Austrian Real Estate Transfer Tax - Indirect Changes In Shareholder Structure

Introduction

Under Austrian tax law, not only the transfer of Austrian real estate, but also the transfer or consolidation of 95% of the shares in a property-owning company, triggers a 0.5 % Austrian real estate transfer tax. The tax basis will essentially be the value of the underlying real estate. Such tax burden is equally triggered if at least 95 % of the shares in a property owning company are acquired or owned by corporations which are part of a tax group for Austrian corporate income tax purposes.

Trustee structures

In addition, the law deems any shares held in trust to be allocated for purposes of Austrian real estate transfer tax, directly to the trustor, thereby denying the recognition of a trustee's interposition. As a result, a mere trustee structure may not avoid Austrian real estate transfer tax.