Jul 30th 2025
Real estate transfer tax 2025: What the 75% rule means for private buyers
What is the real estate transfer tax 2025?
Real estate transfer tax (GrESt) is payable in Austria on the acquisition of a property or shares in a property company. The Budget Accompanying Act 2025 lowers the relevant participation threshold for taxable shareholding mergers and changes of shareholder from 95% to 75%; at the same time, the observation period is extended from five to seven years.(fwp.at, bmf.gv.at)
In short: anyone who receives three quarters instead of almost all of the shares in future will have to pay 3.5 % GrESt on the fair market value (≙ market value) of the properties held in the company.
| Event date | Event | Significance |
| 14 May 2025 | Legislative resolution in the National Council | Start of the six-week announcement period |
| 1 July 2025 | Entry into force | All tax liabilities from this date onwards are subject to the new 75% rule |
| 30 June 2025 | Last day of old legal situation | Share deals > 75% should be notarised and reported by then |
Why is the 75 per cent rule being introduced?
Politicians and tax authorities want to prevent "RETT blockers" - models in which 5% + x of the share capital is deliberately retained by third parties in order to avoid tax liability. With the lower threshold plus the inclusion of indirect shareholdings, this room for manoeuvre is significantly restricted.(fwp.at, bmf.gv.at)
For private buyers, this means: transparency increases, tax-saving models on a share basis become less attractive, classic asset deals (direct purchase of the property) become more competitive again.
Am I affected as a private buyer?
| Scenario | Is something changing? | Explanation |
| Purchase of a single-family home by purchase contract | No | The tax rate remains 3.5 % of the purchase price. |
| Acquisition of 100 % of a property limited liability company (share deal) | Yes | From July 2025, full RETT on market value, not just 0.5 %. |
| Participation in a project developer with a 30% share | Possible | If the shareholding in the family group is increased to ≥ 75%, this will trigger RETT in future |
| Gift within the family circle | Partial | Favourable treatment (0.5 %) remains, provided all parties belong to § 26a family circle. |
Practical examples: Old vs New
Example 1 - Share deal
A GmbH holds real estate with a market value of € 2 million. Two investors each buy 40% and 35% of the shares (75% in total).
Before 1 July 2025: No RETT because the 95% threshold is not reached.
From 1 July 2025: 3.5% RETT × €2 million = €70,000.
Example 2 - Property within the family
Parents (60 %) transfer a further 20 % to their children. The total share remains within the § 26a family.
Result: RETT still only 0.5 % of the property value.
7-point checklist before buying
- Check purchase structure: Share deal or classic purchase?
- Extrapolate shareholding ratios: Also include indirect shares.
- Observe the observation period: Retrospectively analyse seven years.
- Determine the market value: Basis for land transfer tax for share deals.
- Clarify family benefits: Do all parties belong to the family circle?
- Adjust financing: Calculate the potentially higher tax.
- Involve a tax advisor: Get a professional review before signing the contract.
Conclusion & recommendations for action
Nothing will change for most traditional home purchases. However, anyone acquiring shares in a property holding company will have to expect noticeably higher costs from 1 July 2025. Check purchase structures at an early stage, request market value appraisals and seek tax advice.
Are you planning a purchase in 2025?
Arrange an initial consultation now - we will analyse your situation and show you the most favourable purchase structure.