Insights
INTERNATIONAL TAX
Tightening of Exit Tax
According to the Budget Measures Act 2026, passed by the National Council on 10 June 2026, the exit tax on the departure of natural persons within the EU and EEA is being tightened.
When a natural person moves their residence from Austria to abroad, the unrealised capital gains on securities, shareholdings and other capital assets accrued up to the date of departure are subject to tax. However, where the departure takes place within the EU or EEA, natural persons have the option, on application, not to have the tax assessed and thereby obtain a deferral.
The tax liability is nevertheless calculated, but it is only payable (assessed) once the disposal of the relevant capital assets actually occurs. If the capital assets are later sold abroad, the portion of the capital gain that accrued while the taxpayer was resident in Austria must be taxed retrospectively in Austria.
Recurring reporting obligation
The taxpayer or the legal successor (e.g. the heir) must now demonstrate that, with respect to the unassessed tax liability, no assessment‑triggering event (e.g. disposal of the asset) has yet occurred. This applies to all assessments that are agreed in notices issued after 30 June 2026. The tightening applies where the income determined on the occasion of the departure exceeds EUR 100,000 in a tax year in total. The proof must henceforth be provided annually, starting from the year of departure and must be submitted by 31 December of the following year. If the annual proof is not provided or is submitted late, this is treated as a deemed disposal and the previously unassessed tax must be paid.
One‑off reporting obligation
For “legacy cases” the legislation provides for a one‑off proof requirement. Legacy cases are all tax liabilities that were formally assessed after 31 December 2005 but before 1 July 2026 and have not yet been assessed. If the amount for which the tax liability was originally not assessed exceeds EUR 100,000, the taxpayer or their legal successor must, by 31 December 2026, demonstrate that no assessment‑triggering event has occurred to date. For legacy cases no comparable mechanism is provided whereby a breach of the reporting duty automatically results in a realisation.
The (recurring and one‑off) proof can, for example, be provided by a brokerage statement, commercial register extract or comparable confirmations and must be submitted in writing or via the “other attachments” function in FinanzOnline.
The Budget Measures Act 2026 comes into force the day after its proclamation, which should be 1 July 2026.
Tip: A departure can, in certain circumstances, lead to high tax burdens. Tax planning and advice are therefore advisable both before and after the move. We are happy to assist you if needed.
The tax liability is nevertheless calculated, but it is only payable (assessed) once the disposal of the relevant capital assets actually occurs. If the capital assets are later sold abroad, the portion of the capital gain that accrued while the taxpayer was resident in Austria must be taxed retrospectively in Austria.
Recurring reporting obligation
The taxpayer or the legal successor (e.g. the heir) must now demonstrate that, with respect to the unassessed tax liability, no assessment‑triggering event (e.g. disposal of the asset) has yet occurred. This applies to all assessments that are agreed in notices issued after 30 June 2026. The tightening applies where the income determined on the occasion of the departure exceeds EUR 100,000 in a tax year in total. The proof must henceforth be provided annually, starting from the year of departure and must be submitted by 31 December of the following year. If the annual proof is not provided or is submitted late, this is treated as a deemed disposal and the previously unassessed tax must be paid.
One‑off reporting obligation
For “legacy cases” the legislation provides for a one‑off proof requirement. Legacy cases are all tax liabilities that were formally assessed after 31 December 2005 but before 1 July 2026 and have not yet been assessed. If the amount for which the tax liability was originally not assessed exceeds EUR 100,000, the taxpayer or their legal successor must, by 31 December 2026, demonstrate that no assessment‑triggering event has occurred to date. For legacy cases no comparable mechanism is provided whereby a breach of the reporting duty automatically results in a realisation.
The (recurring and one‑off) proof can, for example, be provided by a brokerage statement, commercial register extract or comparable confirmations and must be submitted in writing or via the “other attachments” function in FinanzOnline.
The Budget Measures Act 2026 comes into force the day after its proclamation, which should be 1 July 2026.
Tip: A departure can, in certain circumstances, lead to high tax burdens. Tax planning and advice are therefore advisable both before and after the move. We are happy to assist you if needed.