Deadline for giving up the primary residence in connection with the primary residence exemption

When selling a property that served as the seller’s primary residence up to the time of sale, the primary residence exemption may apply if the residence is relinquished in the course of the sale and the other conditions under § 30 para. 2 item 1 of the Austrian Income Tax Act (EStG 1988) are met.

If, at the time of sale, it is already clear that the primary residence will be changed, the seller is granted a reasonable period to establish a new primary residence. This period is determined on a case-by-case basis. If the acquisition of the new primary residence takes longer, this period may exceed one year.

VwGH 22.02.2024, Ra 2022/13/0091 in conjunction with § 30 para. 2 item 1 EStG 1988