Inheritance and gift tax
Austria has levied neither inheritance tax nor gift tax since August 2008. What remains are transfer taxes on real estate and foundation endowments — and a notification duty most new residents have never heard of.
In short
- Austria levies no inheritance tax and no gift tax — both were abolished in August 2008 and never reintroduced.
- Gratuitous transfers of Austrian real estate still attract real estate transfer tax at graduated rates of 0.5% to 3.5% of the property value.
- Endowments to an Austrian private foundation are taxed at 3.5%; endowments to a foreign foundation or trust are taxed at 25% unless it is comparable, discloses its deeds and beneficiaries, is registered and its state gives full administrative assistance.
- Larger gifts must be notified to the tax office within three months — close relatives above EUR 50,000 per year, others above EUR 15,000 over five years. Intentional failure risks fines of up to 10% of the value.
- Foreign death taxes can still reach the family: US-situs assets, a German trailing liability, a UK residence tail.
No inheritance tax, no gift tax — since August 2008
Austria is one of the few European jurisdictions that taxes neither what you leave to your heirs nor what you give away during life. Inheritance and gift tax existed until 2008, when Austria's Constitutional Court struck down the charging provisions of both — the unit values on which the tax was computed had long ceased to bear any relation to real values — with effect from the end of July 2008. The legislature chose not to replace them, and both taxes lapsed. Since 1 August 2008, inheritances and gifts as such have been entirely untaxed — whatever the amount, whatever the relationship between the parties, and whether the assets are Austrian or foreign.
Reintroduction is a perennial of Austrian political debate: proposals surface regularly, usually around election campaigns, and have so far led nowhere. No reintroduction has been enacted and none is in force as of 2026. Sober planning takes the law as it stands while building in the flexibility to react — one of the reasons structures such as the Austrian private foundation are reviewed rather than improvised. Together with the absence of a general wealth tax, described on the wealth tax and other taxes page, this is a large part of Austria's appeal to wealthy families, and it changes what estate planning is for: in Austria the discipline is driven by succession law and the compulsory portion, not by tax.
What applies instead
The absence of inheritance and gift tax does not mean every gratuitous transfer is free of charge. Two transfer taxes survive, each tied to a particular kind of asset or recipient rather than to the gift as such.
First, real estate transfer tax applies when Austrian property changes hands without consideration — by gift or on death. The tax is computed on the property value — an official approximation of market value, which a lower appraised market value can replace — at graduated rates, applied by tranche, and gratuitous transfers to the same recipient over the preceding five years are aggregated — both those from the same donor and those of one and the same property from different donors — so the bands cannot be multiplied by splitting a gift or routing it through two donors. Transfers between close relatives — spouses, children, siblings and the like — are treated as gratuitous even where a price is actually paid. The mechanics of the tax in a purchase context are covered on the purchase process and costs page.
Second, foundation transfer tax applies to gratuitous endowments of assets to Austrian private foundations and comparable estates, including trusts. The rate is 3.5%, but it rises to 25% where the recipient is not comparable to an Austrian private foundation, has not disclosed its deeds to the tax office, is under no duty to name its beneficiaries, is not entered with its deed in a public register, or sits in a state without comprehensive administrative and enforcement assistance — conditions most common-law trusts do not meet. Real estate is carved out of this tax and falls under the real estate transfer tax bands instead, but a foundation transfer tax equivalent of 3.5% is then charged on top of those bands, so Austrian property endowed to a foundation bears roughly 4% to 7% in all. Certain financial assets — such as cash at bank or publicly placed bonds — are exempt when they pass on death.
| Gratuitous transfer | Charge | Rate (2026) |
|---|---|---|
| Austrian real estate — property value up to EUR 250,000 | Real estate transfer tax | 0.5% of that tranche |
| Austrian real estate — tranche EUR 250,000 to 400,000 | Real estate transfer tax | 2% |
| Austrian real estate — tranche above EUR 400,000 | Real estate transfer tax | 3.5% |
| Endowment to an Austrian private foundation | Foundation transfer tax | 3.5% of fair market value |
| Endowment to a foreign trust or foundation failing the comparability, disclosure or registration tests | Foundation transfer tax | 25% of fair market value (3.5% if every test is met) |
| Real estate endowed to a foundation or trust | Real estate transfer tax plus foundation transfer tax equivalent | 0.5–3.5% bands as above, plus 3.5% |
| Cash, securities, businesses, other movables given to individuals | None — notification only | 0% |
The 25% rate on endowments to foreign structures that fail those tests is one of the sharpest edges in the Austrian system for internationally mobile families — the background, and the distinction between transparent and non-transparent structures, is explained on the foreign trusts and foundations page.
