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Home»Economy»All about taxes and expenses for Austrian real estate

All about taxes and expenses for Austrian real estate

January 27, 2020

A tax deduction is taken for all real estate in Austria, the amount of which depends on the cadastral value for the dwelling, consists of a full federal rate, which is multiplied by the municipal coefficient. Also, along with the tax on residential real estate, there is a land tax, which is almost one hundred euros for the whole year. If you rent real estate located in the Austrian territory, then when forming the amount of rent, you need to take into account the amount of state tax. The profit will be taxed as follows: • If the profit is less than 10,000, then it is not taxed; • 38.333% of the amount of income, if the profit ranges from 10 to 25 thousand euros; • 43.596% of the amount when the profit is within 25-51 thousands of euros; • 50% of the total income over 51,000 euros. Foreigners should also take into account the fact that when leasing real estate in Austria, the state will impose additional restrictions on them, which consists in the fact that the so -called fictitious rate equal to 8,000 euros will be added to the tax base. In addition, it is necessary to take into account the fact that all expenses associated with the lease itself are taken away from the tax base. If we summarize, we note that this tax base consists of 8 thousand. Euro plus profit from rent and minus utility bills and other monthly expenses related to lease. And since the spouses of taxes pay separately, then the fictitious rate for the family will be 8 and 16 thousand euros, which will be stacked with the tax base, to calculate the tax amount. Know that if you subtract all monthly, and not only, the costs associated with the lease, then the actual amount of tax decreases and stops somewhere at the level of 25-35% of the total profit. Monthly expenses for the maintenance of real estate are consisted of three articles – these are water (1.0072 euros per cubic meter), communal fee (from 100 to 300 euros per calendar month) and electricity (0.14 euros per 1 kilowatts).

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