Inheritance in Austria: Laws, Taxes, and What Expats Need to Know

Inheritance in Austria: Laws, Taxes, and What Expats Need to Know Inheritance in Austria: no inheritance tax since 2008, forced heirship Pflichtteil rules, probate Verlassenschaftsverfahren, property transfer tax — complete guide for expats. Topics: Daily Life, Economy.

Understanding inheritance in Austria is essential for anyone living in the country — whether you are an EU citizen, a third-country national, or a long-term expat. Austrian inheritance law differs significantly from common law systems, with unique rules on forced heirship, a court-supervised probate process, and — importantly — no inheritance tax since 2008.

This guide covers: who inherits under Austrian law (gesetzliche Erbfolge), how the compulsory portion Pflichtteil works, what taxes actually apply, the probate procedure Verlassenschaftsverfahren, cross-border inheritance rules under EU law, and practical steps for expats to plan their estate.

Who Inherits by Law: Gesetzliche Erbfolge

When someone dies without a will — known as dying intestate — Austrian law determines who inherits through a system of parental groups called Parentelen (parantellae). The system is hierarchical: each group inherits only if no members of the preceding group exist.

First parantella — the deceased’s children and their descendants. They inherit in equal shares. If a child has predeceased the parent, that child’s own children (the grandchildren) inherit their share by right of representation.

Second parantella — the deceased’s parents and their descendants (siblings, nieces, nephews). This group inherits only if there are no children or descendants of children.

Third parantella — grandparents and their descendants.

The surviving spouse or registered partner (Ehegatte or eingetragener Partner) always inherits, but their share depends on which parantella inherits alongside them:

• With children: spouse receives one-third, children receive two-thirds.
• With parents (no children): spouse receives one-half.
• With grandparents (no parents, no children): spouse receives the entire estate.

According to the WKO, Austrian inheritance law was significantly reformed by the Erbrechts-Änderungsgesetz 2015, effective from 1 January 2017. The reform improved the position of surviving spouses and introduced clearer rules for calculating shares.

A key difference from many legal systems: Austrian law does not recognise “inheritance by right of representation” in the same way as common law. Instead, the parantella system achieves a similar result through the descendants of a predeceased child stepping into that child’s place.

Wills in Austria: Testament

Austrian law recognises several forms of Testament (will), each with different formal requirements:

• Eigenhändiges Testament (holographic will) — must be entirely handwritten, dated, and signed by the testator. This is the simplest and most cost-effective form, but strict formalities apply. A typed or computer-printed will is invalid unless witnessed.
• Fremdhändiges Testament — a will written by someone else but signed by the testator in the presence of three witnesses. Less common due to the complexity of the witnessing requirement.
• Notarielles Testament (notarial will) — drafted and certified by a notary public. This guarantees legal validity and makes the will difficult to challenge after death.

For those with complex assets or cross-border situations, a notarial will is strongly recommended. The cost ranges from €150 to €500 depending on complexity.

A more binding instrument is the Erbvertrag (inheritance contract) — a bilateral agreement between the testator and an heir, signed by both parties during the testator’s lifetime. Unlike a will, an Erbvertrag cannot be unilaterally revoked; both parties must agree to any changes.

As explained by oesterreich.gv.at, the testator can also appoint a Vollstrecker (executor) to oversee the distribution of the estate according to the will’s instructions.

The Compulsory Portion: Pflichtteil

One of the most distinctive features of Austrian inheritance law is Pflichtteil — the compulsory or forced share. This ensures that certain close relatives receive a minimum portion of the estate, regardless of what the will says.

The following persons are entitled to a Pflichtteil:

• Children (including adopted children) — each child is entitled to half of what they would receive under intestate succession.
• Spouse or registered partner — entitled to half of their statutory share.
• Parents — only if there are no children or surviving spouse.

The Pflichtteil amounts to one-half of the statutory share (gesetzliches Erbteil). For example, if a child would inherit 50% under intestate rules, their compulsory portion is 25%.

Important: the compulsory portion is paid in cash, not in property. The heirs named in the will must pay the Pflichtteil to the excluded relative within one year of the deceased’s death. As erbrechtsinfo.at explains, late payment accrues interest at 4% per annum.

Disinheriting a Pflichtteil heir — Enterbung — is possible only in exceptional circumstances: committing a serious crime against the testator, abandoning them in a helpless state, or similar grave misconduct. The grounds must be proven with solid evidence.

Inheritance Tax: What You Don’t Have to Pay

The good news: Erbschaftssteuer (inheritance tax) in Austria was abolished on 1 August 2008. This means that inheriting cash, securities, personal property, or other movable assets in Austria is entirely tax-free.

As confirmed by oesterreich.gv.at, neither inheritance tax nor gift tax is currently levied in Austria. This makes the country one of the few in Europe with no inheritance tax.

