Real Estate Income Tax from 2027: Selling Business Property and What Changes for Old Holdings

In Austria, real estate income tax on old holdings rises for property sales after 31 December 2026: the flat-rate acquisition costs fall from 86 to 80 per cent of the sale proceeds, so the effective tax rises from 4.2 to 6 per cent. For rezoned land the flat rate falls from 40 to 30 per cent and the effective tax rises from 18 to 21 per cent. On sale proceeds of one million euros that is 18,000 euros more, with rezoning 30,000 euros. For property held in a GmbH nothing changes.

Anyone who wants to go about selling your company with business property attached should look at the property separately: it follows different tax rules from the shares. This article shows the change, works through examples and names what is not documented. As of 08.10.2026; an overview, not tax advice.

What has been enacted?

The Budget Accompanying Act 2027-2028 changes the flat rates in § 30(4) EStG. It was published in the Federal Law Gazette on 29.07.2026 (BGBl. I No. 62/2026, Article 25).

Point	Before	New
Old holdings, flat-rate acquisition costs (§ 30(4) no. 2 EStG)	86 % of sale proceeds	80 %
Effective tax (rate 30 %)	4.2 %	6.0 %
Old holdings with rezoning after 31.12.1987 (§ 30(4) no. 1 EStG)	40 %	30 %
Effective tax (rate 30 %)	18 %	21 %
Tax rate	30 %	unchanged 30 %
Application	–	to property sales after 31.12.2026

Old holdings are property that was no longer tax-liable on 31.03.2012; in practice, acquisitions before 31.03.2002. The statutory text refers to the "sale of property". The advisory firms (EY, Grant Thornton and others) uniformly read that to mean the binding obligation counts, that is the binding purchase contract and not payment or entry in the land register. That is interpretation, not an express statutory provision.

A contract concluded on 29.12.2026 is, on this reading, still subject to the old rates, even if the purchase price is paid only in January. That does not apply to an offer that is accepted only in January.

Who is affected in a business sale?

Everyone who holds property as a natural person or in the business assets of a sole proprietorship or partnership.

Owner	How taxed	Effect of the change
Private individual (property leased to the GmbH)	real estate income tax 30 %	directly affected
Sole proprietor, partnership (business assets)	real estate income tax 30 % on the land share	affected, as we understand it (see below)
GmbH	corporate income tax 23 %	not affected

For business property of natural persons, the flat rate applies, according to the Economic Chamber (position before the reform), also in the business sphere for land. Because the same provision was amended, applying the new rates is likely. We found no express confirmation in the advisory literature after the reform. That is to be clarified with your tax advisor. Buildings in business assets, by contrast, were already tax-liable before 2012: tax is based on proceeds less residual book value, and the flat rate does not apply to them.

Typical is private property on which the GmbH runs its business and which is to be leased to the buyer or sold with the business. In a share sale it often stays with the owner; the change then matters only when the property is sold later.

What does it cost in euros?

On one million euros of sale proceeds it is between 18,000 and 30,000 euros more, for the GmbH nothing. Assumptions: old holding (acquired before 31.03.2002), contract after 31.12.2026, no exemption, no option for regular taxation, tax rate 30 per cent, without the rezoning surcharge.

Case	Before	New	Additional burden
Private individual, no rezoning	base 14 % = 140,000 euros, tax 42,000 euros	base 20 % = 200,000 euros, tax 60,000 euros	18,000 euros
Private individual, rezoning after 31.12.1987	base 60 % = 600,000 euros, tax 180,000 euros	base 70 % = 700,000 euros, tax 210,000 euros	30,000 euros
Sole proprietor, business assets: 400,000 euros land, 600,000 euros building (residual book value 250,000 euros)	land 16,800 euros, building 105,000 euros, total 121,800 euros	land 24,000 euros, building 105,000 euros, total 129,000 euros	7,200 euros
GmbH, book value 300,000 euros	gain 700,000 euros, corporate tax 23 %: 161,000 euros	unchanged 161,000 euros	0 euros

