Sep 17th 2025
KIM gone, GrESt new: Your update for Tyrol
Financing: KIM is history - audit remains
The KIM regulation ended on 30 June 2025, and since then the FMA has expected "common sense" lending on the basis of a circular (WIK) that defines the framework after the KIM expiry. For buyers, this means more flexibility (e.g. in terms of equity or maturities), but still strict plausibility and viability checks by banks.
What makes sense now
- Compare offers from 2-3 banks; actively weigh up fixed vs. variable interest rates.
- Budget calculation with buffer (interest rate change, maintenance).
- Coordinate subsidies (state/municipality) with loan ratio and term.
Real estate transfer tax: 75% in 7 years - what will change from 1 July 2025
In the case of share transfers (share deals), RETT is now payable as soon as 75% of the shares in a property-holding company change hands within 7 years (previously: 95% within a shorter period). The new regulation applies to corporations and partnerships as well as indirect acquisitions. The regular RETT rate of 3.5 % remains unchanged. In the case of reorganisations and syndicated investments, check the transition and attribution rules particularly carefully.
Brief comparison
- Before 1 July 2025: Threshold generally 95%, shorter observation period.
- Since 1 July 2025: 75% within 7 years, extended scope of application.
Tyrol special: TFLAG, dedication & municipal ordinance
Tyrol collects the Leisure Residence and Vacancy Tax (TFLAG) on the municipal side.
Important: This tax does not generally apply to commercial, tourist lettings - dedication and the respective municipal ordinance are decisive. The current 2025 guidelines including information on declaring vacancies can be found at the Province of Tyrol.
Tourism supports demand
Austria reported a record interim balance at the halfway point of summer 2025 despite a weak July - a tailwind for occupancy and daily rates in holiday regions such as Tyrol. This strengthens both value stability (owner-occupiers) and cash flow (investors).
Yes. The KIM Regulation expired on June 30, 2025; the FMA has published a WIK circular as a guideline. Banks have more discretion but continue to conduct strict checks.
Does the 75% rule also apply to GmbHs?
Generally, no – the relevant regulations are the zoning and municipal regulations. Check this before purchasing or rezoning.
Stable or increasing overnight stays support occupancy and ADR – and thus the profitability of holiday properties.
Conclusion
New options open up for Tyrol buyers in 2025: Credit institutions can structure more flexibly, while at the same time the GrESt requires precise planning for share models. Those who prepare the dedication/TFLAG and deal structure properly will benefit from robust tourism foundations - and turn a good location into a sustainable investment.
Sources & further links:
FMA - Expiry of KIM-VO & WIK circular (26. 06. 2025): https://www.fma.gv.at/kim-v-ende-fma-erwartet-stabile-kreditvergabe/
FMA - Residential property loans (KIM-VO 2022-2025, background): https://www.fma.gv.at/banken/wohnimmobilienkredite/
BMF - Specialist information (GrESt/ImmoESt, Budget Accompanying Act 2025): https://www.bmf.gv.at/rechtsnews/steuern-rechtsnews/aktuelle-infos-und-erlaesse/Fachinformation----Immobilien--und-Kraftfahrzeugbesteuerung%2C-Geb%C3%BChren-und-Bewertung/GrESt_ImmoESt_Info_PV.html
USP.gv.at - Grunderwerbsteuer (75% in 7 years): https://www.usp.gv.at/themen/steuern-finanzen/weitere-steuern-und-abgaben/grunderwerbsteuer.html
Land Tirol - Leitfaden TFLAG 2025 (PDF): https://www.tirol.gv.at/fileadmin/themen/tirol-europa/gemeinden/downloads/Leitfaden_zum_TFLAG_2025_inklusive.pdf
Statistik Austria - Presseübersicht (Rekord zur Halbzeit Sommer 2025): https://www.statistik.at/medien/pressemitteilungen
APA - "Nächtigungsrekord zu Sommersaison-Halbzeit" (27. 08. 2025): https://apa.at/news/tourismus-naechtigungsrekord-zu-sommersaison-halbzeit/
(Note: This article is an independent categorisation - not legal or tax advice. Please consult a tax advisor/lawyer for individual cases).