Real estate transfer tax – construction costs as part of the assessment basis

If buyers of a land share are integrated into an already finalized construction project, where they cannot exert significant influence on the building’s design and bear neither construction costs nor financial risk due to an agreed fixed price, they are not considered to be builders.

In such cases, the construction costs of the building are to be included in the assessment basis for real estate transfer tax pursuant to § 5 para. 1 item 1 of the Austrian Real Estate Transfer Tax Act (GrEStG).

VwGH 14.05.2024, Ra 2022/16/0087, Ra 2022/16/0088