The New Real Estate Tax – Update 2013
The new real estate tax has been in effect since 1 April 2012. Under the new regulations, the 10-year holding period has been abolished; the tax rate is now 25% of the capital gain, regardless of the length of time between purchase and sale (previously: up to 50%).
For real estate purchased before 1 April 2002 (so-called old real estate assets) there is a lower flat rate: either 3.5% or, if the land was converted into building land after 31 December 1987, 15%.
There have been a number of developments in 2013. The 2013 Tax Amendment Act (Abgabenänderungsgesetz 2013) brought several changes in real estate taxation (a “reform of the reform“), some of them with retrospective effect. Recently, also, the newest income tax guidelines for 2013 were published; these clarify many obscure points.