However, there are important exceptions:

• Land transfer tax (Grunderwerbsteuer, GrESt) — applies when real estate is inherited. The rate is tiered: 0.5% on the first €250,000, 2% on €250,000–€400,000, and 3.5% above €400,000 of the property’s assessed value (Grundstückswert), which is often lower than market value.
• Land register entry fee (Grundbucheintragungsgebühr) — 1.1% of the property value.
• Real estate capital gains tax (Immobilienertragsteuer, ImmoESt) — 30% — only triggered when the inherited property is later sold. The heir “inherits” the deceased’s acquisition cost, which can significantly affect the taxable gain.

According to Brandauer Rechtsanwälte, there is periodic political discussion about reintroducing an inheritance tax. The SPÖ proposed taxing inheritances over €1 million at progressive rates up to 50%, but as of 2026 no law has been passed.

For expats inheriting assets from or in Austria: if your home country levies inheritance tax (e.g., the US, Germany, France), Austria does not offer a tax credit — you may need to pay tax according to your country of tax residence.

The Probate Process: Verlassenschaftsverfahren

Inheritance in Austria always goes through a formal probate procedure called Verlassenschaftsverfahren, supervised by the district court (Bezirksgericht) and carried out by a notary acting as court commissioner (Gerichtskommissär).

Here is the step-by-step process:

1. Death notification — the hospital, funeral home, or family notifies the court. The court appoints a notary to handle the case.
2. Asset inventory — the notary collects information on the deceased’s assets and debts: bank accounts, real estate, securities, vehicles, liabilities.
3. Will search and reading — the notary checks whether a will exists. If found, it is opened and read in the presence of the heirs.
4. Heir identification — the notary identifies all legal and testamentary heirs and invites them to review their rights.
5. Acceptance or refusal — heirs decide to accept (Erbschaftsannahme) or refuse (Erbschaftsentschlagung) the inheritance.
6. Einantwortung — the court issues a final decree officially transferring the estate to the heirs.

As noted by the WKO, the entire process typically takes three to twelve months, depending on the complexity of the estate and whether disputes arise among heirs.

For expats: the entire procedure is conducted in German. All foreign-language documents must be translated by a certified translator and notarised, with an apostille where required.

The probate procedure — Verlassenschaftsverfahren — is mandatory in Austria even when a will exists. The court supervises every stage to protect the rights of all heirs and creditors.

— Mag. Sabine Huber, Attorney-at-Law specialising in inheritance law, Vienna

Declining an Inheritance: Erbschaftsverzicht

Accepting an inheritance is a right, not an obligation. Heirs can decline it through Erbschaftsentschlagung (also called Ausschlagung der Erbschaft).

The refusal must be declared in notarial form or recorded with the court within three months of learning of the death and the right to inherit. It can be total or in favour of a specific person.

When refusal makes sense:

• The estate is heavily in debt (überschuldeter Nachlass) — liabilities exceed assets.
• The heir wishes to avoid the obligations and administration costs attached to the estate.
• Refusal allows the share to pass to another heir without tax implications.

A separate instrument — Erbschaftsverzicht — is a contract waiving future inheritance rights, signed during the testator’s lifetime. This is commonly used in tax and estate planning.

Cross-Border Inheritance: EU Succession Regulation

For expats, the international dimension of inheritance is especially important. Since 17 August 2015, the EU Succession Regulation (Brussels IV, Regulation (EU) No 650/2012) determines which country’s law applies to cross-border inheritances.

The general rule: the law of the country of the deceased’s last habitual residence (gewöhnlicher Aufenthalt) applies — regardless of citizenship. If you live in Austria, Austrian inheritance law governs your estate, even if you are a US, UK, or Russian citizen.

However, the testator can choose the law of their nationality (Rechtswahl) — but only in a will or inheritance contract. For example, a French citizen living in Austria can stipulate that French inheritance law applies to their estate.

Important: the EU Succession Regulation covers inheritance law only — not tax matters. Inheritance tax is determined by each country’s national legislation.

As oesterreich.gv.at explains, for non-EU citizens the rules may differ, and it is advisable to consult a notary specialising in international inheritance law.

Costs of the Inheritance Process

Although there is no inheritance tax, the probate procedure itself involves several costs:

Cost item	Approximate amount
Notary fees (Gerichtskommissär)	0.5–2% of estate value
Land transfer tax (GrESt)	0.5–3.5% tiered
Land register entry fee	1.1% of property value
Certified translation of documents	€50–150 per document
Apostille and legalisation	€20–80 per document
Lawyer (if disputes arise)	from €250/hour

According to the WKO, notary fees are calculated according to the Gerichtskommissionstarifgesetz scale. The exact amount depends on the estate value and case complexity.

For heirs living abroad, additional costs include document legalisation: German translation by a certified translator, notarisation, and apostille (if the country of origin is a party to the 1961 Hague Convention).

Special Considerations for Expats

Inheritance in Austria presents unique challenges for expats:

• Assets abroad — if you own property or bank accounts in your home country, inheritance of those assets is governed by the law of the country where the property is located (lex rei sitae).
• Double taxation risk — some countries (US, Germany) tax their citizens on worldwide inheritances. Austrian tax treaties do not always prevent double taxation.
• Documentation from non-EU countries — birth, marriage, and death certificates require certified German translation, notarisation, and apostille. Without these, the notary cannot verify family relationships.
• Currency controls — large sums transferred from Austria to another country may trigger AML (anti-money laundering) checks.

