Hobby loss rules – extension of the forecast period

According to the Austrian “Liebhabereiverordnung” (regulation on hobby activities), the preparation and submission of a positive income forecast is mandatory for rental activities to be recognized as a source of taxable income. This applies to both large-scale rentals (e.g., rental of entire buildings) and small-scale rentals (e.g., rental of condominiums, single-family homes, or properties with qualified usage rights).

For large-scale rentals, the assessment period until December 31, 2023 was 25 years from the start of the rental activity or 28 years from the first occurrence of expenses. As of January 1, 2024, both periods have been extended by 5 years — to 30 years from the start of rental and 33 years from the first occurrence of expenses.

For small-scale rentals, the assessment period until December 31, 2023 was 20 years from the start of the rental activity or 23 years from the first occurrence of expenses. These have also been extended by 5 years as of January 1, 2024 — to 25 years and 28 years, respectively.

BMF decree dated March 27, 2024, Federal Law Gazette II No. 89/2024