Tightening of exit taxation rules
If a natural person transfers their place of residence from Austria to another country, the hidden reserves in securities, shareholdings and other capital assets accrued up to the time of departure are subject to taxation. However, where the relocation takes place within the EU or EEA, natural persons may, upon application, opt for a deferral by having the tax not assessed.
Although the tax liability is determined, it only becomes payable (i.e. is assessed) when the relevant capital assets are actually disposed of. If the capital assets are subsequently sold abroad, the portion of the gain that was generated during the period of residence in Austria must be taxed retrospectively in Austria.
Recurring reporting obligation
The taxpayer or their legal successor (e.g. the heir) must now provide evidence that no event triggering the assessment (e.g. disposal of the asset) has occurred in relation to the tax liability that has not yet been assessed. This applies to all assessments issued after 30 June 2026 where the income determined at the time of departure exceeds €100,000 in total in a given assessment year. Such evidence must be provided annually, starting from the year of departure, and must be submitted by 31 December of the following year. If the annual proof is not provided or not provided in due time, this is deemed to constitute a fictitious disposal, and the tax that has not yet been assessed becomes payable.
One-off reporting obligation
For “legacy cases”, the law provides for a one-off reporting requirement. Legacy cases are all tax liabilities formally determined after 31 December 2005 and before 1 July 2026 that have not yet been assessed. If the amount for which the tax was originally not assessed exceeds €100,000, the taxpayer or their legal successor must provide evidence by 31 December 2026 that no event triggering the assessment has occurred to date. For legacy cases, there is no comparable mechanism under which a breach of the reporting obligation automatically leads to a deemed realisation.
The (recurring and one-off) proof can, for example, be provided by submitting a securities account statement, an extract from the commercial register or comparable confirmations, and must be filed in writing or via the “other submissions” function in FinanzOnline.
The Budget Measures Act 2026 will enter into force on the day following its promulgation, which is expected to be 1 July 2026.
Tip:
Relocating abroad may, under certain circumstances, lead to significant tax burdens. Tax planning and advisory support are therefore strongly recommended both before and after the relocation. If required, we would be pleased to assist you.