The draft tax bill of the Tax Amendment Act 2015/2016 in Austria provides for new rules on the taxation of gratuitous real estate transfers, including amendments to the current tax regime as well as the introduction of new liberal tax rates.
At the moment in Austria, gratuitous transfers of property within families are subject to a beneficial tax rate which totals 3x the value of an assessed taxed real estate value, with a reduced tax rate of 2%. The draft bill will allow for reforms in determining the same tax rate for all gratuitous property transfers, and will introduce progressive tax schemes from 0.6% to 3.6%.
For the correct allocation of the applicable tax rate, all complimentary transfers of real estate affected between the same people within a five year time frame will have to be accounted for.
Lastly, a new provision applicable to gratuitous transfers will allow for paying property tax using annual instalments over five years, with experts predicting that the downside will be that the amount of real estate transfer tax that is payable tax will have to be significantly augmented.