Abolition of the Property Tax Exemption in Vienna
Property Tax in Austria
Property tax is levied on real estate. The tax base is determined by the Austrian tax authorities on the basis of the property's assessed value (Einheitswert), resulting in a property tax assessment amount (Grundsteuermessbetrag), which is subsequently communicated to the relevant municipality. The annual property tax payable is calculated by multiplying this assessment amount by the municipality’s applicable multiplier (Hebesatz).
The tax liability generally rests with the owner or other eligible rights holder. Where there are multiple owners or beneficiaries, they are jointly and severally liable for the tax. Property tax is collected annually by municipalities under federal law. In addition, the Austrian federal provinces may provide for temporary property tax exemptions relating to building values through provincial legislation.
Previous Property Tax Exemption in Vienna
Until February 2026, Vienna granted a property tax exemption of up to 20 years under certain conditions. The exemption was available for:
- subsidised housing developments (including apartments, offices and commercial premises),
- newly constructed, extended, converted, added-on or integrated residential units, and
- newly established residential facilities.
Unimproved land and agricultural or forestry property were not eligible for the exemption. Furthermore, only buildings or parts of buildings benefited from the exemption; the underlying land remained subject to property tax even before February 2026.
Existing Exemptions Remain Protected
Since 24 February 2026, no new applications for property tax exemptions can be submitted to the City of Vienna.
However, exemption procedures that were already pending prior to the repeal of the Vienna Property Tax Exemption Act 1973 will continue. Applicants may also continue to submit documentation that was outstanding at the time of filing or subsequently requested by the authorities.
For exemptions that have already been approved, the remaining portion of the original 20-year exemption period continues to apply unchanged.
Practical Consideration
Property tax exemptions are not regulated uniformly across Austria. Investors and property owners should therefore review the specific rules applicable in the relevant municipality and federal province before acquiring real estate. An early assessment can help identify potential tax benefits and avoid unexpected costs.