How are ETFs taxed in Austria?
Austria applies a flat rate: 27.5 % capital-gains tax (KESt) on both ETF price gains AND dividends. With a domestic broker holding a reporting fund (Meldefonds), it is withheld automatically — you do not have to enter anything on your tax return. Two terms matter: reporting fund (Meldefonds) and deemed-distributed income (ausschüttungsgleiche Erträge).
The short answer
Income from ETFs is taxed in Austria at 27.5 % KESt — both realised price gains and ongoing dividends. If your account is with an Austrian bank/broker and the fund is a reporting fund (Meldefonds), the tax is withheld and paid automatically (final taxation) — you do not have to declare it yourself. There is no flat allowance like the German Sparerpauschbetrag.
What is taxed?
- Realised price gains: when you sell at a profit — 27.5 % on the difference from the purchase price.
- Distributions: dividends paid out by a distributing ETF — 27.5 %.
- Deemed-distributed income (ausschüttungsgleiche Erträge, agE): for accumulating reporting funds, the income notionally attributed each year but not actually paid out — also 27.5 %, due annually.
Reporting fund (Meldefonds): the decisive term
A reporting fund (Meldefonds) reports its income to the Austrian control body (OeKB). This has two advantages: taxation is correct and automatic, and you avoid the flat-rate penalty taxation. Almost all major UCITS ETFs are reporting funds. With a non-reporting fund, by contrast, a flat-rate estimate looms: 90 % of the annual increase in value, but at least 10 % of the year-end value is taxed — usually far less favourable. Check the reporting-fund status before buying.
🇩🇪🇦🇹 Austria vs. Germany — the differences
ETF taxation compared
| Feature | Austria | Germany |
|---|---|---|
| Tax rate | 27.5 % KESt | ~26.4 % (25 % + Soli) |
| Allowance | None | €1,000 Sparerpauschbetrag |
| Partial exemption | No | 30 % for equity ETFs |
| Accumulating funds annually | deemed-distributed income | Vorabpauschale |
| Automatic with domestic broker | Yes | Yes |
If your account is with a foreign broker (e.g. one without Austrian KESt withholding), the tax is NOT paid automatically. In that case you must declare the income yourself on your Austrian tax return and pay the KESt via assessment. Domestic brokers with automatic KESt save you this effort.
FAQ — ETF tax Austria
How high is the ETF tax in Austria?
27.5 % capital-gains tax (KESt) on realised price gains and on dividends. For accumulating reporting funds, the annual deemed-distributed income is likewise taxed at 27.5 %.
Do I have to declare ETF gains myself in Austria?
Not with an Austrian broker holding a reporting fund — the bank withholds the KESt automatically (final taxation). With foreign brokers that do not withhold KESt, you must declare the income yourself on your tax return.
What is a reporting fund (Meldefonds)?
A fund that reports its income to the Austrian control bank (OeKB). This ensures correct, automatic taxation and avoids the flat-rate penalty taxation of non-reporting funds. Almost all major UCITS ETFs are reporting funds.
Is there a tax allowance in Austria like in Germany?
No. The German Sparerpauschbetrag (€1,000) and the 30 % partial exemption for equity ETFs do not exist in Austria. In return, the rate is a uniform 27.5 % and the procedure with domestic brokers is straightforward.
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