How Can Steuerberatung Wien Help Filing Non-resident Property Taxes in Vienna?

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How Can Steuerberatung Wien Help Filing Non-resident Property Taxes in Vienna?

Vienna has become a well-known place for living, education, and resort-style pleasure. The continuous rise in property prices can verify that. The cos

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Vienna has become a well-known place for living, education, and resort-style pleasure. The continuous rise in property prices can verify that. The costs have grown by 50% in the previous decade. While attributing standard living, well-flourished infrastructure, trustworthy social security system, increased level of education, culture, and healthcare, there is no doubt Vienna is regarded as the best city to reside in. 

Along with the daily property acquisition problems, you also need to know about the local property taxes if you are keen to make a worthwhile investment in Vienna. Taxes in Vienna are fair; yet, they are owed at every stage of the property cycle; it is important to thoroughly envision the system before buying a property. In this post, we will discuss Steuerberatung Wien or tax advice in Vienna, rates of taxes, benefits, and exemptions offered to foreigners, among different tax-related problems. 

In Austria, everybody, including non-residents, is obligated to pay taxes in conformity with the national decree. Austria possesses a euro-continental model with big social security grants.  

 

One-time expenditure  

Property costs in Vienna, Austria are not below compared to any other European country or city. There are some legal norms for non-residents who want to purchase property in Vienna. Tax law in Austria is very particular too so let us clear out all the things. 

If you want to purchase or sell a property in Austria, it is good to assess all the expenditures before including:  

  • legal services charge 1 to 3% of a property cost;  
  • The commission of real estate agent is 3% if the property worth is more than 48,448 euros, or 4% if property worth is less than 36,336 euros, or 1,453 euros if the property worth is between 36,336 and 48,448 euros;  
  • legal charges, notary charges, and stamp duty charges from 1 to 2.5%;  
  • document compliance service and fess of Steuerberatung Wien shall be settled between the parties;  
  • Different taxes and duties are allowed at the property locale.  

It is strongly recommended to take the help of legal experts in contract making and various paperwork as every form should be filled and applied as per the State’s rules. 

 

Real estate buying taxes in Austria  

When purchasing a house or an apartment in Austria, one must be all set for nearly 10% of property value to be reimbursed as taxes, commissions, and fees for legal consultants and various experts. 

When owning a property, the customer disburses:  

  • 3.5% real estate transfer tax (2% if transfer among associated parties occurs);  
  • 1.1% real estate title listing charges to Land Register. And it is not applicable to a property used for scientific, educational, medical, and charitable work;  
  • 3.5% land acquirement tax. Applicable to any property.  

Elementary property  

VAT on real estate is 20%. It is previously added to property cost when purchasing a property for individual use and can be returned partly in 3 years. Property holders can claim in return the 20% VAT if they rent out the property. Yet, the rental earnings will be levied at the rate of 25% in this condition. Be informed that tax advisors could send an assessment to check the property’s intended use. 

Sale property  

Net earnings from selling a property will also be charged or taxed as business earnings at the tax rate of 25% (additionally 20% VAT). 

Maintenance of property  

In apartments, property tax and utility fees are already involved in monthly bills. Instead of water, electricity, gas, internet access, and telephone charges, one should pay TV license charges– 25 euros for every TV set in the house. The household costs are agreed upon by residents. In private residences, the property tax rate depends on the cadastral worth of a plot.  

Property transfer tax  

When real estate transfers occur within the nearby family circle, the triple approximated rateables value (covered at 30% of the moderate market value) accounts for the tax foundation, and a tax charge of 2% is applicable. For transfers linked to business reorganization under the Reorganization Tax Act, the twice-remanded regular rateables value is considered tax base.  

Rental tax  

The approved rate for corporate income tax is 25%, which is charged on net earnings. Net earnings are an entity’s income minus expenditures, remittance, and interest. 

The agreement fee for fixed-term occupancy or leasing agreements is 0.8-2%. 

The legal authorities of lessors and tenants are assured by Austrian law. States of Austria are allowed to set minimum and maximum rental charges.  

For home, apartment, and subletting rentals, you need to be all set to pay taxes too. Expenses like depreciation, repairs, maintenance, interest payments and administrative charges are conclusive. When disbursing income tax to a specific tax agency, you need to assess it individually.  

Yearly property tax  

The law related to a yearly property tax evolved in 1955, according to the Property Tax Act 1955. This tax is charged by the municipalities, which attain the complete sum of this tax. That being stated, the property tax amount is estimated by the Austrian tax headquarters based on the evaluated cost of the individual unit, as per sections 18 and 19 of the Property Tax Act.  

Ownership or possession taxes  

There is no daily tax imposed on buildings in Austria. In its place, Austria involves a land tax known as Grundsteuer. It is computed on estimated land value, which is a lot lesser than market value. For apartments, this tax is somewhat low (100 euros each year) and is involved in the monthly bills. Some public organizations involving schools, sports facilities, and medical and charitable organizations. For houses, this tax relies on cadastral work and real land use. 

Inheritance taxes  

For transfers among family members, the relevant property tax rate is lesser than the standard rate and differs based on the property’s worth and degree of affinity. 

 

Conclusion  

Real estate investment has a number of benefits. Not just can it be much profitable attempt, but there are also tax benefits that are offered with it. To know more about real estate investment and taxes, contact Steuerberatung Wien or steuerberatungskanzlei wien (tax consultant) on how you should move ahead with transactions, including real estate. 

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