Owning Austrian Property as a Non-Resident 2026: Limited Tax Liability and Rental Income

Owning Austrian property as a non-resident in 2026: limited tax liability

Once you complete Meldeamt Abmeldung and become resident abroad, you switch from unbeschränkte Steuerpflicht to beschränkte Steuerpflicht under §1 Abs. 3 EStG. Beschränkte Steuerpflicht means Austria taxes only Austrian-source income, of which real estate is the most common: rental income (Einkünfte aus Vermietung und Verpachtung under §28 EStG), capital gains on sale (Immobilienertragsteuer under §30 EStG — see our Immo-ESt guide), and certain land-related income (e.g. forestry under §21 EStG).

The DBA (Doppelbesteuerungsabkommen) between Austria and your destination assigns primary taxing rights to the country where the property is located (Article 6 OECD Model). Austria therefore retains full taxation on Austrian property income; the destination country either exempts the income (Befreiungsmethode, common in DBAs with Germany, Switzerland, Italy) or taxes it again with credit for Austrian tax paid (Anrechnungsmethode, common with USA, UK, France, Spain). Either way, you typically file in both countries.

Annual obligations: E1 + E1b for rental income

As a non-resident landlord, you must file an Austrian Einkommensteuererklärung (form E1) plus the rental Anlage E1b for each Austrian property generating income. Filing deadline: 30 June of the following year via FinanzOnline (still accessible from abroad with ID Austria), 30 April for paper. The rental income is computed as gross rent minus deductible expenses: Werbungskosten (advertising, brokerage), Erhaltungsaufwand (maintenance), property tax (Grundsteuer A/B), management fees, insurance, mortgage interest, and AfA depreciation at 1.5% per year for residential buildings (§16 EStG).

The taxable Vermietungseinkünfte are subject to Austrian progressive income tax. As a beschränkt steuerpflichtiger Vermieter, you do NOT receive the basic personal tax allowance (€13,308 in 2026 for residents); instead, your tax liability starts from the first euro. However, the rates remain the same: 0% up to €13,308 → 20% up to €19,948 → 30% up to €30,000 → 40% up to €60,000 → 48% up to €90,000 → 50% up to €1,000,000 → 55% above. Many non-resident landlords find their effective rate around 25-40%.

Comparison: typical scenarios for non-resident Austrian landlords

VAT (USt) on rental: short-term versus long-term

Long-term residential rental (Mietvertrag for 6+ months at Hauptwohnsitz) is exempt from VAT under §6 Abs. 1 Z 16 UStG. No VAT charged, no VAT deduction on rental expenses. Short-term rental (holiday lets, Airbnb-style) is subject to 10% reduced VAT rate (UStG §10 Abs. 2 Z 4) and qualifies for VAT deduction on related costs. Mixed-use properties require apportionment.

For Airbnb hosts: in addition to 10% VAT, the Bundesland-specific Ortstaxe (tourist tax) applies, ranging from €1.20-3.50 per guest per night (Vienna €3.50, Salzburg €2.50, Tirol €2.00-3.00). Most Bundesländer require registration with the Gemeinde and quarterly Ortstaxe filings. As of 2026, all major platforms (Airbnb, Booking.com, Vrbo) provide automated reporting to Austrian Finanzamt under the EU DAC7 Directive — undeclared income is detected within 6-12 months.

Property management from abroad: in-person versus remote

Austrian rental property is impractical to manage personally from outside the EU. Standard practice: appoint a Hausverwaltung (property manager). Typical fees: 3-5% of gross rent for long-term residential, 12-25% for short-term/Airbnb. The Hausverwaltung handles tenant communication, deposits, repairs, Mietvertrag renewals, and Mietzinsbuch (rent ledger). Major Austrian providers: Wohnimmobilientreuhänder Mehl, ÖRAG, EHL Immobilien, IMMOdeluxe, Otto Immobilien Hausverwaltung.

Steuerberater (tax advisor) for the annual E1/E1b filing is a parallel necessity. Fees for a single rental property: €400-900/year. For multiple properties or short-term rental, expect €1,200-3,000/year. Combined with Hausverwaltung fees, the total professional cost runs 5-10% of gross rent.

Mortgage and bank cooperation when non-resident

Existing Austrian mortgages on your property continue normally after emigration — banks cannot accelerate the loan based on residence change alone, provided you maintain payments (typically auto-debit from an Austrian Girokonto — see our bank account guide). New mortgages or refinancing as a non-resident are difficult: most Austrian banks require Austrian residence for new lending. If you need to refinance, do so before Meldeamt Abmeldung. Some specialist lenders (Hypo Tirol, Raiffeisen Landesbank Niederösterreich-Wien) offer non-resident lending at 0.5-1.5% premium over resident rates.

Grundsteuer and municipal obligations

Grundsteuer (property tax under Grundsteuergesetz) is a municipal tax based on Einheitswert plus Hebesatz (typically 350-500%). Annual amounts are modest by EU standards: €100-800/year for typical Austrian flats and houses. The municipality bills directly to the property owner — update your address with the Gemeindeamt to receive bills abroad, or assign your Hausverwaltung as Zustellbevollmächtigter.

Müllabfuhr (waste collection), Wasser/Kanal (water and sewerage), and Hausverwaltungs-Vorschreibungen (apartment building maintenance reserve, Wohnungseigentumsgesetz §31) continue to be billed. Average annual non-tax property costs in Austria: €1,500-4,500 for a typical apartment (excl. rental expenses), €2,500-8,000 for a house.

Inheritance and gift tax: specifics for non-residents

Austria abolished Erbschafts- und Schenkungssteuer in 2008, so neither inheritance nor gift tax applies to Austrian property transfers between living owners or upon death — a meaningful advantage over Germany (up to 50%), France (up to 60%), Spain (variable). However, Grunderwerbsteuer (3.5% real estate transfer tax) still applies on most transfers, including inheritance: the heir pays 3.5% on the Einheitswert (which is significantly below market value, often 10-30%) plus 1.1% Eintragungsgebühr in the Grundbuch. Your destination’s inheritance tax may still apply on Austrian property — check the bilateral DBA on inheritance.

Selling later: capital gains for non-resident sellers

Non-resident Austrian property owners face the same Immobilienertragsteuer (Immo-ESt) at 30% on disposal as residents. Hauptwohnsitzbefreiung is generally not available because the property is no longer your Hauptwohnsitz at the time of sale (unless the 5-out-of-10 test was met before move plus sale within 12 months of Abmeldung). Herstellerbefreiung remains available for self-built properties. Notary handles withholding and remittance — see our Immo-ESt guide for full mechanics.