Vacancy tax and secondary residence tax in Austria

Currently, a secondary residence tax ("Zweitwohnsitzabgabe") is enforced in Salzburg, Styria, Tyrol, Vorarlberg, and Carinthia.

Vacancy tax laws ("Leerstandsabgabe") have been established in Styria, Salzburg, Tyrol, and Vorarlberg.
Property owners are now facing demands from municipalities that have implemented these taxes. However, each federal state has distinct regulations, tax rates, and exemptions.

There are numerous exemptions across all federal states, such as for investment apartments, agriculturally used apartments, apartments that cannot be used for health reasons, or those serving professional purposes.

When confronted with such a tax notice, owners should have it legally reviewed to ensure compliance for the coming years.

The federal state of Vienna is also planning to introduce a secondary residence tax, to be levied starting in 2025. The only exceptions will be apartments that, despite proven suitable efforts, could not be rented at the local customary rent for a total period of six months. Thus, in Vienna, it also functions as a form of vacancy tax.

There are varying expert opinions on whether the state legislature has the authority to impose a vacancy tax. Regardless, such a tax interferes with the constitutionally protected fundamental right to property and can be seen as a concealed wealth tax. According to a ruling by the Constitutional Court, strict limits are placed on such taxes imposed by federal states, particularly concerning their amount. However, parliament has recently empowered the states to impose a vacancy tax through a constitutional amendment, thereby effectively bypassing these restrictions.

Article on shb-law.at