The gift notification (Schenkungsmeldung)
Untaxed does not mean invisible. Austria pairs its zero rate with a reporting duty: gifts of money, receivables, shares in corporations, interests in partnerships, businesses, movable tangible assets and intangibles must be notified electronically to the tax office within three months of the gift, whenever the donor or the donee has a domicile, habitual abode, legal seat or place of effective management in Austria. The duty falls on donor and donee alike — either can file, but someone must.
Small and mid-sized family gifts stay out of scope through two thresholds. Gifts between close relatives — spouses, registered partners, direct-line relatives, siblings and other near family — need no notification up to EUR 50,000 per year. Between all other persons the threshold is EUR 15,000 measured over five years. Gifts already subject to foundation transfer tax are exempt from notification, and real estate is dealt with through the real estate transfer tax process rather than the gift notification.
| Relationship | Notification needed above | Measured over |
|---|---|---|
| Close relatives | EUR 50,000 | One year |
| All other persons | EUR 15,000 | Five years |
| Deadline | Three months from the gift, filed electronically by donor or donee | |
The sanction gives the duty teeth: intentional failure to notify can be fined at up to 10% of the fair market value of the assets transferred — on a large family gift, a wholly avoidable seven-figure exposure. For families arriving in Austria the notification is also a timing question. A gift completed while neither party is yet Austrian-resident falls outside the regime; the same gift made a month after arrival is squarely inside it. Sequencing transfers around the move is standard ground in pre-immigration planning.
Foreign death taxes can still reach the family
Moving to Austria removes Austrian inheritance tax from the picture — there is none. It does not, by itself, remove anyone else's.
Several foreign systems tax by reference to the situs of assets, the nationality of the deceased or a trailing period after emigration, and each survives a change of residence to Austria. The United States levies federal estate tax on the US-situs assets — real estate, and in principle US company shares — of persons who are neither US citizens nor US-domiciled, with an exclusion of only USD 60,000 and rates of up to 40%; an estate and gift tax convention between the United States and Austria can moderate the outcome, and US citizens remain within the US transfer-tax system entirely, as outlined on the US citizens page. Germany's extended unlimited inheritance-tax liability keeps German nationals within the German net for around five years after giving up German residence — longer in certain cases — so a German family's Austrian years may begin with a period in which both a German death and a German heir still trigger German tax on worldwide assets. The United Kingdom, since reforming its rules in 2025, ties inheritance tax to long-term residence with a tail of several years after departure.
None of this argues against the move; it argues for mapping the exposure country by country before it happens — which treaty applies, which assets should change situs or wrapper, and which transfers are better made before departure. That review belongs in the same pass as the income-tax work described on the pre-immigration planning page, and its results feed directly into the estate plan under Austrian succession law and, where a vehicle is wanted, into the choice covered across the wealth and succession pages.
Questions on this page
Do I have to report gifts to the Austrian tax office?
Often, yes. Gifts of money, receivables, company shares, businesses, movable assets and intangibles must be notified electronically within three months where the donor or the donee is Austrian-resident. Gifts to close relatives are exempt up to EUR 50,000 per year; for everyone else the threshold is EUR 15,000 over five years.
Is tax due when I give Austrian property to my children?
There is no gift tax, but gratuitous transfers of Austrian real estate attract real estate transfer tax at graduated rates of 0.5% to 3.5% of the property value, with transfers over the previous five years aggregated. Transfers between close relatives count as gratuitous even where a price is paid.
Could Austria reintroduce inheritance tax?
Reintroduction has been discussed politically ever since the tax lapsed in 2008, but no bill has ever been enacted. Planning proceeds on the law as it stands, while good structures keep enough flexibility to react if the law ever changes.
Can another country still tax my estate after I move to Austria?
Possibly. The United States taxes US-situs assets of non-US persons with only a small exclusion, Germany can keep its nationals within its inheritance-tax net for around five years after departure, and the United Kingdom applies a residence tail. Foreign exposure should be mapped country by country before the move.
Is endowing a foundation or trust free of tax in Austria?
No. Endowments to an Austrian private foundation attract foundation transfer tax at 3.5%. Foreign foundations, trusts and comparable estates pay the same 3.5% only where the structure is comparable to an Austrian private foundation, its deeds are disclosed to the tax office, it must name its beneficiaries, it is entered in a public register and its state gives comprehensive administrative assistance; otherwise the rate is 25%. Real estate is carved out and falls under real estate transfer tax instead, plus a foundation transfer tax equivalent of 3.5%.
Considering a move to Austria?
Tell us where you stand — the country you are leaving, the shape of your family and your assets, and when you plan to move. We advise on the legal and tax consequences of relocating to Austria and coordinate with advisers in the country of departure.
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