The parents lived in the house for a long time; now it is to be sold after the inheritance. That does not mean that the sale is automatically exempt from the Austrian real estate income tax for the heirs. Your own personal residential history can be crucial. This article explains the limited question of a possible main residence exemption for a privately inherited owner-occupied house or condominium in Austria; it does not calculate individual tax.
The parents' period of residence is not simply inherited
The official information on the main residence exemption expressly states that this is generally not inheritable. The long-standing main residence of the deceased person is therefore not by itself sufficient proof of exemption for a later sale by others. A disposal from the estate is not thereby automatically tax-free. [BEFREIUNG]
Our practical recommendation: Start with a person-related overview. Who is actually selling, which share is affected and who lived there when? “Family ownership for many years” is information about the history, but does not answer the personal exemption question. With multiple heirs, the use by each individual person remains visible.
Examine the appropriate route for the inherited property
§ 30 Absatz 2 Ziffer 1 EStG contains different main residence constellations. The variant from acquisition to disposal requires at least two continuous years; the other requires at least five continuous years within the last ten years. Vacating the main residence is part of each. [GESETZ]
In the case of gratuitous acquisition, the first route is not simply a new two-year period starting from the inheritance. The official information points to the requirement of a remunerated acquisition for that. For the five-out-of-ten rule, your own periods as a relative living there can count even before the later heir or recipient of a gift. What matters are your own qualifying periods of residence, not an addition of arbitrary family years. [BEFREIUNG]
A sibling case without a joint tax label
In the fictitious case, Sara and her brother inherit the parental home in 2025 and consider a sale in 2026. Sara had her actual main residence there continuously from early 2018 until the end of 2024. Her brother permanently moved out in 2010. Both have shares since the same inheritance event, but their personal usage histories differ markedly.
Sara has her own years before the inheritance and the other requirements checked to see whether an exemption applies. Her brother cannot simply adopt this result for himself. Conversely, the later date of inheritance alone does not mean that Sara’s earlier residence period would be irrelevant. The case illustrates the approach to examination, without confirming the tax treatment of a real house or a single share.
Registration date and actual living should be explained together
The official information describes the main residence as the centre of life interests. A list of registration dates is therefore an important starting point, but not a complete answer to every question of actual use. [BEFREIUNG]
Assign move-in, move-out and interruptions in a comprehensible way. Did you actually live there yourself or only stay overnight occasionally? Which dwelling was your centre of life at the respective time? Existing documents should be compiled truthfully. Do not create a retroactive declaration that is only designed to fit the desired tax outcome.
Do not omit vacating, extent and special use
When having a professional assessment carried out, also state whether you intend to continue living there after the sale, whether only part is being sold and whether areas were rented out or used otherwise. The statutory exemption is not merely a deadline calculation. Which building parts and which land are covered must match the actual property. [GESETZ]
As your own preparation, a short timeline per selling person with the associated documents is helpful. Add a sketch of the uses and the complete chain of acquisition. Unclear periods should remain marked as open, rather than appearing precise through rounded years.
First the assessment, then allocate the proceeds
Please ask the professional responsible for the tax handling for a comprehensible classification per share. Record which variant was examined and which facts were decisive for it. A joint sale may require several personal assessments.
Until these are clarified, do not plan to use an only hoped-for tax-free amount entirely for the next purchase. The purpose of the preparation is a reliable handling with correct information. A most favourable figure without the corresponding personal prerequisites would not be a sustainable basis for that.