What is the reason for the property tax

Property tax

In the following we would like to inform you about property tax.

Legal basis: Real Estate Tax Act 1955 - GrStG 1955, Federal Law Gazette 149/1955, as amended

General

The property tax is a property tax on domestic property. It is levied on the basis of federal law (land tax law) by the municipalities, which also receive the full income from this tax.

The assessment basis is the base tax amount determined by the Austrian tax office. This is calculated from the unit value of the respective property (economic unit) in accordance with the provisions of Sections 18 and 19 of the Land Tax Act.

Property tax base

It is between property tax

  • Property tax A: for agricultural and forestry assets
    and
  • Property tax B: for real estate

differentiated.

According to the Financial Equalization Act, the municipalities are empowered to apply a uniform assessment rate of up to 500 percent on the base tax base when setting taxes. The municipality sets the property tax by means of a notice.

•              Tax base x tax rate (max. 500 percent) = annual property tax

The property tax, if it exceeds 75 euros per year, will be collected in four installments on February 15, May 15, August 15 and November 15. Amounts of up to 75 euros are payable once a year by May 15th.

example

Property tax assessment amount of 50 euros times 500 percent assessment rate results in 250 euros in annual property tax, which is to be paid in four installments.

The property tax payer is the owner of the property. The property tax can, however, be passed on to tenants (proportionally) as part of the operating costs of a house. A statutory right of lien (§ 11 GrStG) is liable for the property tax including ancillary fees.

Property tax exemptions

Permanent property tax exemptions

The respective situation tax office decides on the existence of permanent property tax exemptions. Exemptions within the meaning of Sections 2 to 8 of the Real Estate Tax Act are for example provided for public transport routes, flowing waters and for land owned by local authorities that serve the public service or use.

Temporary property tax exemptions

In some federal states, due to state laws, temporary property tax exemptions can be granted by the municipalities, especially for newly created (subsidized) residential properties. The municipal office can provide more information.

Last update: January 1st, 2021