Real Estate Transfer Tax Reform 2025 – A Paradigm Shift for Share Deals

The real estate transfer tax has always been an integral part of property transactions in Austria. In addition to classic asset deals, share deals – the acquisition of company shares – have also been subject to tax under certain conditions. With the 2025 Budget Accompanying Act, however, a major shift is underway, particularly affecting share deals.

At the heart of the reform is the lowering of the ownership threshold: in the future, acquiring 75% or more of company shares within seven years will trigger real estate transfer tax liability – down from the previous threshold of 95% within five years. Indirect transfers of shares will also be captured. The percentage threshold is calculated by multiplying the ownership shares at each level, and treasury shares are excluded from the calculation.

Another major change: the standard tax rate of 3.5% will now also apply to share deals if the property belongs to a real estate company. Such companies are defined as those whose assets mainly consist of real estate or whose income derives primarily from selling, renting, or managing property. All other cases, especially intra-family transfers, will continue to benefit from the reduced rate of 0.5%.

The tax debtor in the case of a change in shareholders will be the company itself. In the case of a share unification, the tax is owed by the person or group in whose hands the shares are ultimately combined. Legal representatives involved in the transfer are obligated to report and potentially calculate the tax.

The new provisions will come into force on July 1, 2025, and apply to acquisition transactions where tax liability arises on or after that date. Tax-efficient structures that were previously legal may lose their advantage.

The legislature’s intention is clear: to bring share deals in line with asset deals from a tax perspective. Companies and investors should review existing structures and carefully plan future transactions to avoid unexpected tax burdens.

Conclusion: This reform is more than just a legal update – it fundamentally redefines the taxation of share deals. Now is the time to act and adapt to the new framework.