Private real estate

In the case of real estate held as private assets, this mainly concerns apartments, detached houses, apartment buildings, and building plots. The number of occasions on which properties are valued as private assets is increasing significantly every year, driven by a range of important factors – for example, declining confidence in statements made by estate agents or new legal requirements arising from changes in legislation.

The value of a property is relevant not only for its sale or purchase but also in cases of inheritance, divorce, intra-family transfers, or financing by a bank. Market value, notional acquisition costs, and the correct allocation of building and land value are also becoming increasingly important from a tax perspective.

In many private-sector locations (in Vienna, Graz, Linz, Salzburg, Innsbruck, and in areas with an average building land price exceeding €400 per square metre, such as Klosterneuburg or Mödling), the legally presumed land value ratio has been increased from the previous 20% to 40% (or 30%). This reduces the depreciable building value share to 60%, resulting in a considerable increase in the tax burden. However, it is possible to provide counter-evidence with an expert valuation report.