For rezoning after 31.12.2024 the rezoning surcharge of 30 per cent from the Budget Accompanying Act 2025 is added: the effective burden then rises from 23.4 to 27.3 per cent, in the example from 234,000 to 273,000 euros (additional burden 39,000 euros). For the sole proprietor the change affects only the land share. Applying the new flat rate in business assets is, as above, not expressly confirmed. For the GmbH, corporate tax of 24 per cent applies to portions of income above one million euros from financial years beginning after 31.12.2027; a shareholder current account can trigger its own tax consequence from 2027, see shareholder current accounts from 2027.

What does not change?

The tax rate, the exemptions and, as far as we checked, the procedure. According to advisory commentary, the main-residence exemption and the self-builder exemption remain unchanged. Real estate income tax is calculated and remitted by the party representative, usually the notary or lawyer; according to the Economic Chamber by the 15th of the second following month. We found no change to the half-rate taxation for business disposals.

We have not conclusively reviewed transitional rules and special cases. Clarify individual questions with your tax advisor.

How does this relate to the business sale?

The property is a negotiating item of its own. Buyers often want to buy it too or lease it long term. Three constellations are common:

• Sale of the GmbH shares, property stays private. The buyer leases. No real estate income tax arises; the lease is a value driver and is reviewed in due diligence.
• Sale of shares and property together. The change counts for the property part, provided the contract is concluded after 31.12.2026. The purchase price must be allocated, and the allocation must be at arm's length.
• Asset deal. For sole proprietorships and partnerships, real estate income tax arises on the land share, alongside income tax on the remaining gain. The mechanics are shown in the article on the asset deal in Austria.

What remains in total after tax when selling an Austrian GmbH is covered in the article taxes on a company sale.

Is it worth bringing a sale forward into 2026?

For a single property a contract by year-end may be possible; for a business as a whole it is hardly realistic. Our assessment: whoever wants to sell a property anyway and has a buyer can consider concluding the contract in 2026. For old holdings without rezoning the tax advantage is 1.8 per cent of the proceeds. A sale under time pressure easily costs more than it saves: price, negotiating position and warranties suffer first. For a business sale that begins today, a contract by 31.12.2026 is hardly achievable.

FAQ

When do the new rates apply?

To property sales after 31.12.2026. On the advisers' reading, the binding obligation decides, that is conclusion of the purchase contract.

What is an old holding?

Property that was no longer tax-liable on 31.03.2012. In practice: acquired before 31.03.2002. Flat-rate acquisition costs apply to it instead of the actual ones.

How high is the tax in future?

For old holdings without rezoning, an effective 6 per cent of the sale proceeds (previously 4.2 per cent). With rezoning after 31.12.1987, an effective 21 per cent (previously 18 per cent).

Does the change apply to property held in a GmbH?

No. A GmbH taxes the gain with corporate income tax. The flat rate for old holdings concerns natural persons.

Does it apply to business property of sole proprietors?

Yes, as we understand it, for the land share. We found no express confirmation after the reform in the advisory literature. Clarify this with your tax advisor.

Does the half-rate taxation for business disposals change?

We found no change. By our review, the Budget Accompanying Act does not touch § 24 EStG.

Sources: Budget Accompanying Act 2027-2028, BGBl. I No. 62/2026, Article 25 (ris.bka.gv.at); EY Austria, government bill on the Budget Accompanying Act 2027-2028 (11.06.2026); Grant Thornton Austria, Budget Accompanying Act 2027/2028: what changes for tax (05.08.2026); KPMG Austria, Tax Flash 4/2026 (10.06.2026) and Tax News KMU (21.07.2026); Deloitte Austria, Budget Accompanying Act 2027-2028: highlights (12.06.2026); Brandauer Rechtsanwälte (10.06.2026); Austrian Economic Chamber, taxation of business property sales (as of 01.05.2026). Calculations: own calculation. As of 08.10.2026. Overview, not legal or tax advice.

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