Austria: Proposed changes to real estate transfer tax rules on share deals
New rules are proposed to apply to transactions after June 30, 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