Austria MOF Clarifies Taxation of Private Real Estate Sales Subject to Resolutive Conditions

The Austrian Federal Ministry of Finance Aug. 28 posted Federal Finance Court Decision No. RV/5100793/2025, clarifying the taxation of private real estate sales subject to resolutive conditions. The taxpayer, an individual, sold a property on the condition that a building permit be granted within one year. The parties terminated the contract due to the condition’s non-fulfillment. The Tax Office assessed tax on the transaction, applying a 30 percent special tax rate. The taxpayer argued that because no actual income was realized, the tax should be refunded. On appeal, the Federal Finance Court found that: 1) the original sale constituted a ...