% Eintragungsgebühr apply to mortgages too?
Yes — mortgage registrations in the Grundbuch also attract a fee of 1.2% of the secured loan amount.