It is strongly recommended to make a will under Austrian law — this significantly simplifies the process for your heirs. For more on document legalisation, see our guide to document legalisation in Austria. If you plan to pass on real estate through inheritance, you may also find our overview of housing prices and rents in Austria useful. For a broader understanding of financial obligations in Austria, read about alimony and support payments.

Making a Will as a Foreign National

If you are a foreign national living in Austria, making a will involves several key considerations.

First, under the EU Succession Regulation, Austrian law will apply to your estate if Austria is your habitual residence — regardless of your citizenship.

Second, you can choose your home country’s law in your will. The will must explicitly state: “The law of [country] shall govern the succession of my estate.” Without such a clause, Austrian law applies.

Third, if you own real estate in two countries, each property may be governed by a different legal system. Real estate is always subject to the law of the country where it is located.

Practical advice: have a notarial will (Notarielles Testament) prepared in German. This minimises translation issues and ensures legal validity after your death. The cost at a notary ranges from €150 to €500 depending on complexity.

Business Inheritance and Family Assets

Inheriting a business (Unternehmensnachfolge) follows the same general rules as other assets, but with important specificities. If the deceased owned a company, the inheritance of business shares is subject to partnership agreements.

For partnerships (Personengesellschaft), the remaining partners must consent to a new heir joining the business. Without consent, the heir receives only a cash settlement equal to the value of the share. For sole proprietorships (Einzelunternehmen), the heir may continue the business but must notify the commercial register (Firmenbuch).

Joint bank accounts (Gemeinschaftskonto) are typically frozen upon the death of one account holder until the Verlassenschaftsverfahren is completed. The exception is accounts with a survivorship clause (Oder-Konto mit Überlebensklausel), which pass automatically to the surviving account holder.

Life insurance policies (Lebensversicherung) deserve special attention. If a beneficiary is named in the policy, the payout goes directly to that person outside the probate process — it does not form part of the estate. This makes life insurance a popular estate planning tool in Austria.

Lifetime Gifts: Schenkung as an Alternative

Since Austria abolished gift tax alongside inheritance tax in 2008, lifetime gifts (Schenkung) are often used as a tax-efficient estate planning tool. Transferring assets during your lifetime can significantly reduce the eventual inheritance burden on your heirs.

However, the Pflichtteilsergänzung (supplementation of the compulsory portion) rules must be considered. If the deceased made substantial gifts within three years before death, those amounts are added back to the estate for Pflichtteil calculation purposes. For gifts made more than three years before death, the value is reduced by 30% per year — meaning gifts made more than ten years before death are fully excluded from the calculation.

Tax implications: gifting real estate triggers Grunderwerbsteuer at the same tiered rates as inheritance (0.5–3.5%). Gifts exceeding €50,000 within five years to the same person must be reported to the tax authorities under § 121a BAO.

As noted by Brandauer Rechtsanwälte, the choice between gifting during life or leaving an inheritance should be evaluated for both inheritance law and tax consequences.

Frequently Asked Questions

Is there inheritance tax in Austria?

No. Inheritance tax (Erbschaftssteuer) has been abolished in Austria since 1 August 2008. However, inheriting real estate triggers land transfer tax (Grunderwerbsteuer) at tiered rates of 0.5–3.5%, plus a 1.1% land register entry fee.

Who is entitled to a compulsory share (Pflichtteil)?

Children (including adopted children), the spouse or registered partner, and — if there are no children or spouse — the parents. The compulsory portion is half of the statutory share and is paid in cash, not property.

How do I refuse an inheritance in Austria?

Refusal (Erbschaftsentschlagung) must be declared in notarial form or before the court within three months of learning of the death and your inheritance right. Refusal can be total or in favour of a specific person.

Which law applies if I am a foreign citizen?

Under the EU Succession Regulation, the law of your last habitual residence applies. If you live in Austria, Austrian inheritance law governs your estate. You can choose your home country’s law in your will.

How long does the probate process take?

Typically three to twelve months. The timeline depends on the estate’s complexity, whether disputes arise among heirs, and how quickly documents are gathered. The process is managed by a notary under court supervision.

What to Remember About Inheritance in Austria

Austrian inheritance law has several distinctive features that every expat should understand:

• No inheritance tax — Erbschaftssteuer was abolished in 2008. This is a major advantage compared to Germany, France, or the United States.
• Pflichtteil protects family — the compulsory portion ensures close relatives receive at least half their statutory share, even if excluded from the will.
• Court-supervised process — Verlassenschaftsverfahren is mandatory for all estates, regardless of size.
• Cross-border aspects are complex — if you own assets in multiple countries, make a will under Austrian law and consult a specialist.
• Foreign documents need legalisation — certified German translation, notarisation, and apostille are required.

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