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Exemptions from the Real Estate Gains Tax
A) For primary residence
There is no capital gains tax if a property was used as a primary residence for at least two years without interruption, from the moment of acquisition to its sale, or if it was used as a primary residence for a period of at least five years during the last ten years without interruption.
B) For new-build buildings
The exemption also applies to self-made buildings (seller is also principal / builder) if these buildings were not used to generate rental income during a period of 10 years prior to their sale.
C) Further exemptions
Further exemptions are provided for exchanges in connection with the reallocation / consolidation of farmland and similar transactions, as well as the application of certain taxes to the speculations tax.
land acquisition taxes, taxes on the income of foundations, and inheritance / gift taxes during a period of three years prior to the sales transaction.
Self-assessment of the tax and filing of the tax return must be made by the “Finanzamt” online (via finanz-online) no later than on the 15th of the second month following the date the agreement was concluded.
Calculation of partial deductibles and the speculative gain
When calculating the speculative gain of “new cases”, any partially accelerated depreciation of production costs and the pro-rated depreciation of renovation cost (based on ten years) that were previously accounted for must be added to the taxable gain. According to Sec. 30 (3) Income Tax Act, these costs are included in the speculative gain and are therefore subject to the special tax rate of 25%.
In the event of the sale of leased properties defined as “old cases”, the sales profit will principally be subject to a flat 3.5% tax rate on the sales proceeds. However, added to this amount will be a 25% tax applied on 50% of the depreciated production costs accounted for during the last 15 years prior to the sale (normally depreciable over 15 years, in special cases over 10 years).al cases over 10 years).
Obligation to provide information to consumers
The real-estate agent’s information requirements
(1) Sec. 30 b KSchG consumer Protection Act: prior to concluding an agency agreement with the client (in the case of a “Consumer”), the agent has to hand over to the client – with the diligence of a proper real estate professional – a written statement indicating that it will act as an agent, and a list of all expected costs arising from the conclusion of the requested business transaction, including the agent’s commission. The amount of the commission must be stated separately; the agent must also inform that client of any economic or private relationship for the purpose of Sec. 6(4) third sentence of MaklerG (Real Estate Agency Act). When the agent – according to common business practice – can act as dual agent, the statement must bear explicit reference to this fact. In the event of any substantial change in circumstances, the agent must rectify the above documents accordingly. If the agent fails to fulfil this obligation before the client agrees to the brokered transaction, Sec. 3(4) MaklerG shall apply.
(2) The real estate agent has to provide the client with the required information (pursuant to Sec. 3 MaklerG) in writing. The information must in any case include all circumstances which are essential to assess the business transaction to be brokered.
Charge for the secondary residence
Information about charges for the secondary residence you find here
Website of the city Villach www.villach.at