You are set to inherit property – in Austria the first piece of good news is: there is no inheritance tax, it was abolished in 2008. What you do pay is the real estate transfer tax (Grunderwerbsteuer – for inheritance within the family at the favourable graduated rate of 0.5 to 3.5 %), the 1.1 % land register registration fee, and – if you later sell – the real estate capital gains tax (ImmoESt). The process runs through the estate proceedings (Verlassenschaftsverfahren) at the notary up to the entry in the land register. This guide shows step by step what to do, what it costs, and when keeping, renting or selling makes sense.
Inheriting property in Austria: the process step by step
Anyone who inherits property in Austria does not immediately become the registered owner – the path runs through a regulated procedure. Know these eight steps:
Step 1: Estate proceedings are opened
After the death, the estate proceedings (Verlassenschaftsverfahren) begin automatically. A notary conducts them as court commissioner on behalf of the district court. You do not apply yourself – the notary makes contact and records assets, debts and heirs.
Step 2: Declaration of acceptance of inheritance
As heir you declare whether you accept the estate. The conditional declaration (with inventory) protects you: you are liable for the estate's debts only up to the value of what you inherit. The unconditional declaration means full liability – when in doubt, the conditional option is the safe choice.
Step 3: Court transfer of the estate (Einantwortung)
With the transfer decree the court legally assigns the estate to you. This is the moment you become the owner – even before the land register entry.
Step 4: Entry in the land register
Based on the transfer, you are entered as owner in the land register. This incurs the 1.1 % registration fee on the value of the property.
Step 5: Pay the real estate transfer tax
For inheritance within the family circle the favourable graduated rate applies: 0.5 % on the first 250,000 euros, 2 % on the next 150,000 (up to 400,000) and 3.5 % above – calculated on the property value. There is no separate inheritance tax in Austria anymore.
Step 6: Have the property valued
Before deciding on the property's future, you should know its realistic market value. An independent valuation is the basis for every further decision – and, with several heirs, for a fair division.
Step 7: Decide – keep, rent or sell
Three paths are open: use it yourself, rent it out (ongoing yield, but management and tenancy law) or sell (immediate liquidity, especially sensible with several heirs or high renovation needs). The choice depends on your life situation, the location and the condition.
Step 8: When selling – mind the ImmoESt and process
If you sell the inherited property, the real estate capital gains tax (ImmoESt) applies. Crucial: the deceased's acquisition date and costs continue to count – not the inheritance. If the property was bought by the deceased before 31 March 2002, the favourable "old assets" rate of 4.2 % of the sale price usually applies. Then the normal sales process follows.
What does it cost to inherit a property? The costs at a glance
The costs of inheriting a property in Austria are manageable and clearly calculable:
Inheritance tax: none (abolished in 2008).
Real estate transfer tax: graduated rate 0.5 % / 2 % / 3.5 % of the property value (family circle).
Land register registration fee: 1.1 % of the value.
Notary / court commissioner: fees by tariff, depending on the estate value.
Real estate capital gains tax: only on a later sale, 30 % on the profit or 4.2 % for old assets.
An example: for an inherited apartment with a property value of 300,000 euros you pay roughly 0.5 % on the first 250,000 (1,250 euros) plus 2 % on the remaining 50,000 (1,000 euros) in transfer tax, plus 1.1 % registration fee (3,300 euros) – so about 5,550 euros excluding notary fees.
Inheriting property and tax in Austria: the essentials
On the topic of inheriting property and tax in Austria many confuse two things. There is no inheritance tax – the acquisition itself is not taxed. The property only becomes tax-relevant on sale: then the ImmoESt applies. Because the deceased's values carry over, a property long held in the family can be tax-favourable on sale (old assets, 4.2 %). The main-residence exemption can also apply if you establish your own main residence there. Because the assessment depends on the individual case, tax advice before selling is sensible.
[H2] Several heirs, compulsory portion and will
If several people inherit together, a community of heirs arises – decisions about the property must be made jointly. Often a sale is the only solution that pays everyone out fairly. Note the compulsory portion (Pflichtteil): close relatives (children, spouse) have a statutory minimum claim even against a will, to be settled in money. A will governs distribution but cannot fully override the compulsory portion. In case of disagreement or a complex constellation, early legal and property expertise is advisable.
Selling an inherited property: when it pays off
Selling an inherited property is often the most pragmatic solution – especially with a community of heirs, high renovation needs, or when the property is far from your own home. Advantages: immediate liquidity, clear division among heirs, no management effort. Key are a realistic valuation and clean handling including an ImmoESt check. How the sale works in Vienna specifically is explained in our guide to selling an apartment.
Passing on property during your lifetime
Many owners want to pass on property in Austria without later conflict – and arrange the transfer while still alive. Two ways are common: the gift (Schenkung) and the handover contract (Übergabsvertrag), often against a right of residence or usufruct. Tax-wise the same logic applies as for inheritance within the family: no gift tax, but real estate transfer tax at the graduated rate (0.5 % / 2 % / 3.5 %) and 1.1 % registration fee.
The advantage of a lifetime transfer: you keep control, can agree a lifelong right of residence or usufruct, and settle the compulsory portion in advance. Note that gifts in the last two years before death (and longer for close relatives) can be included in the compulsory-portion calculation. Those who plan early save their heirs effort and avoid conflict – a combination of notarial and tax advice is the best foundation.
Frequently asked questions (FAQ)
Do you pay inheritance tax on property in Austria?
No. Inheritance tax was abolished in Austria in 2008. Heirs instead pay real estate transfer tax (graduated rate 0.5–3.5 %) and the 1.1 % land register registration fee.
What does it cost to inherit a property in Austria?
Real estate transfer tax at the graduated rate (0.5 % / 2 % / 3.5 % of the property value), 1.1 % registration fee, plus notary / court commissioner fees. No inheritance tax applies.
Do I have to sell an inherited property?
No, you can keep, rent or sell it. With several heirs or high renovation needs, selling is often the fairest and simplest solution.
What tax applies when selling an inherited property?
The real estate capital gains tax (ImmoESt): 30 % on the profit. Since the deceased's acquisition date and costs carry over, a purchase before 31 March 2002 usually means the favourable old-assets rate of 4.2 % of the sale price.
How long does it take to register an inherited property?
It depends on the estate proceedings. After the court transfer (Einantwortung), the land register entry follows; the whole procedure takes several months depending on complexity.
Conclusion
Inheriting property in Austria is fiscally simpler than many fear: no inheritance tax, but calculable transfer tax and registration fee. The process via estate proceedings, court transfer and land register is clearly regulated. The real decision – keep, rent or sell – should rest on a sound valuation and, when selling, an ImmoESt check.
Have you inherited a property in Vienna and are wondering about the right step? LANDAA has discreetly guided heirs since 2009 – from an objective valuation and division among several heirs to the sale. Arrange a no-obligation consultation and gain clarity.
Note: This article provides general information and does not replace individual legal or tax advice.
