Austria Tax - Austria Bank Account

Go to content

Main menu:

Austria Tax

Austria Info

In Austria, the income tax for individuals in 2005 was progressively set up to 50% on a four-bracket progressive schedule: 21% (on taxable income from €3,640 to €7,270; 31% (€7,270 to €21,800); 41% (€21,800 to 50,870); and 50% above €51,000. Married people are taxed separately. Payroll withholding tax is in effect.
Taxes are levied on corporations (25% on distributed and undistributed profits), trade income, real estate, inheritance, dividends, gifts, and several miscellaneous services and properties. A value-added tax was introduced January 1, 1973 at a basic rate of 16%. The standard rate in 2005 was 20%. A reduced rate of 10% applied to basic foodstuffs, agricultural products, rents, tourism, and entertainment; banking transactions are exempt and exports are untaxed. There was also an augmented rate of 32% on automobiles, airplanes, and ships.

Capital gains and dividend income are taxed at 25% and are withheld at the source. There is no wealth tax. In accordance with EU guidelines, tax exemptions and reductions are included in incentive packages for investment in economically depressed and underdeveloped areas along Austria’s eastern border.


Nonresidents are taxed on their Austrian-sourced income. Married couples are taxed separately.


Income is taxed at progressive rates.



Up to €11,000   0%

€11,000 – €25,000   36.50% on band over €11,000

€25,000 – €60,000   43.21% on band over €25,000

Over €60,000   50% on all income over €60,000

Source: Global Property Guide


Taxable rental income is the excess of receipts over income-related expenses (werbungskoten). Expenses such as maintenance and repairs, depreciation, administrative expenses (including professional tax advice), interest payments and real estate tax are deductible.

Nonresidents suffer special penalties, the tax base of each nonresident individual being notionally increased by €8,000.


Capital gains realized from the sale of real estate held for more than 10 years are exempt from taxation. But properties sold within 10 years of acquisition are taxable, except if the property has served as the owner’s primary residence for the past two years or if the owner have erected or have the building erected himself.

Taxable capital gains for properties sold within the 10 years retention period will be considered as speculative (exemption stated above) and will be charged at the same rates as income tax. The acquisition cost will be deducted from the selling price to arrive at the taxable amount.



Property taxes in Austria are levied on the assessed value of real property, which is generally less than the prevailing market value. It is levied at a basic federal rate, multiplied by a municipal coefficient. The basic federal rate is generally 2% and the municipal coefficients range up to 500%.

The standard corporate income tax rate is 25%, which is levied on income and capital gains earned by companies. This rate applies to companies incorporated in Austria or foreign companies doing business in Austria.

Starting 2006, net rental income by nonresident individuals will also be taxed as business income at the tax rate of 25% if the property is part of his business abroad.

Privacy Policy for If you require any more information or have any questions about our privacy policy, please feel free to contact us by email at At, the privacy of our visitors is of extreme importance to us. This privacy policy document outlines the types of personal information is received and collected by and how it is used. Log Files Like many other Web sites, makes use of log files. The information inside the log files includes internet protocol ( IP ) addresses, type of browser, Internet Service Provider ( ISP ), date/time stamp, referring/exit pages, and number of clicks to analyze trends, administer the site, track user’s movement around the site, and gather demographic information. IP addresses, and other such information are not linked to any information that is personally identifiable. Cookies and Web Beacons does use cookies to store information about visitors preferences, record user-specific information on which pages the user access or visit, customize Web page content based on visitors browser type or other information that the visitor sends via their browser. DoubleClick DART Cookie .:: Google, as a third party vendor, uses cookies to serve ads on .:: Google's use of the DART cookie enables it to serve ads to users based on their visit to and other sites on the Internet. .:: Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy at the following URL - Some of our advertising partners may use cookies and web beacons on our site. Our advertising partners include .... Google Adsense These third-party ad servers or ad networks use technology to the advertisements and links that appear on send directly to your browsers. They automatically receive your IP address when this occurs. Other technologies ( such as cookies, JavaScript, or Web Beacons ) may also be used by the third-party ad networks to measure the effectiveness of their advertisements and / or to personalize the advertising content that you see. has no access to or control over these cookies that are used by third-party advertisers. You should consult the respective privacy policies of these third-party ad servers for more detailed information on their practices as well as for instructions about how to opt-out of certain practices.'s privacy policy does not apply to, and we cannot control the activities of, such other advertisers or web sites. If you wish to disable cookies, you may do so through your individual browser options. More detailed information about cookie management with specific web browsers can be found at the browsers' respective websites.
Back to content | Back to main menu