Tax

When you buy a holiday apartment, house or chalet in Austria, there are several tax aspects you need to be aware of.

Expert advice

All the tax-related aspects of your property purchase in Austria will be managed by the firm of Fritzenwallner-Gandler, one of the biggest accountancy firms in the region.

In order for your VAT refund to be approved, the following steps are required:

Step 1: Forecasts

A financial forecast must be provided for the purchased property. This must show positive forecast over a 20-year period. The following information is required:

• Finance (interest und repayment plan)
• Rental forecasts incl. anticipated use by owner
• Operating costs

Step 2: Tax registration

Once a forecast has been provided, registration can commence. Forms are filled out and other documents must be submitted, such as:

• Purchase agreement
• Rental agreement or operator agreement
• Credit agreement

Step 3: Taxpayer ID and VAT registration number

When all the above steps have been completed, you will receive an Austrian taxpayer ID and VAT registration number.

Step 4: Tax refund

In the quarter in which the VAT registration number is issued, the tax on payments made thus far can be reclaimed. During construction work, this step is carried out in the various building phases specified in the purchase agreement. In the event that the property has already been transferred, the refund is processed in one single step.

Step 5: Income tax and VAT declaration

Once transfer is complete, the property can be let. A quarterly sales tax declaration must be submitted as well as an annual declaration of income and sales tax.

ON THE HOUSE

We place great importance on customer service, and we want your purchase to go smoothly. That is why we will pay the costs for the first two steps outlined above, provided they are carried out by our partners at Fritzenwallner-Gandler.

Contact us