Tax Consultancy Austria
Steuerberater Innsbruck Häuser
Tax Advisor in Austria

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Renting

Renting Out Property in Austria: What Landlords Need to Know About Taxes

Whether it's an apartment, house, or commercial property – renting out real estate in Austria can be a lucrative source of additional income. However, it also comes with tax obligations. Those who want to declare their rental income correctly will benefit from professional tax advice. This overview highlights the key tax considerations – and when it makes sense to consult a tax advisor for rental income.

 

All-in-One Support for Real Estate Investors

 

We support our clients not only with tax matters but also with legal and organizational questions related to real estate rentals. From drafting contracts and choosing the right legal structure to optimizing your tax position and handling all accounting obligations, we provide a comprehensive service that ensures compliance, minimizes risk, and maximizes efficiency. Whether you’re just getting started or managing multiple properties, we are your reliable partner for all aspects of renting out property in Austria.

Tax Advisor Austria – How to Properly Declare Rental Income

Whether you are a private individual or a real estate investor, rental income from property in Austria is subject to income tax. Accurate reporting of your rental income – including deductible expenses and depreciation (AfA – Absetzung für Abnutzung) – is essential for compliant and efficient taxation. An experienced tax advisor ensures that no tax obligations are overlooked and helps you optimize your tax position.

If you rent out a holiday apartment in Austria, you may need to consider both income tax and VAT (Value Added Tax). For short-term rentals, the standard VAT rate may apply. We help you assess whether opting for VAT liability makes sense and how to avoid common tax pitfalls in the tourism and rental sector.

A tax advisor with expertise in rental income (Vermietung und Verpachtung) in Austria understands the complex regulations for both domestic and international landlords. We support you from your first rental contract through ongoing accounting to annual tax filings. Especially in cross-border scenarios – such as avoiding double taxation between Germany and Austria – qualified tax advice is essential.

Rent out your property the right way – with us by your side.

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Tax Advisor for Rental Property in Austria

 

Income from renting and leasing property in Austria is classified as income from letting and leasing under Section 28 of the Austrian Income Tax Act (EStG). It is subject to income tax in all cases, regardless of the amount.

Landlords who are residents of Austria must declare rental income in their annual income tax return. Foreign property owners with real estate in Austria are subject to limited tax liability and are also required to submit a tax return to the Austrian tax authorities.

 

Deductible expenses include depreciation, interest payments, maintenance, and property management fees. Tax advisor’s tip: The better your documentation, the greater the potential for tax savings.

 

Austria uses a progressive income tax system – meaning the higher your total income, the higher your tax rate. Income from renting and leasing is added to other sources of income (e.g., from self-employment or employment) and can therefore increase the overall tax rate significantly.

This makes it especially important to carefully document all expenses related to renting and leasing, as these costs reduce the tax base and can therefore significantly lower your overall tax burden.

 

  • Acquisition costs of the property can be depreciated over many years (AfA).

  • Repair and maintenance expenses are deductible either immediately or spread over several years.

  • Broker fees, loan-related charges, operating costs, and ongoing maintenance are also deductible and can further reduce your tax liability.

 

We gladly support our clients in identifying and recording all relevant expenses accurately, helping them to maximize their tax savings.

 

In general, many types of income from renting and leasing real estate in Austria are exempt from VAT (§ 6 (1) No. 16 of the Austrian VAT Act/UStG) – for example, the rental of offices, commercial spaces, or warehouses. However, in these cases, no input tax deduction is allowed.

Certain exceptions apply: Residential rentals, hotel accommodations, and campground rentals are subject to the reduced VAT rate of 10%.

 

 

 

Austria’s small business regulation (§ 6 (1) No. 27 UStG) exempts entrepreneurs from charging VAT if their annual turnover remains below €55,000 (as of 2025). This means:

 

  • No VAT has to be included on invoices.

  • No VAT returns must be submitted.

  • However, no input tax deduction is allowed under this rule.

 

This regulation can be useful for landlords with low rental income and few or no VAT-relevant investments. However, if you’re planning larger investments, it may be wise to opt out of the small business scheme in order to benefit from input tax deductions.