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Inheritance tax in Austria 2026
Austria abolished inheritance and gift tax in August 2008: estates and lifetime gifts of any size pass at 0%, to anyone.
Three residual costs survive: gifts must be reported above thresholds, Austrian real estate changing hands gratuitously bears the property transfer tax, and endowing a private foundation costs a 3.5% entrance tax from 2026.
At a glance
- top rate
- 0% — no inheritance or gift tax
- entry band
- 0% on gifts of any size
- tax year basis
- Not applicable — no tax event at death
- filing deadline
- Gift reporting within 3 months above thresholds
- residency basis
- Applies equally to residents and non-residents
- regime flag
- Foundation endowments: 3.5% entrance tax (25% punitive rate)
Rates
Death and gifts (2026)
| Rate | Base | Applies to |
|---|---|---|
| 0% | — | Inheritances and gifts of any size — no tax since 1 August 2008 |
| Property transfer tax | Property value (graduated low rates for family transfers) | Austrian real estate passing by inheritance or gift |
| 3.5% | Value endowed | Contributions to private foundations and comparable trusts (2.5% before 2026) |
| 25% | Value endowed | Punitive foundation rate — opaque or non-cooperative foreign structures |
Thresholds & allowances
- Gift reportingAbove €50,000 among relatives within 1 year; above €15,000 for others within 5 years
A notification duty only — no tax
Residency
Residency trigger
With no tax, residence matters only for the residual duties: the foundation entrance tax triggers when the founder or the foundation is Austrian-resident.
Non-resident treatment
Foreign heirs of Austrian assets face no Austrian death taxes; Austrian real estate still passes through the property transfer tax at modest family rates.
Notes
- Austria's constitutional court struck down the old inheritance tax and parliament let it lapse — periodic proposals to reintroduce one have not passed.
- Inherited assets keep their tax history: heirs inherit the deceased's cost basis and holding periods for later capital gains purposes.
- The 25% punitive foundation rate applies to non-transparent structures, missing paperwork or non-cooperative jurisdictions.
- Cross-border families should check the other country's rules — Austria not taxing does not stop Germany or France from taxing their residents' inheritances.
FAQ
Does Austria have inheritance tax?
No — abolished on 1 August 2008. Estates and gifts pass at 0%, with only reporting duties (gifts above €50,000 among relatives within 1 year, €15,000 for others within 5 years) and property-transfer tax on Austrian real estate.
What does it cost to put assets into an Austrian private foundation?
A 3.5% foundation entrance tax from 2026 (up from 2.5%) — rising to a punitive 25% for opaque or non-cooperative structures.
Figures: tax year 2026, compiled from public sources. Not tax advice.