Austria: Proposed changes to real estate transfer tax rules on share deals

New rules are proposed to apply to transactions after June 30, 2025.

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May 20, 2025

The Ministry of Finance on May 2, 2025, published the draft Budget Accompanying Act 2025, a major part of which is a reform of the Austrian real estate transfer tax (RETT) rules intended to effectively equalize asset deals and share deals in real estate transactions. Read TaxNewsFlash

  • Currently, RETT is only triggered if at least 95% of the shares in an entity owning Austrian real property are transferred or unified, but under the proposal the threshold would be reduced to 75%, and indirect transfers would also be considered. 
  • The tax rate and base in transactions involving so-called “real estate entities” would also be changed to 3.5% of fair market value (as in case of an asset deal), rather than 0.5% of real estate value.

The new rules are proposed to apply to transactions after June 30, 2025, subject to a transition rule.

Read a May 2025 report prepared by the KPMG member firm in Austria

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