Private client—Austria—Q&A guide
Private client—Austria—Q&A guide

The following Private Client practice note provides comprehensive and up to date legal information covering:

  • Private client—Austria—Q&A guide
  • 1. How does an individual become taxable in your jurisdiction?
  • 2. What, if any, taxes apply to an individual’s income?
  • 3. What, if any, taxes apply to an individual’s capital gains?
  • 4. What, if any, taxes apply if an individual makes lifetime gifts?
  • 5. What, if any, taxes apply to an individual’s transfers on death and to his or her estate following death?
  • 6. What, if any, taxes apply to an individual’s real property?
  • 7. What, if any, taxes apply on the import or export, for personal use and enjoyment, of assets other than cash by an individual to your jurisdiction?
  • 8. What, if any, other taxes may be particularly relevant to an individual?
  • 9. What, if any, taxes apply to trusts or other asset-holding vehicles in your jurisdiction, and how are such taxes imposed?
  • More...

This Practice Note contains a jurisdiction-specific Q&A guide to private client in Austria published as part of the Lexology Getting the Deal Through series by Law Business Research (published: September 2020).

Authors: DORDA—Paul Doralt; Katharina Binder; Elmar Drabek; Siegfried Podda-Prewett

1. How does an individual become taxable in your jurisdiction?

Austrian resident individuals are subject to national federal income tax. There are no local income taxes. Any individual having a permanent home or his or her habitual abode in Austria is deemed to be an Austrian resident. Exemptions apply for individuals with holiday homes if they do not use them for more than two months a year.

Austrian resident individuals are taxable on their worldwide income, whether received in cash or in kind. Non-resident individuals pay tax on their Austrian-sourced income.

2. What, if any, taxes apply to an individual’s income?

Austrian income tax is levied on an individual's income from seven sources:

  1. agriculture and forestry;

  2. self-employment;

  3. trade and business;

  4. employment;

  5. investment;

  6. rent, lease payments and royalties; and

  7. other specified income, such as certain annuities and capital gains upon the disposal of certain privately held assets, in particular real property.

Income not covered by the above categories is not taxable.

Austria generally taxes income at a progressive tax rate, ranging from 0 per cent (for the first EUR 11,000 of annual income) to 50 per cent (55 per cent for income

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