Leaving Austria: What Happens for Tax When You Move Abroad

Lisbon, Limassol or Dubai: when you turn your back on Austria, your first thoughts are usually about visas, flats and removal companies. For tax purposes, however, leaving Austria is decided in three other places: the residence you leave behind or keep, the shares and securities you take with you, and the income that continues to flow from Austria. On top of that, the Budget Measures Act 2026 (Budgetmaßnahmengesetz 2026) has introduced new obligations since July 2026 for people whose exit tax has been deferred. This article explains what happens for tax when leaving Austria and what you should clarify before you move abroad.

When Tax Liability in Austria Ends

Anyone who has a residence or their habitual abode in Austria has unlimited tax liability there (§ 1 Abs. 2 EStG 1988, the Austrian Income Tax Act). You have a residence if you hold a dwelling in circumstances which suggest that you will keep and use it (§ 26 Abs. 1 BAO, the Federal Fiscal Code). A habitual abode is established by a stay that is not merely temporary, and in any case by a stay of more than six months (§ 26 Abs. 2 BAO).

So when does tax liability end? It only ends once both have ceased. If you keep your flat in Vienna to use it on visits, you will as a rule remain subject to unlimited tax liability, even if you spend most of the year abroad. Whether you are also regarded as resident in your new country, and which state then takes precedence, is governed by the relevant double tax treaty.

The Second Home Regulation: Keeping a Flat Without Tax Liability?

The Second Home Regulation (Zweitwohnsitzverordnung, BGBl. II Nr. 528/2003) creates an exception. If the centre of your vital interests has been abroad for more than five calendar years, a flat in Austria only counts as a residence in those years in which it is used on more than 70 days. You must add up the days across all dwellings in Austria. A prerequisite is a record showing the days on which the flat was used. When you move away, the regulation only takes effect from the following year.

Keeping a flat without remaining liable to tax is therefore possible, but subject to strict conditions. Moreover, the regulation only concerns the residence. If you stay in Austria for more than six months, you will still have unlimited tax liability through your habitual abode.

Deregistering with the Registration Office

If you give up your accommodation in a dwelling, you must deregister with the registration authority within three days before or after doing so (§ 4 Abs. 1 Meldegesetz 1991, the Registration Act) – in practice, at the registration office of the municipality or the city administration. This can be done at any registration authority. According to oesterreich.gv.at, if your new address abroad is not yet known, stating the destination country is sufficient at first. Deregistering is an important indication that you have moved away, but it does not end tax liability by itself. What counts is still residence and habitual abode.

Exit Tax on GmbH Shares and Securities

The biggest financial consequence of a move abroad often concerns capital assets. If moving away restricts Austria’s right to tax shares, securities, derivatives or cryptocurrencies, this is treated as a disposal (§ 27 Abs. 6 Z 1 EStG 1988). The tax is levied on the difference between the fair market value at the time of departure and the acquisition cost, at the special tax rate of 27.5% (§ 27a EStG 1988). The law sets no minimum shareholding; GmbH shares are also covered, for example those in your own company. Whether and to what extent the taxing right is restricted follows from Austrian law and the double tax treaty with your new state of residence.

The destination country is decisive. If you move to an EU or EEA state, the tax is, on application, merely determined in the assessment notice but not levied until the shares or securities are actually sold (§ 27 Abs. 6 Z 1 lit. a EStG 1988). However, a later onward move to a state outside the EU and EEA also counts as a disposal. If you move directly to a third country such as the United Arab Emirates, there is no such deferral; the tax is levied immediately.

Since July 2026: the New Annual Proof Requirement

With the Budget Measures Act 2026 (BGBl. I Nr. 43/2026), the legislator has attached a new condition to this deferral. If the income not levied in an assessment year exceeds €100,000 in total, the taxpayer must provide annual proof that no event triggering the tax has occurred – for example no sale and no onward move to a third country. The proof must be provided in writing or via FinanzOnline, stating the current address, in each case by the end of the following year (§ 27 Abs. 6 Z 1 lit. f EStG 1988).

If this requirement is breached, the breach itself counts as a disposal and the deferred tax becomes due. This consequence applies to deferrals decided in assessment notices issued after 30 June 2026. For older cases in which more than €100,000 was not levied, a one-off proof stating the current address must be provided by 31 December 2026 (§ 124b Z 493 EStG 1988). If you left Austria for another EU country years ago, you should therefore keep this deadline in mind.

Business Assets: Instalment Payments When Moving Within the EU

A separate rule applies to business assets, for example those of sole traders. If assets or an entire business are transferred abroad, the hidden reserves must be taxed (§ 6 Z 6 EStG 1988). If the move is to an EU or EEA state, instalment payments are possible on application: over five years for fixed assets and over two years for current assets. If the assets are later sold or moved to a third country, the outstanding instalments become due immediately; such events must be reported to the tax office within three months.

What Remains Taxable in Austria

Even after you have moved away, Austria may continue to tax certain income. This is known as limited tax liability (§ 1 Abs. 3 and § 98 EStG 1988). It remains taxable in particular for:

• rental income from a flat or house in Austria (§ 98 Abs. 1 Z 6),
• gains from the sale of real estate in Austria (§ 98 Abs. 1 Z 7),
• gains from the sale of a shareholding in a corporation with its registered office or place of management in Austria, if the taxpayer held at least 1% at any time within the last five calendar years (§ 98 Abs. 1 Z 5 lit. e), to the extent the double tax treaty permits this.

So if you let your flat rather than sell it, you continue to declare the rent in Austria.

Special Case Dubai: the Treaty with the Emirates

The Emirates are a special case. Unlike Germany, Austria has a valid treaty for the avoidance of double taxation with the United Arab Emirates (BGBl. III Nr. 88/2004). It has always contained a rule for persons regarded as resident in both states (Art. 4 Abs. 2). An amending protocol, in force since 1 March 2023, introduced among other things an anti-abuse clause and generally provides for the credit method for persons resident in Austria (BGBl. III Nr. 211/2022). The exit tax on shares is not affected: as the Emirates are not an EU or EEA state, there is no deferral. What Germans need to consider when taking this step is covered in our article “Moving to Dubai: What Germans Need to Know About Tax When Leaving”.

Checklist Before Leaving Austria

The most important steps before leaving Austria, as a checklist:

• Decide whether the flat in Austria will be given up, let, or used as a second home with a record of days.
• Deregister within three days before or after moving out and keep the confirmation.
• List all shares, securities and crypto assets with their acquisition cost and current value.
• If moving to the EU or EEA, apply for the deferral and note the annual proof requirement in your diary.
• If moving to a third country, plan for the tax that becomes due immediately.
• Continue to declare income from Austria, such as rent.
• Meet and document the requirements for tax residence in your new country.

How double tax treaties resolve residence when you have two homes is explained in the article “Double Tax Treaties: How a Treaty Protects Your Company Abroad”.

Frequently Asked Questions About Leaving Austria

Frequently asked questions from our conversations with people emigrating:

This article is for general information only and does not replace tax or legal advice. Last reviewed: October 2026.