How inheritance tax works in Austria
Austria levies no inheritance, estate or gift tax. Assets passing on death or by lifetime gift reach the recipient with no Austrian succession charge in 2026.
Gifts above thresholds still need reporting to the tax office, but no tax is assessed. Real estate moves pay land-transfer tax instead: 3.5% standard with stepped 0.5% to 3.5% family rates on official values.
Endowing a private foundation costs 3.5% entry tax since 2026, plus 3.5% transfer tax on land inside. Heirs inherit cost basis for later capital-gains purposes.
Tax rates at a glance
- Estate tax
- 0%Abolished 2008
- Inheritance tax
- 0%
- Gift tax
- 0%
- Land transfer
- 3.5%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FamiliesInvestorsHigh earnersExpatsFamily offices
Watch out for
- Zero succession tax does not mean zero land tax. Every property inheritance or gift pays transfer tax on official values, with family relief only softening the bands.
- Gift reporting is mandatory above the thresholds. Skipping the notice risks penalties even though no tax follows.
- Foundation succession costs entry tax twice over on land: 3.5% entry plus 3.5% transfer. Direct gifts of property are cheaper than routing through a foundation.
- Foreign assets can face succession tax abroad. Austrian exemption does not shield property in countries that still levy estate tax.
Frequently asked questions
Does Austria have inheritance tax?
No. Austria abolished inheritance and gift tax in 2008, though land-transfer tax of 3.5% still applies to property moves.
Are gifts taxed in Austria?
No tax, but gifts above thresholds must be reported. Property gifts pay stepped transfer tax instead.
What does succession through a foundation cost?
A 3.5% entry tax since 2026, plus land-transfer tax on real estate, plus 27.5% interim tax on retained foundation income.