After individual regulations were declared unconstitutional by the Constitutional Court, the Austrian legislator decided to phase out inheritance and gift tax. There is therefore no inheritance tax in Austria. However, the acquisition of real estate in Austria by reason of death is subject to real estate transfer tax instead. The basis for calculation is the value of the property. In principle, a staggered system of 0.5 % for the first EUR 250,000, 2 % for the next EUR 150,000 and 3.5 % for the remaining sum applies to acquisitions free of charge, whereby the tax debtor's acquisitions from the deceased in the last 5 years are to be added together (§ 7 I No. 2 lit. a GrEStG).
German heirs may nevertheless be subject to inheritance tax in Germany. If, for example, the heir is a person who has their domicile or habitual residence in Germany, they are subject to unlimited tax liability in Germany with regard to the acquisition of the inheritance (Section 2 ErbStG). The only possible remedy would be a Crediting of taxes already paid abroad. However, this can only on real estate and business assets be made, § 21 ErbStG. The question of whether crediting is also possible with regard to real estate transfer tax in Austria has not yet been conclusively clarified. Your specialist inheritance lawyer in Düsseldorf and Krefeld, Dr Michael Gottschalk, will be happy to answer any further questions you may have.